Zacks Investment Research Lowers Avery Dennison Corp (AVY) to Hold
Avery Dennison Corp (NYSE:AVY) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report released on Friday.
According to Zacks, “Avery Dennison’s first-quarter earnings and revenues both improved on a year-over-year basis and also beat the Zacks Consensus Estimate on both counts. For 2017, the company hiked adjusted earnings per share guidance to a range of $4.50–$4.65, reflecting a stronger operating outlook and a lower tax rate. Its consistent execution of strategies continues to enhance competitive advantage while driving profitable growth. Consistent focus on productivity, cost control and share repurchases will also drive results. The company’s shares have been outperforming the Zacks categorized Office Supplies & Forms sub industry year to date. However, choppy growth in Radio Frequency Identification products and raw material inflation remain near term concerns.”
AVY has been the subject of a number of other research reports. KeyCorp reiterated a “hold” rating on shares of Avery Dennison Corp in a research note on Wednesday, April 26th. Barclays PLC reiterated an “overweight” rating and issued a $96.00 price target (up previously from $95.00) on shares of Avery Dennison Corp in a research note on Monday, May 1st. Four investment analysts have rated the stock with a hold rating and three have given a buy rating to the stock. The stock presently has a consensus rating of “Hold” and an average target price of $82.60.
Avery Dennison Corp (NYSE:AVY) traded up 0.32% during midday trading on Friday, reaching $82.76. The company had a trading volume of 721,058 shares. Avery Dennison Corp has a 52 week low of $68.55 and a 52 week high of $84.57. The company has a market capitalization of $7.33 billion, a price-to-earnings ratio of 21.73 and a beta of 1.12. The firm has a 50-day moving average price of $82.10 and a 200-day moving average price of $76.87.
Avery Dennison Corp (NYSE:AVY) last issued its quarterly earnings results on Wednesday, April 26th. The industrial products company reported $1.11 earnings per share (EPS) for the quarter, topping the Zacks’ consensus estimate of $1.04 by $0.07. Avery Dennison Corp had a return on equity of 37.46% and a net margin of 5.27%. The business had revenue of $1.57 billion during the quarter, compared to analyst estimates of $1.53 billion. During the same quarter in the prior year, the business posted $0.94 EPS. Avery Dennison Corp’s revenue for the quarter was up 5.8% compared to the same quarter last year. Analysts expect that Avery Dennison Corp will post $4.60 EPS for the current fiscal year.
The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, June 21st. Stockholders of record on Wednesday, June 7th will be given a dividend of $0.45 per share. This is a positive change from Avery Dennison Corp’s previous quarterly dividend of $0.41. The ex-dividend date is Monday, June 5th. This represents a $1.80 dividend on an annualized basis and a dividend yield of 2.17%. Avery Dennison Corp’s dividend payout ratio (DPR) is presently 46.46%.
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In other news, Director Anthony Anderson sold 950 shares of the firm’s stock in a transaction dated Tuesday, May 16th. The stock was sold at an average price of $84.42, for a total transaction of $80,199.00. Following the completion of the transaction, the director now owns 7,492 shares in the company, valued at $632,474.64. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, insider Dean A. Scarborough sold 34,437 shares of the firm’s stock in a transaction dated Thursday, March 9th. The shares were sold at an average price of $80.02, for a total value of $2,755,648.74. Following the transaction, the insider now owns 116,300 shares of the company’s stock, valued at approximately $9,306,326. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 54,891 shares of company stock valued at $4,431,860. Company insiders own 2.70% of the company’s stock.
Hedge funds and other institutional investors have recently made changes to their positions in the stock. Hartford Investment Management Co. increased its position in shares of Avery Dennison Corp by 1.3% in the third quarter. Hartford Investment Management Co. now owns 22,304 shares of the industrial products company’s stock worth $1,735,000 after buying an additional 286 shares during the last quarter. Nomura Asset Management Co. Ltd. increased its position in shares of Avery Dennison Corp by 4.1% in the third quarter. Nomura Asset Management Co. Ltd. now owns 10,790 shares of the industrial products company’s stock worth $839,000 after buying an additional 420 shares during the last quarter. Engineers Gate Manager LP acquired a new position in shares of Avery Dennison Corp during the third quarter worth approximately $4,315,000. Municipal Employees Retirement System of Michigan increased its position in shares of Avery Dennison Corp by 0.4% in the third quarter. Municipal Employees Retirement System of Michigan now owns 2,820 shares of the industrial products company’s stock worth $219,000 after buying an additional 10 shares during the last quarter. Finally, FormulaFolio Investments LLC acquired a new position in shares of Avery Dennison Corp during the third quarter worth approximately $1,155,000. 86.43% of the stock is owned by hedge funds and other institutional investors.
About Avery Dennison Corp
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 segments include Label and Graphic Materials (LGM); Retail Branding and Information Solutions (RBIS), and Industrial and Healthcare Materials (IHM).
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