Zacks Reiterates Neutral Rating for MeadWestvaco Corp. (MWV)
MeadWestvaco Corp. (NYSE:MWV)‘s stock had its “neutral” rating reiterated by Zacks in a research note issued on Thursday. They currently have a $45.00 price objective on the stock. Zacks‘s price objective suggests a potential upside of 4.29% from the company’s current price.
Zacks’ analyst wrote, “MeadWestvaco reported second-quarter 2014 adjusted earnings of $0.53 per share, which marked a twofold increase from the year-ago quarter and came ahead of the Zacks Consensus Estimate of $0.50. Though MeadWestvaco did not provide any specific guidance for fiscal 2014, it expects enhanced operating productivity and continued improvement to drive the second half of 2014. Further, improvement in third-quarter will be driven by increase in packaging volumes, ongoing value-based pricing initiatives and cost reduction efforts. However, continued soft economic conditions in Brazil, demand challenges in frozen food markets and increased cost of raw materials remain matters of concern. We are thus reiterating our Neutral recommendation on MeadWestvaco with a target price of $45.”
Several other analysts have also recently commented on the stock. Analysts at Bank of America reiterated a “buy” rating on shares of MeadWestvaco Corp. in a research note on Friday, June 20th. They now have a $48.00 price target on the stock, up previously from $44.00. Separately, analysts at Buckingham Research downgraded shares of MeadWestvaco Corp. from a “buy” rating to a “neutral” rating in a research note on Tuesday, June 3rd. Finally, analysts at RBC Capital raised their price target on shares of MeadWestvaco Corp. from $38.00 to $44.00 in a research note on Tuesday, June 3rd. They now have a “sector perform” rating on the stock. One investment analyst has rated the stock with a sell rating, four have given a hold rating and four have assigned a buy rating to the company. The company currently has a consensus rating of “Hold” and an average target price of $42.79.
MeadWestvaco Corp. (NYSE:MWV) traded down 2.41% on Thursday, hitting $42.11. The stock had a trading volume of 485,244 shares. MeadWestvaco Corp. has a 52-week low of $33.38 and a 52-week high of $44.72. The stock’s 50-day moving average is $43.74 and its 200-day moving average is $39.43. The company has a market cap of $7.069 billion and a price-to-earnings ratio of 9.00. MeadWestvaco Corp. also saw a large decrease in short interest in the month of June. As of June 30th, there was short interest totalling 3,915,534 shares, a decrease of 36.6% from the June 13th total of 6,179,122 shares. Approximately 2.4% of the shares of the company are short sold. Based on an average daily trading volume, of 1,558,678 shares, the days-to-cover ratio is currently 2.5 days.
MeadWestvaco Corp. (NYSE:MWV) last issued its quarterly earnings data on Wednesday, July 30th. The company reported $0.53 EPS for the quarter, beating the Thomson Reuters consensus estimate of $0.50 by $0.03. The company had revenue of $1.47 billion for the quarter, compared to the consensus estimate of $1.45 billion. During the same quarter in the prior year, the company posted $0.37 earnings per share. The company’s quarterly revenue was up 5.5% on a year-over-year basis. On average, analysts predict that MeadWestvaco Corp. will post $1.79 earnings per share for the current fiscal year.
The company also recently declared a quarterly dividend, which is scheduled for Tuesday, September 2nd. Stockholders of record on Friday, August 1st will be given a dividend of $0.25 per share. This represents a $1.00 dividend on an annualized basis and a yield of 2.32%. The ex-dividend date of this dividend is Wednesday, July 30th.
MeadWestvaco Corporation (NYSE:MWV) is a global packaging company providing solutions to the healthcare, beauty and personal care, food, beverage, home and garden, tobacco, and agricultural industries.
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