Edgewell Personal Care (EPC) Earns Hold Rating from Wells Fargo & Co
Edgewell Personal Care (NYSE:EPC)‘s stock had its “hold” rating reaffirmed by analysts at Wells Fargo & Co in a research report issued on Thursday, February 8th.
The analysts wrote, “Wet Shave 6.4% vs. our 4.5% est., Sun & Skin Care +2.6% vs. our +3.0%, Feminine Care 7.3% vs. our 10.0% and All Other flat vs. our 2.0%. Gross margin was 42.8% (420bps y/y), well below our estimate of 46.9%. SG&A exp was up +3.6%, above our expectations but adv & promo exp was lower, down 3.2%, with EBIT margin 8.1% (580bps y/y), well below our estimate of 12.6%. FY18 Guidance Raised on Tax Benefit: (1) Organic sales growth down ~1% (vs. prior flat to down slightly); (2) adjusted EBIT margin ~flat y/y (prior +2025bps); and (3) Adjusted EPS of $3.90$4.10 (prior $3.80$4.00), reflecting a $0.10 benefit from the Tax Act and vs. our/consensus $3.92/$3.84. EPC appears to be flowing the entire $0.10 tax benefit to EPS. Bottom Line: EPC lowered its EBIT margin assumptions, but kept EPS unchanged (ex. taxes), leaving us confused where the difference is located (likely other belowtheline items).””
Several other equities research analysts have also recently weighed in on the stock. Bank of America cut shares of Edgewell Personal Care from a “neutral” rating to an “underperform” rating in a research report on Thursday, January 4th. Zacks Investment Research cut shares of Edgewell Personal Care from a “hold” rating to a “strong sell” rating in a research report on Tuesday, November 14th. KeyCorp restated a “hold” rating on shares of Edgewell Personal Care in a research report on Friday, November 24th. Jefferies Group restated a “hold” rating and issued a $78.00 price target on shares of Edgewell Personal Care in a research report on Thursday, October 19th. Finally, TheStreet cut shares of Edgewell Personal Care from a “c” rating to a “d+” rating in a research report on Thursday, November 9th. Two analysts have rated the stock with a sell rating, nine have given a hold rating and three have assigned a buy rating to the company’s stock. The stock currently has an average rating of “Hold” and an average target price of $68.67.
Edgewell Personal Care (NYSE:EPC) last released its earnings results on Thursday, February 8th. The company reported $0.20 EPS for the quarter, missing the consensus estimate of $0.57 by ($0.37). Edgewell Personal Care had a positive return on equity of 11.24% and a negative net margin of 0.92%. The company had revenue of $468.30 million during the quarter, compared to analysts’ expectations of $470.63 million. During the same period last year, the firm posted $0.66 EPS. Edgewell Personal Care’s quarterly revenue was down 3.4% compared to the same quarter last year. equities analysts expect that Edgewell Personal Care will post 3.83 EPS for the current fiscal year.
Edgewell Personal Care announced that its board has approved a stock buyback plan on Thursday, February 8th that permits the company to buyback 10,000,000 shares. This buyback authorization permits the company to purchase shares of its stock through open market purchases. Shares buyback plans are typically an indication that the company’s board believes its stock is undervalued.
In other news, Director James C. Johnson purchased 1,000 shares of the firm’s stock in a transaction on Wednesday, February 14th. The stock was acquired at an average cost of $52.95 per share, with a total value of $52,950.00. Following the completion of the transaction, the director now owns 1,000 shares in the company, valued at approximately $52,950. The purchase was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, CEO David P. Hatfield purchased 3,969 shares of the firm’s stock in a transaction on Monday, February 12th. The shares were purchased at an average cost of $50.38 per share, with a total value of $199,958.22. Following the completion of the transaction, the chief executive officer now owns 18,619 shares of the company’s stock, valued at approximately $938,025.22. The disclosure for this purchase can be found here. Over the last three months, insiders have acquired 7,419 shares of company stock valued at $376,027. Insiders own 0.97% of the company’s stock.
Several hedge funds have recently added to or reduced their stakes in the business. MetLife Investment Advisors LLC purchased a new stake in shares of Edgewell Personal Care during the fourth quarter valued at about $2,105,000. Gotham Asset Management LLC lifted its position in shares of Edgewell Personal Care by 186.9% during the fourth quarter. Gotham Asset Management LLC now owns 255,148 shares of the company’s stock valued at $15,153,000 after buying an additional 166,224 shares during the last quarter. MainStreet Investment Advisors LLC purchased a new stake in shares of Edgewell Personal Care during the fourth quarter valued at about $287,000. Jane Street Group LLC lifted its position in shares of Edgewell Personal Care by 107.6% during the fourth quarter. Jane Street Group LLC now owns 14,314 shares of the company’s stock valued at $850,000 after buying an additional 7,418 shares during the last quarter. Finally, Verition Fund Management LLC lifted its position in shares of Edgewell Personal Care by 74.4% during the fourth quarter. Verition Fund Management LLC now owns 21,898 shares of the company’s stock valued at $1,301,000 after buying an additional 9,341 shares during the last quarter. 93.07% of the stock is owned by institutional investors and hedge funds.
About Edgewell Personal Care
Edgewell Personal Care Company is a manufacturer and marketer of personal care products in the wet shave, sun and skin care, feminine care and infant care categories. As of September 30, 2016, the Company had a portfolio of over 25 brands. It manages its business in four segments: Wet Shave, Sun and Skin Care, Feminine Care and All Other.
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