Newell Brands (NWL) Upgraded at Zacks Investment Research
Zacks Investment Research upgraded shares of Newell Brands (NYSE:NWL) from a sell rating to a hold rating in a research note published on Monday. Zacks Investment Research currently has $36.00 price objective on the stock.
According to Zacks, “Newell Brands is on track to attain its transformation goals through market share gains, point of sale growth, innovation, e-commerce improvement, and cost-savings plans. Further, stringent progress on its Project Renewal Program and Growth Game Plan bode well. This is likely to improve cost savings and accelerate growth by simplifying and strengthening the company’s portfolio. Additionally, Newell’s shareholder-friendly moves and value-added investments should attract investors’ attention. However, the company has lagged the industry in the last three months due to the after-effects of Hurricane Harvey, which weighed on its third-quarter 2017 results. The quarter marked the company’s first earnings miss in more than three years, while sales lagged after two straight beats. Moreover, the company slashed its outlook for 2017. Estimates for the current fiscal have been going up ahead of the fourth quarter earnings.”
A number of other equities research analysts have also weighed in on the stock. Jefferies Group reissued a hold rating and set a $47.00 price objective on shares of Newell Brands in a report on Thursday, October 19th. Citigroup decreased their target price on shares of Newell Brands from $63.00 to $42.00 and set a buy rating for the company in a research report on Friday, November 3rd. Raymond James Financial reiterated a market perform rating on shares of Newell Brands in a research report on Friday, November 3rd. TheStreet downgraded shares of Newell Brands from a b- rating to a c+ rating in a research report on Tuesday, November 14th. Finally, Barclays reiterated a buy rating and issued a $35.00 price objective on shares of Newell Brands in a research report on Wednesday, December 6th. One research analyst has rated the stock with a sell rating, nine have given a hold rating and eight have issued a buy rating to the company. The company has an average rating of Hold and a consensus target price of $45.20.
Newell Brands (NYSE:NWL) last issued its quarterly earnings data on Thursday, November 2nd. The company reported $0.86 earnings per share (EPS) for the quarter, missing the Thomson Reuters’ consensus estimate of $0.92 by ($0.06). The business had revenue of $3.68 billion for the quarter, compared to analysts’ expectations of $3.71 billion. Newell Brands had a net margin of 8.34% and a return on equity of 11.52%. The business’s quarterly revenue was down 7.0% compared to the same quarter last year. During the same period in the previous year, the business earned $0.78 earnings per share. research analysts expect that Newell Brands will post 2.81 earnings per share for the current year.
Newell Brands announced that its Board of Directors has authorized a share buyback plan on Tuesday, September 26th that permits the company to repurchase $256.00 million in outstanding shares. This repurchase authorization permits the company to repurchase up to 1.3% of its stock through open market purchases. Stock repurchase plans are often a sign that the company’s management believes its shares are undervalued.
The firm also recently announced a quarterly dividend, which was paid on Friday, December 15th. Shareholders of record on Thursday, November 30th were issued a dividend of $0.23 per share. The ex-dividend date of this dividend was Wednesday, November 29th. This represents a $0.92 dividend on an annualized basis and a yield of 2.95%. Newell Brands’s dividend payout ratio (DPR) is presently 35.52%.
In other news, CEO Michael B. Polk acquired 7,000 shares of Newell Brands stock in a transaction dated Monday, November 20th. The shares were acquired at an average cost of $28.22 per share, for a total transaction of $197,540.00. Following the acquisition, the chief executive officer now owns 616,296 shares of the company’s stock, valued at $17,391,873.12. The acquisition was disclosed in a legal filing with the SEC, which is accessible through the SEC website. 0.97% of the stock is currently owned by company insiders.
Several hedge funds and other institutional investors have recently bought and sold shares of the stock. Ameriprise Financial Inc. grew its position in Newell Brands by 28.1% during the 2nd quarter. Ameriprise Financial Inc. now owns 7,796,439 shares of the company’s stock worth $417,953,000 after purchasing an additional 1,709,917 shares during the last quarter. FIL Ltd purchased a new position in Newell Brands during the 2nd quarter worth $76,301,000. Vanguard Group Inc. grew its position in Newell Brands by 2.8% during the 2nd quarter. Vanguard Group Inc. now owns 47,877,545 shares of the company’s stock worth $2,567,193,000 after purchasing an additional 1,305,820 shares during the last quarter. Lord Abbett & CO. LLC grew its position in Newell Brands by 57.4% during the 2nd quarter. Lord Abbett & CO. LLC now owns 3,200,022 shares of the company’s stock worth $171,585,000 after purchasing an additional 1,167,393 shares during the last quarter. Finally, Teachers Advisors LLC grew its position in Newell Brands by 86.0% during the 2nd quarter. Teachers Advisors LLC now owns 2,421,593 shares of the company’s stock worth $129,846,000 after purchasing an additional 1,119,376 shares during the last quarter. 94.29% of the stock is currently owned by hedge funds and other institutional investors.
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About Newell Brands
Newell Brands Inc is a marketer of consumer and commercial products. The Company’s segments include Writing, Home Solutions, Commercial Products, Baby & Parenting, Branded Consumables, Consumer Solutions, Outdoor Solutions and Process Solutions. Its products are marketed under a portfolio of brands, including Paper Mate, Sharpie, Dymo, Expo, Parker, Elmer’s, Coleman, Jostens, Marmot, Rawlings, Mr.
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