Sonoco Products (NYSE:SON) Shares Gap Up on Earnings Beat

Sonoco Products Company (NYSE:SON)’s share price gapped up prior to trading on Thursday after the company announced better than expected quarterly earnings. The stock had previously closed at $55.15, but opened at $57.66. Sonoco Products shares last traded at $56.7370, with a volume of 327,445 shares traded.

The industrial products company reported $1.51 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.47 by $0.04. The business had revenue of $1.89 billion during the quarter, compared to the consensus estimate of $1.88 billion. Sonoco Products had a return on equity of 16.50% and a net margin of 8.41%.Sonoco Products’s revenue was down 1.3% compared to the same quarter last year. During the same quarter in the prior year, the company posted $1.37 earnings per share. Sonoco Products has set its FY 2026 guidance at 5.800-6.200 EPS.

Sonoco Products Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, September 10th. Shareholders of record on Monday, August 10th will be given a $0.54 dividend. This represents a $2.16 dividend on an annualized basis and a yield of 3.7%. The ex-dividend date of this dividend is Monday, August 10th. Sonoco Products’s dividend payout ratio is presently 21.18%.

Wall Street Analysts Forecast Growth

Several equities research analysts have commented on SON shares. Citigroup increased their price objective on shares of Sonoco Products from $63.00 to $66.00 and gave the company a “buy” rating in a research note on Thursday, July 9th. Robert W. Baird reduced their target price on Sonoco Products from $60.00 to $55.00 and set a “neutral” rating for the company in a report on Thursday, April 23rd. Weiss Ratings downgraded Sonoco Products from a “hold (c+)” rating to a “hold (c)” rating in a research report on Monday. Deutsche Bank Aktiengesellschaft began coverage on Sonoco Products in a report on Wednesday, April 1st. They set a “buy” rating and a $63.00 price target on the stock. Finally, Argus raised Sonoco Products to a “hold” rating in a research report on Monday, April 20th. Five investment analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock presently has an average rating of “Hold” and a consensus target price of $61.78.

Insider Buying and Selling

In related news, insider James A. Harrell III acquired 6,753 shares of the stock in a transaction on Monday, April 27th. The shares were acquired at an average price of $50.37 per share, with a total value of $340,148.61. Following the completion of the transaction, the insider owned 10,070 shares in the company, valued at approximately $507,225.90. The trade was a 203.59% increase in their position. The purchase was disclosed in a legal filing with the SEC, which is accessible through this link. Corporate insiders own 0.98% of the company’s stock.

Institutional Investors Weigh In On Sonoco Products

A number of hedge funds have recently modified their holdings of the stock. Wasatch Advisors LP raised its holdings in shares of Sonoco Products by 15.9% in the 2nd quarter. Wasatch Advisors LP now owns 81,167 shares of the industrial products company’s stock worth $4,574,000 after purchasing an additional 11,130 shares during the period. Evanson Financial LLC bought a new position in Sonoco Products during the second quarter valued at $165,000. Hilltop National Bank increased its position in Sonoco Products by 49.7% in the second quarter. Hilltop National Bank now owns 1,777 shares of the industrial products company’s stock worth $100,000 after buying an additional 590 shares during the last quarter. Access Investment Management LLC increased its position in Sonoco Products by 11.5% in the first quarter. Access Investment Management LLC now owns 289,855 shares of the industrial products company’s stock worth $15,678,000 after buying an additional 29,980 shares during the last quarter. Finally, Bank of America Corp DE raised its stake in shares of Sonoco Products by 19.0% in the first quarter. Bank of America Corp DE now owns 3,312,638 shares of the industrial products company’s stock valued at $179,181,000 after buying an additional 528,292 shares during the period. Institutional investors own 77.69% of the company’s stock.

Sonoco Products Price Performance

The company has a current ratio of 0.99, a quick ratio of 0.54 and a debt-to-equity ratio of 0.97. The business has a 50-day moving average price of $52.16 and a 200 day moving average price of $52.01. The stock has a market cap of $5.76 billion, a PE ratio of 9.26, a PEG ratio of 1.22 and a beta of 0.37.

Sonoco Products Company Profile

Sonoco Products Company (NYSE: SON) is a global provider of diversified packaging solutions, serving a wide range of consumer, industrial and retail markets. The company offers a broad portfolio that includes rigid paper and plastic containers, flexible packaging, industrial core and tube products, thermoformed plastics, retail point-of-purchase displays, and packaging supply chain services. Through its solutions, Sonoco helps customers in food and beverage, personal care, chemicals, healthcare, home and garden, and electronics industries address their packaging needs, improve product shelf appeal, and optimize logistics efficiency.

With operations in more than 30 countries across North America, South America, Europe, Asia and Africa, Sonoco leverages a global network of manufacturing facilities, recycling centers and distribution channels to meet the demands of multinational and regional customers.