Sonoco Products Co. (SON) Downgraded by Bank of America Corp. to Underperform
Bank of America Corp. cut shares of Sonoco Products Co. (NYSE:SON) from a neutral rating to an underperform rating in a research report released on Monday. The analysts noted that the move was a valuation call.
SON has been the subject of several other research reports. Vertical Research cut shares of Sonoco Products from a hold rating to a sell rating in a research report on Friday, July 22nd. Barclays PLC upped their price objective on shares of Sonoco Products from $40.00 to $44.00 and gave the stock an underweight rating in a research report on Monday, July 25th. BMO Capital Markets reaffirmed a hold rating and set a $46.00 price objective on shares of Sonoco Products in a research report on Friday, July 22nd. Jefferies Group reaffirmed a neutral rating on shares of Sonoco Products in a research report on Friday, July 22nd. Finally, Vertical Group cut shares of Sonoco Products from a hold rating to a sell rating in a research report on Monday, July 25th. Five equities research analysts have rated the stock with a sell rating, five have issued a hold rating and two have assigned a buy rating to the company’s stock. The company currently has a consensus rating of Hold and an average price target of $46.25.
Sonoco Products (NYSE:SON) opened at 50.87 on Monday. Sonoco Products has a 1-year low of $36.56 and a 1-year high of $53.57. The company has a market cap of $5.10 billion, a price-to-earnings ratio of 24.11 and a beta of 1.01. The company’s 50-day moving average is $51.99 and its 200 day moving average is $49.45.
Sonoco Products (NYSE:SON) last posted its quarterly earnings data on Thursday, July 21st. The company reported $0.73 earnings per share for the quarter, topping the Thomson Reuters’ consensus estimate of $0.68 by $0.05. Sonoco Products had a net margin of 4.37% and a return on equity of 17.66%. The business earned $1.21 billion during the quarter, compared to analysts’ expectations of $1.26 billion. During the same quarter in the prior year, the business posted $0.68 earnings per share. Sonoco Products’s revenue was down 3.4% compared to the same quarter last year. On average, equities analysts predict that Sonoco Products will post $2.72 EPS for the current fiscal year.
The company also recently announced a quarterly dividend, which was paid on Friday, September 9th. Shareholders of record on Friday, August 12th were given a dividend of $0.37 per share. This represents a $1.48 dividend on an annualized basis and a yield of 2.91%. The ex-dividend date of this dividend was Wednesday, August 10th. Sonoco Products’s dividend payout ratio is presently 69.81%.
In other Sonoco Products news, VP Vicki B. Arthur sold 1,721 shares of the stock in a transaction that occurred on Friday, July 22nd. The shares were sold at an average price of $51.00, for a total transaction of $87,771.00. Following the completion of the sale, the vice president now owns 39,753 shares of the company’s stock, valued at approximately $2,027,403. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Mancil J. Sanders sold 16,254 shares of the stock in a transaction that occurred on Friday, August 26th. The shares were sold at an average price of $52.00, for a total transaction of $845,208.00. Following the sale, the chief executive officer now directly owns 187,296 shares of the company’s stock, valued at approximately $9,739,392. The disclosure for this sale can be found here. Company insiders own 1.90% of the company’s stock.
A number of hedge funds have recently added to or reduced their stakes in SON. Mason Street Advisors LLC purchased a new stake in Sonoco Products during the second quarter worth $2,282,000. Calvert Investment Management Inc. purchased a new stake in Sonoco Products during the second quarter worth $676,000. Schwab Charles Investment Management Inc. increased its stake in Sonoco Products by 6.9% in the second quarter. Schwab Charles Investment Management Inc. now owns 481,819 shares of the company’s stock worth $23,928,000 after buying an additional 31,289 shares in the last quarter. Lowe Brockenbrough & Co. Inc. increased its stake in Sonoco Products by 1.1% in the second quarter. Lowe Brockenbrough & Co. Inc. now owns 6,495 shares of the company’s stock worth $323,000 after buying an additional 70 shares in the last quarter. Finally, Amalgamated Bank increased its stake in Sonoco Products by 10.8% in the second quarter. Amalgamated Bank now owns 13,519 shares of the company’s stock worth $695,000 after buying an additional 1,322 shares in the last quarter. 68.99% of the stock is owned by institutional investors and hedge funds.
Sonoco Products Company Profile
Sonoco Products Company (Sonoco) is a manufacturer of industrial and consumer packaging products and a provider of packaging services. The Company operates in four segments: Consumer Packaging, Paper and Industrial Converted Products, Display and Packaging, and Protective Solutions. Its Consumer Packaging segment’s products and services include round composite cans, aluminum, steel and peelable membrane easy-open closures for composite and metal cans; plastic bottles, cups and trays, and printed flexible packaging and global brand management.
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