Zacks Investment Research Lowers Avery Dennison Corporation (AVY) to Sell
Avery Dennison Corporation (NYSE:AVY) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research report issued on Tuesday.
According to Zacks, “For 2017, Avery Dennison expects earnings per share to lie in the range of $4.75–$4.90. The midpoint of the guidance range reflects a year-over-year growth of 20%. The company anticipates reported sales growth in the range of 7–8% for the full year, reflecting the impact of the Yongle and Finesse acquisitions and a smaller currency headwind. Its shares have underperformed the industry year to date. Its estimates have gone down lately. Transition costs related to acquisitions and raw material inflation remain headwinds for Avery Dennison's results in the near term. Following the Yongle and Finesse acquisitions, Avery Dennison’s net debt-to-EBITDA ratio has gone up closer to the high end of its target range.”
A number of other research analysts have also issued reports on the company. Citigroup Inc. boosted their target price on Avery Dennison Corporation from $106.00 to $108.00 and gave the company a “buy” rating in a report on Wednesday, July 26th. Robert W. Baird reissued a “buy” rating and issued a $100.00 target price on shares of Avery Dennison Corporation in a report on Friday, September 1st. Bank of America Corporation raised Avery Dennison Corporation from a “neutral” rating to a “buy” rating and boosted their target price for the company from $90.00 to $96.00 in a report on Tuesday, June 20th. BidaskClub raised Avery Dennison Corporation from a “buy” rating to a “strong-buy” rating in a report on Wednesday, June 28th. Finally, KeyCorp reissued a “hold” rating on shares of Avery Dennison Corporation in a report on Friday, September 22nd. One research analyst has rated the stock with a sell rating, three have given a hold rating, five have assigned a buy rating and one has issued a strong buy rating to the company. The stock currently has a consensus rating of “Buy” and an average target price of $93.14.
Shares of Avery Dennison Corporation (NYSE:AVY) traded down 0.768% during midday trading on Tuesday, hitting $101.395. 209,639 shares of the stock were exchanged. The company has a market cap of $8.96 billion, a price-to-earnings ratio of 23.818 and a beta of 1.19. Avery Dennison Corporation has a one year low of $68.55 and a one year high of $102.55. The firm has a 50 day moving average of $97.47 and a 200-day moving average of $89.61.
Avery Dennison Corporation (NYSE:AVY) last released its earnings results on Tuesday, July 25th. The industrial products company reported $1.31 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $1.21 by $0.10. The business had revenue of $1.63 billion for the quarter, compared to analyst estimates of $1.61 billion. Avery Dennison Corporation had a return on equity of 39.29% and a net margin of 6.14%. The company’s revenue for the quarter was up 5.7% compared to the same quarter last year. During the same quarter in the previous year, the company posted $1.09 earnings per share. Equities analysts expect that Avery Dennison Corporation will post $4.83 EPS for the current year.
In other Avery Dennison Corporation news, Director David E. I. Pyott sold 2,000 shares of the business’s stock in a transaction on Wednesday, August 30th. The stock was sold at an average price of $94.00, for a total transaction of $188,000.00. Following the sale, the director now directly owns 16,601 shares in the company, valued at $1,560,494. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, Director David E. I. Pyott sold 298 shares of the business’s stock in a transaction on Monday, August 28th. The stock was sold at an average price of $94.00, for a total value of $28,012.00. Following the sale, the director now owns 16,601 shares in the company, valued at $1,560,494. The disclosure for this sale can be found here. Insiders have sold 12,298 shares of company stock worth $1,152,312 in the last ninety days. 1.40% of the stock is currently owned by corporate insiders.
A number of institutional investors and hedge funds have recently bought and sold shares of AVY. BlackRock Inc. boosted its position in Avery Dennison Corporation by 3,215.2% during the first quarter. BlackRock Inc. now owns 6,908,540 shares of the industrial products company’s stock worth $556,829,000 after purchasing an additional 6,700,152 shares in the last quarter. Principal Financial Group Inc. boosted its position in Avery Dennison Corporation by 110.5% during the second quarter. Principal Financial Group Inc. now owns 1,759,374 shares of the industrial products company’s stock worth $155,476,000 after purchasing an additional 923,548 shares in the last quarter. Congress Asset Management Co. MA purchased a new stake in Avery Dennison Corporation during the second quarter worth $71,964,000. Victory Capital Management Inc. boosted its position in Avery Dennison Corporation by 21.3% during the second quarter. Victory Capital Management Inc. now owns 1,937,495 shares of the industrial products company’s stock worth $171,216,000 after purchasing an additional 340,139 shares in the last quarter. Finally, Marshall Wace North America L.P. boosted its position in Avery Dennison Corporation by 67.9% during the second quarter. Marshall Wace North America L.P. now owns 648,482 shares of the industrial products company’s stock worth $57,067,000 after purchasing an additional 262,211 shares in the last quarter. Institutional investors own 86.51% of the company’s stock.
About Avery Dennison Corporation
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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