Sonoco Products (NYSE:SON) Shares Gap Up on Better-Than-Expected Earnings

Shares of Sonoco Products Company (NYSE:SON) gapped up before the market opened 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 trading hands.

The industrial products company reported $1.51 EPS for the quarter, topping analysts’ consensus estimates of $1.47 by $0.04. Sonoco Products had a return on equity of 16.50% and a net margin of 13.57%.The business had revenue of $1.89 billion during the quarter, compared to the consensus estimate of $1.88 billion. During the same period in the prior year, the firm posted $1.37 EPS. The business’s revenue for the quarter was down 1.3% on a year-over-year basis. Sonoco Products has set its FY 2026 guidance at 5.800-6.200 EPS.

Sonoco Products Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, September 10th. Shareholders of record on Monday, August 10th will be paid a dividend of $0.54 per share. This represents a $2.16 dividend on an annualized basis and a yield of 3.8%. The ex-dividend date of this dividend is Monday, August 10th. Sonoco Products’s dividend payout ratio (DPR) is presently 21.18%.

Analysts Set New Price Targets

Several research analysts have weighed in on the company. Deutsche Bank Aktiengesellschaft initiated coverage on Sonoco Products in a research report on Wednesday, April 1st. They issued a “buy” rating and a $63.00 target price on the stock. Robert W. Baird reduced their price objective on shares of Sonoco Products from $60.00 to $55.00 and set a “neutral” rating for the company in a research note on Thursday, April 23rd. Weiss Ratings cut Sonoco Products from a “hold (c+)” rating to a “hold (c)” rating in a research report on Monday. Bank of America raised their price target on Sonoco Products from $65.00 to $69.00 and gave the stock a “buy” rating in a research report on Tuesday, July 14th. Finally, Wall Street Zen cut shares of Sonoco Products from a “buy” rating to a “hold” rating in a report on Saturday, May 2nd. Five research analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the stock. According to data from MarketBeat, the stock has a consensus rating of “Hold” and a consensus target price of $61.33.

Insider Buying and Selling at Sonoco Products

In other Sonoco Products news, CFO Paul Joachimczyk purchased 8,058 shares of the company’s stock in a transaction that occurred on Friday, April 24th. The shares were acquired at an average cost of $49.64 per share, for a total transaction of $399,999.12. Following the completion of the acquisition, the chief financial officer owned 28,558 shares of the company’s stock, valued at $1,417,619.12. The trade was a 39.31% increase in their position. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. Also, insider James A. Harrell III acquired 6,753 shares of Sonoco Products stock in a transaction on Monday, April 27th. The stock was acquired at an average price of $50.37 per share, with a total value of $340,148.61. Following the purchase, the insider directly owned 10,070 shares in the company, valued at approximately $507,225.90. This trade represents a 203.59% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. Corporate insiders own 0.98% of the company’s stock.

Institutional Trading of Sonoco Products

Large investors have recently added to or reduced their stakes in the stock. Baker Ellis Asset Management LLC lifted its stake in shares of Sonoco Products by 3.9% during the 1st quarter. Baker Ellis Asset Management LLC now owns 5,307 shares of the industrial products company’s stock valued at $287,000 after buying an additional 201 shares in the last quarter. Powell Investment Advisors LLC boosted its stake in shares of Sonoco Products by 1.0% in the fourth quarter. Powell Investment Advisors LLC now owns 20,718 shares of the industrial products company’s stock worth $904,000 after acquiring an additional 203 shares during the period. IFP Advisors Inc grew its position in shares of Sonoco Products by 8.6% during the fourth quarter. IFP Advisors Inc now owns 2,996 shares of the industrial products company’s stock worth $131,000 after purchasing an additional 237 shares in the last quarter. EverSource Wealth Advisors LLC raised its stake in Sonoco Products by 11.2% during the 1st quarter. EverSource Wealth Advisors LLC now owns 2,476 shares of the industrial products company’s stock valued at $134,000 after purchasing an additional 249 shares during the period. Finally, SBI Securities Co. Ltd. lifted its holdings in shares of Sonoco Products by 77.7% in the fourth quarter. SBI Securities Co. Ltd. now owns 590 shares of the industrial products company’s stock worth $26,000 after buying an additional 258 shares in the last quarter. Hedge funds and other institutional investors own 77.69% of the company’s stock.

Sonoco Products Price Performance

The firm has a market cap of $5.61 billion, a P/E ratio of 5.56, a P/E/G ratio of 1.19 and a beta of 0.37. The firm’s fifty day simple moving average is $51.79 and its 200 day simple moving average is $51.88. The company has a debt-to-equity ratio of 0.97, a quick ratio of 0.54 and a current ratio of 0.96.

About Sonoco Products

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.