Silgan Holdings Inc. (SLGN) Lowered to Sell at Zacks Investment Research
According to Zacks, “For 2016, Silgan trimmed its earnings per share guidance to $2.70–$2.90. The mid-point depicts a 6% year over year dip, reflecting lower demand from certain U.S. pack customers, a cool and wet start to the European growing season and a somewhat more measured pace of equipment relocations associated with the footprint optimization program in the plastic container business. For the third quarter, Silgan guides earnings in the range of $1.20–$1.30, reflecting a 1% dip at the mid-point year over year. Further, incremental costs from its footprint optimization programs, high debt and foreign exchange volatility remain concerns.”
Several other equities research analysts have also recently commented on the company. Wells Fargo & Co. cut Silgan Holdings from an outperform rating to a market perform rating in a research note on Thursday, July 28th. BMO Capital Markets lowered Silgan Holdings from an outperform rating to a market perform rating and lowered their price target for the stock from $58.00 to $47.00 in a research report on Wednesday, June 8th. Citigroup Inc. lowered their price target on Silgan Holdings from $55.00 to $54.00 and set a neutral rating on the stock in a research report on Tuesday, August 2nd. Goldman Sachs Group Inc. reaffirmed a neutral rating and set a $53.00 price target on shares of Silgan Holdings in a research report on Wednesday, June 1st. Finally, JPMorgan Chase & Co. started coverage on Silgan Holdings in a research report on Tuesday, September 13th. They set a neutral rating and a $51.00 price target on the stock. Two equities research analysts have rated the stock with a sell rating, eight have given a hold rating and two have issued a buy rating to the stock. The company presently has an average rating of Hold and a consensus price target of $52.33.
Shares of Silgan Holdings (NASDAQ:SLGN) traded down 0.10% during trading on Tuesday, reaching $50.04. The company’s stock had a trading volume of 9,736 shares. The company has a market cap of $3.03 billion, a PE ratio of 19.45 and a beta of 0.54. Silgan Holdings has a 52 week low of $47.00 and a 52 week high of $56.06. The stock’s 50 day moving average price is $48.82 and its 200 day moving average price is $50.84.
Silgan Holdings (NASDAQ:SLGN) last released its earnings results on Wednesday, July 27th. The company reported $0.60 EPS for the quarter, beating the Thomson Reuters’ consensus estimate of $0.56 by $0.04. The firm had revenue of $874.60 million for the quarter, compared to analysts’ expectations of $895.15 million. Silgan Holdings had a return on equity of 25.69% and a net margin of 4.23%. The business’s quarterly revenue was down 4.3% compared to the same quarter last year. During the same quarter in the previous year, the business posted $0.71 EPS. Equities research analysts predict that Silgan Holdings will post $2.80 EPS for the current year.
The business also recently announced a quarterly dividend, which was paid on Thursday, September 15th. Stockholders of record on Thursday, September 1st were given a dividend of $0.17 per share. The ex-dividend date was Tuesday, August 30th. This represents a $0.68 dividend on an annualized basis and a dividend yield of 1.36%. Silgan Holdings’s payout ratio is 26.25%.
In other news, VP Anthony P. Andreacchi sold 1,221 shares of the company’s stock in a transaction on Tuesday, August 30th. The stock was sold at an average price of $48.48, for a total transaction of $59,194.08. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, VP B Frederik Prinzen sold 1,000 shares of the company’s stock in a transaction on Thursday, August 18th. The shares were sold at an average price of $48.05, for a total value of $48,050.00. The disclosure for this sale can be found here. Insiders own 32.94% of the company’s stock.
Several hedge funds have recently added to or reduced their stakes in the stock. Norges Bank acquired a new stake in shares of Silgan Holdings during the fourth quarter valued at $33,681,000. Prudential Financial Inc. increased its stake in shares of Silgan Holdings by 366.9% in the first quarter. Prudential Financial Inc. now owns 115,000 shares of the company’s stock valued at $6,115,000 after buying an additional 90,370 shares in the last quarter. BlackRock Inc. increased its stake in shares of Silgan Holdings by 21.3% in the first quarter. BlackRock Inc. now owns 18,293 shares of the company’s stock valued at $973,000 after buying an additional 3,208 shares in the last quarter. BlackRock Group LTD increased its stake in shares of Silgan Holdings by 28.3% in the first quarter. BlackRock Group LTD now owns 25,843 shares of the company’s stock valued at $1,374,000 after buying an additional 5,705 shares in the last quarter. Finally, BlackRock Institutional Trust Company N.A. increased its stake in shares of Silgan Holdings by 10.1% in the first quarter. BlackRock Institutional Trust Company N.A. now owns 1,306,256 shares of the company’s stock valued at $69,454,000 after buying an additional 120,284 shares in the last quarter. Hedge funds and other institutional investors own 68.85% of the company’s stock.
About Silgan Holdings
Silgan Holdings Inc (Silgan) is a manufacturer of rigid packaging for shelf-stable food and other consumer goods products. The Company operates through three segments: metal container, closures and plastic container. The Company’s products include steel and aluminum containers for human and pet food and general line products; metal, composite and plastic closures for food and beverage products, and custom designed plastic containers and closures for personal care, food, healthcare, pharmaceutical, household and industrial chemical, pet care, agricultural, automotive and marine chemical products.
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