Sonoco Products (NYSE:SON) Trading Down 11.9% After Earnings Miss

Sonoco Products (NYSE:SON)’s share price was down 11.9% during mid-day trading on Wednesday after the company announced weaker than expected quarterly earnings. The company traded as low as $42.32 and last traded at $41.20. Approximately 255,626 shares changed hands during mid-day trading, a decline of 66% from the average daily volume of 751,509 shares. The stock had previously closed at $46.76.

The industrial products company reported $1.38 earnings per share for the quarter, missing the consensus estimate of $1.41 by ($0.03). The business had revenue of $1.71 billion during the quarter, compared to analyst estimates of $2.02 billion. Sonoco Products had a return on equity of 20.81% and a net margin of 2.60%. Sonoco Products’s revenue was up 30.6% compared to the same quarter last year. During the same period in the prior year, the business posted $1.12 EPS.

Sonoco Products Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, June 10th. Shareholders of record on Friday, May 9th will be issued a $0.53 dividend. This represents a $2.12 annualized dividend and a yield of 4.88%. The ex-dividend date is Friday, May 9th. This is an increase from Sonoco Products’s previous quarterly dividend of $0.52. Sonoco Products’s dividend payout ratio (DPR) is currently 128.48%.

Analyst Upgrades and Downgrades

Several equities research analysts have weighed in on SON shares. StockNews.com downgraded Sonoco Products from a “hold” rating to a “sell” rating in a report on Friday, April 25th. Jefferies Financial Group began coverage on Sonoco Products in a report on Tuesday, April 22nd. They set a “buy” rating and a $62.00 target price for the company. Raymond James decreased their target price on Sonoco Products from $54.00 to $50.00 and set an “outperform” rating for the company in a report on Tuesday, April 22nd. Citigroup decreased their target price on Sonoco Products from $59.00 to $55.00 and set a “buy” rating for the company in a report on Monday, January 6th. Finally, Wells Fargo & Company reduced their price target on Sonoco Products from $50.00 to $48.00 and set an “underweight” rating for the company in a research report on Monday, February 24th. Two investment analysts have rated the stock with a sell rating, one has given a hold rating and five have issued a buy rating to the company’s stock. According to data from MarketBeat, Sonoco Products presently has a consensus rating of “Hold” and an average price target of $56.43.

Insider Activity

In other news, Director John R. Haley purchased 3,000 shares of the stock in a transaction dated Thursday, February 27th. The shares were purchased at an average cost of $46.76 per share, with a total value of $140,280.00. Following the completion of the purchase, the director now directly owns 18,558 shares of the company’s stock, valued at approximately $867,772.08. The trade was a 19.28 % increase in their position. The transaction was disclosed in a document filed with the SEC, which is available through this link. Also, CEO R. Howard Coker purchased 20,000 shares of the stock in a transaction dated Thursday, March 13th. The stock was purchased at an average cost of $46.10 per share, for a total transaction of $922,000.00. Following the completion of the purchase, the chief executive officer now directly owns 482,365 shares of the company’s stock, valued at approximately $22,237,026.50. The trade was a 4.33 % increase in their ownership of the stock. The disclosure for this purchase can be found here. Company insiders own 0.74% of the company’s stock.

Institutional Trading of Sonoco Products

A number of institutional investors have recently made changes to their positions in SON. MTM Investment Management LLC acquired a new stake in shares of Sonoco Products in the 1st quarter worth $372,000. New York State Common Retirement Fund increased its position in Sonoco Products by 1.2% during the first quarter. New York State Common Retirement Fund now owns 340,301 shares of the industrial products company’s stock worth $16,076,000 after purchasing an additional 4,193 shares during the last quarter. State of Michigan Retirement System increased its position in Sonoco Products by 1.3% during the first quarter. State of Michigan Retirement System now owns 23,551 shares of the industrial products company’s stock worth $1,113,000 after purchasing an additional 300 shares during the last quarter. Allworth Financial LP increased its position in Sonoco Products by 152.0% during the first quarter. Allworth Financial LP now owns 1,071 shares of the industrial products company’s stock worth $50,000 after purchasing an additional 646 shares during the last quarter. Finally, Nisa Investment Advisors LLC increased its position in Sonoco Products by 43.6% during the first quarter. Nisa Investment Advisors LLC now owns 8,020 shares of the industrial products company’s stock worth $379,000 after purchasing an additional 2,435 shares during the last quarter. 77.69% of the stock is owned by institutional investors and hedge funds.

Sonoco Products Trading Up 6.0 %

The stock has a market capitalization of $4.29 billion, a price-to-earnings ratio of 26.35, a PEG ratio of 0.76 and a beta of 0.64. The company’s 50-day moving average is $45.49 and its 200-day moving average is $48.28. The company has a quick ratio of 1.91, a current ratio of 0.79 and a debt-to-equity ratio of 2.18.

Sonoco Products Company Profile

Sonoco Products Company, together with its subsidiaries, designs, develops, manufactures, and sells various engineered and sustainable packaging products in North and South America, Europe, Australia, and Asia. The company operates Consumer Packaging and Industrial Paper Packaging segments. The Consumer Packaging segment offers round and shaped rigid paper, steel, and plastic containers; metal and peelable membrane ends, closures, and components; thermoformed plastic trays and enclosures; and high-barrier flexible packaging products.