Zacks Investment Research Downgrades Silgan (SLGN) to Sell
Silgan (NASDAQ:SLGN) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research note issued on Thursday.
According to Zacks, “Silgan narrowed its full-year 2017 adjusted earnings per share guidance backed by higher anticipated resin cost in the fourth quarter due to recent hurricanes. Further, expenses related to its rationalization plans will thwart the company’s earnings in the near future. In addition, increase in debt and unfavorable foreign currency translation will also likely hurt the company’s performance. Its estimates have been going down over the past 90 days. Moreover, Silgan has underperformed the industry in the past year.”
Several other equities research analysts have also issued reports on SLGN. KeyCorp reiterated a “hold” rating on shares of Silgan in a research report on Thursday, October 12th. JPMorgan Chase & Co. lowered shares of Silgan from a “neutral” rating to an “underweight” rating and set a $30.00 target price for the company. in a research report on Wednesday. Bank of America lowered shares of Silgan from a “neutral” rating to an “underperform” rating in a research report on Tuesday, January 2nd. Robert W. Baird reiterated a “hold” rating and set a $32.00 target price on shares of Silgan in a research report on Friday, October 27th. Finally, BMO Capital Markets reiterated a “buy” rating and set a $34.00 target price on shares of Silgan in a research report on Monday, November 20th. Six equities research analysts have rated the stock with a sell rating, five have assigned a hold rating and one has assigned a buy rating to the company’s stock. The company presently has a consensus rating of “Hold” and a consensus price target of $30.90.
Silgan (NASDAQ:SLGN) last released its quarterly earnings data on Wednesday, October 25th. The industrial products company reported $0.66 EPS for the quarter, missing analysts’ consensus estimates of $0.69 by ($0.03). Silgan had a net margin of 3.77% and a return on equity of 32.87%. The firm had revenue of $1.27 billion during the quarter, compared to the consensus estimate of $1.28 billion. During the same quarter last year, the business posted $0.61 earnings per share. Silgan’s revenue was up 11.2% compared to the same quarter last year. analysts anticipate that Silgan will post 1.64 EPS for the current fiscal year.
In other Silgan news, Director William C. Jennings sold 25,642 shares of Silgan stock in a transaction that occurred on Tuesday, November 28th. The shares were sold at an average price of $28.38, for a total transaction of $727,719.96. Following the transaction, the director now directly owns 42,180 shares of the company’s stock, valued at $1,197,068.40. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Company insiders own 33.10% of the company’s stock.
Hedge funds have recently bought and sold shares of the business. FMR LLC increased its stake in shares of Silgan by 98.3% in the second quarter. FMR LLC now owns 13,086,272 shares of the industrial products company’s stock worth $415,881,000 after buying an additional 6,485,884 shares during the period. JPMorgan Chase & Co. boosted its position in shares of Silgan by 102.2% in the 2nd quarter. JPMorgan Chase & Co. now owns 7,792,959 shares of the industrial products company’s stock valued at $247,661,000 after purchasing an additional 3,939,145 shares during the period. Vanguard Group Inc. boosted its position in shares of Silgan by 92.5% in the 2nd quarter. Vanguard Group Inc. now owns 7,542,961 shares of the industrial products company’s stock valued at $239,715,000 after purchasing an additional 3,624,183 shares during the period. BlackRock Inc. boosted its position in shares of Silgan by 107.4% in the 2nd quarter. BlackRock Inc. now owns 6,637,734 shares of the industrial products company’s stock valued at $210,947,000 after purchasing an additional 3,437,477 shares during the period. Finally, State Street Corp boosted its position in shares of Silgan by 107.8% in the 2nd quarter. State Street Corp now owns 2,006,227 shares of the industrial products company’s stock valued at $63,762,000 after purchasing an additional 1,040,766 shares during the period. 66.62% of the stock is currently owned by hedge funds and other institutional investors.
Silgan Holdings Inc is a holding company. The Company is a manufacturer of rigid packaging for consumer goods products. The Company operates in three business segments: metal containers, closures and plastic containers. Its metal container segment is engaged in the manufacture and sale of steel and aluminum containers for human and pet food and general line products.
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