Newell Brands (NYSE:NWL)‘s stock had its “hold” rating reaffirmed by research analysts at Wells Fargo & Co in a report released on Thursday. They presently have a $25.00 price target on the stock. Wells Fargo & Co’s price target would indicate a potential downside of 9.16% from the stock’s current price.
The analysts wrote, “We recommend investors hold the stock but refrain from adding new money at this time since we see limited positive catalysts given: (1) Ongoing uncertainty surrounding who is going to run the company? Polk or Starboard/Jarden with likely disruptions regardless of the outcome; (2) Limited upside potential from Q4 results & CAGNY presentation given Q4 pre-announcement and mgmt’s diminished credibility; (3) Difficult fundamentals (tough topline comps for Elmer’s in 1H18 based on our analysis, continued retailer destocking pressures, Toys ‘R Us bankruptcy, slow category growth, etc); and (4) Limited return of capital to shareholders in the n.t. given high leverage. Bottom line – Despite what appears to be a relatively cheap valuation for NWL, we are incrementally more negative/cautious on the stock given likely disruptions, continued uncertainty and pressures on fundamentals. As such, we expect the stock could be range bound in the n.t.””
A number of other research analysts have also recently commented on NWL. Jefferies Group restated a “hold” rating and set a $47.00 price target on shares of Newell Brands in a research note on Thursday, October 19th. Oppenheimer restated a “hold” rating and set a $42.00 price target on shares of Newell Brands in a research note on Tuesday, October 31st. JPMorgan Chase & Co. cut Newell Brands from an “overweight” rating to a “neutral” rating and upped their price target for the stock from $56.00 to $63.00 in a research note on Thursday, November 2nd. Royal Bank of Canada cut Newell Brands from a “top pick” rating to an “outperform” rating and decreased their price target for the stock from $60.00 to $35.00 in a research note on Friday, November 3rd. Finally, Raymond James Financial restated a “market perform” rating on shares of Newell Brands in a research note on Friday, November 3rd. Two analysts have rated the stock with a sell rating, thirteen have assigned a hold rating and six have assigned a buy rating to the stock. The company currently has a consensus rating of “Hold” and an average price target of $37.71.
Newell Brands announced that its Board of Directors has initiated a stock repurchase plan on Thursday, November 2nd that authorizes the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization authorizes the company to repurchase shares of its stock through open market purchases. Stock repurchase plans are usually an indication that the company’s management believes its shares are undervalued.
In related news, CEO Michael B. Polk acquired 7,000 shares of Newell Brands stock in a transaction dated Monday, November 20th. The shares were acquired at an average cost of $28.22 per share, for a total transaction of $197,540.00. Following the completion of the purchase, the chief executive officer now owns 616,296 shares in the company, valued at $17,391,873.12. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. 0.97% of the stock is currently owned by company insiders.
Several hedge funds and other institutional investors have recently made changes to their positions in the company. Parkside Investments LLC purchased a new position in Newell Brands in the third quarter valued at $107,000. MUFG Americas Holdings Corp increased its holdings in Newell Brands by 566.7% in the fourth quarter. MUFG Americas Holdings Corp now owns 3,380 shares of the company’s stock valued at $104,000 after buying an additional 2,873 shares during the last quarter. WINTON GROUP Ltd purchased a new position in Newell Brands in the second quarter valued at $202,000. Cerebellum GP LLC purchased a new position in Newell Brands in the fourth quarter valued at $123,000. Finally, Cetera Investment Advisers purchased a new position in Newell Brands in the second quarter valued at $263,000. Institutional investors and hedge funds own 91.23% of the company’s stock.
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Newell Brands Company Profile
Newell Brands Inc is a marketer of consumer and commercial products. The Company’s segments include Writing, Home Solutions, Commercial Products, Baby & Parenting, Branded Consumables, Consumer Solutions, Outdoor Solutions and Process Solutions. Its products are marketed under a portfolio of brands, including Paper Mate, Sharpie, Dymo, Expo, Parker, Elmer’s, Coleman, Jostens, Marmot, Rawlings, Mr.
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