Avery Dennison Corp. (AVY) Rating Lowered to Hold at Zacks Investment Research
Avery Dennison Corp. (NYSE:AVY) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report released on Tuesday.
According to Zacks, “Following the strong operating performance in the second quarter 2016, Avery Dennison raised its adjusted earnings per share guidance to a new range of $3.80–$3.95 for 2016. Its endeavor to reduce fixed costs, localize material sourcing and responding more quickly to changes in customer needs will aid growth. The company's recent acquisition of Mactac will add capacity to support growth for both graphics and tapes. It will also gain from constant focus on productivity, capital discipline, execution of strategies, cost control and share repurchases. These are well reflected in the company’s positive record of earnings surprises in recent quarters. However, Avery Dennison anticipates that the negative impact of currency translation will reduce full year 2016 net sales by around 2.5% and pretax earnings by roughly $18 million. Challenging comparisons, weak demand in Europe and China also remain concerns.”
Several other analysts have also weighed in on AVY. JPMorgan Chase & Co. lowered Avery Dennison Corp. from an “overweight” rating to a “neutral” rating and set a $78.00 target price on the stock. in a report on Thursday, May 26th. Bank of America Corp. lowered Avery Dennison Corp. from a “buy” rating to an “underperform” rating and set a $75.00 target price on the stock. in a report on Friday, July 1st. One equities research analyst has rated the stock with a sell rating, three have issued a hold rating and two have issued a buy rating to the company’s stock. The stock has a consensus rating of “Hold” and a consensus target price of $78.14.
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Avery Dennison Corp. (NYSE:AVY) traded up 0.471% during trading on Tuesday, reaching $77.815. The company’s stock had a trading volume of 350,604 shares. The company’s 50-day moving average is $77.48 and its 200-day moving average is $74.46. Avery Dennison Corp. has a 1-year low of $55.29 and a 1-year high of $79.27. The company has a market capitalization of $6.91 billion, a P/E ratio of 23.194 and a beta of 1.01.
Avery Dennison Corp. (NYSE:AVY) last posted its earnings results on Tuesday, July 26th. The company reported $1.09 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $1.01 by $0.08. The company had revenue of $1.54 billion for the quarter, compared to analyst estimates of $1.54 billion. Avery Dennison Corp. had a return on equity of 34.82% and a net margin of 5.18%. Avery Dennison Corp.’s revenue was up 1.7% compared to the same quarter last year. During the same quarter in the prior year, the company earned $0.91 earnings per share. Equities analysts anticipate that Avery Dennison Corp. will post $3.94 EPS for the current year.
The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 21st. Investors of record on Wednesday, September 7th will be paid a dividend of $0.41 per share. This represents a $1.64 dividend on an annualized basis and a dividend yield of 2.12%. The ex-dividend date of this dividend is Friday, September 2nd. Avery Dennison Corp.’s payout ratio is currently 48.81%.
In related news, VP Susan C. Miller sold 2,000 shares of the stock in a transaction dated Thursday, September 1st. The stock was sold at an average price of $77.56, for a total transaction of $155,120.00. Following the transaction, the vice president now directly owns 8,518 shares in the company, valued at $660,656.08. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, insider Dean A. Scarborough sold 130,000 shares of the stock in a transaction dated Wednesday, August 3rd. The stock was sold at an average price of $77.05, for a total value of $10,016,500.00. Following the transaction, the insider now owns 261,066 shares in the company, valued at $20,115,135.30. The disclosure for this sale can be found here. Corporate insiders own 2.70% of the company’s stock.
A number of institutional investors have recently added to or reduced their stakes in AVY. Springbok Capital Management LLC acquired a new position in Avery Dennison Corp. during the first quarter valued at $136,000. Financial Architects Inc purchased a new position in Avery Dennison Corp. during the second quarter worth approximately $169,000. Whittier Trust Co. increased its position in Avery Dennison Corp. by 21.5% in the second quarter. Whittier Trust Co. now owns 2,357 shares of the company’s stock worth $176,000 after buying an additional 417 shares during the period. Creative Planning increased its position in Avery Dennison Corp. by 62.0% in the second quarter. Creative Planning now owns 2,578 shares of the company’s stock worth $193,000 after buying an additional 987 shares during the period. Finally, Veritable L.P. purchased a new position in Avery Dennison Corp. during the second quarter worth approximately $206,000. Hedge funds and other institutional investors own 89.65% of the company’s stock.
Avery Dennison Corp. Company Profile
Avery Dennison Corporation (Avery Dennison) is engaged in the production of pressure-sensitive materials and a range of tickets, tags, labels and other converted products. The Company’s pressure-sensitive materials are sold to label printers and converters that convert the materials into labels and other products through embossing, printing, stamping and die-cutting.
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