Zacks Investment Research Downgrades Avery Dennison Corporation (AVY) to Sell

Zacks Investment Research downgraded shares of Avery Dennison Corporation (NYSE:AVY) from a hold rating to a sell rating in a report issued on Tuesday, October 17th.

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.”

Other equities analysts have also recently issued reports about the company. Loop Capital began coverage on Avery Dennison Corporation in a report on Thursday, September 28th. They issued a hold rating and a $99.00 price objective for the company. KeyCorp reaffirmed a hold rating on shares of Avery Dennison Corporation in a report on Friday, September 22nd. Robert W. Baird reaffirmed a buy rating and issued a $100.00 target price on shares of Avery Dennison Corporation in a report on Friday, September 1st. Citigroup Inc. upped their target price on Avery Dennison Corporation from $106.00 to $108.00 and gave the stock a buy rating in a report on Wednesday, July 26th. Finally, BidaskClub raised Avery Dennison Corporation from a buy rating to a strong-buy rating in a report on Wednesday, June 28th. Four equities research analysts have rated the stock with a hold rating, five have given a buy rating and one has given a strong buy rating to the company. Avery Dennison Corporation presently has a consensus rating of Buy and an average target price of $98.88.

Avery Dennison Corporation (AVY) traded up 0.45% during trading on Tuesday, reaching $105.33. 262,873 shares of the company’s stock traded hands. The stock has a market capitalization of $9.31 billion, a P/E ratio of 24.74 and a beta of 1.19. The company has a 50-day moving average of $98.72 and a 200 day moving average of $90.71. Avery Dennison Corporation has a 12 month low of $68.55 and a 12 month high of $105.44.

Avery Dennison Corporation (NYSE:AVY) last issued its earnings results on Wednesday, October 25th. The industrial products company reported $1.26 EPS for the quarter, topping the Thomson Reuters’ consensus estimate of $1.21 by $0.05. The company had revenue of $1.68 billion during the quarter, compared to the consensus estimate of $1.65 billion. Avery Dennison Corporation had a return on equity of 40.49% and a net margin of 6.27%. The firm’s revenue for the quarter was up 11.3% compared to the same quarter last year. During the same period in the previous year, the company posted $1.01 EPS. On average, equities research analysts expect that Avery Dennison Corporation will post $4.83 earnings per share for the current fiscal year.

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The company also recently declared a quarterly dividend, which will be paid on Wednesday, December 20th. Investors of record on Wednesday, December 6th will be paid a dividend of $0.45 per share. This represents a $1.80 dividend on an annualized basis and a yield of 1.72%. Avery Dennison Corporation’s dividend payout ratio (DPR) is currently 40.18%.

In related news, Director David E. I. Pyott sold 298 shares of the stock in a transaction that occurred on Monday, August 28th. The stock was sold at an average price of $94.00, for a total transaction of $28,012.00. Following the completion of the sale, the director now directly owns 16,601 shares of the company’s stock, valued at $1,560,494. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Patrick Siewert sold 10,000 shares of the stock in a transaction that occurred on Thursday, August 3rd. The shares were sold at an average price of $93.63, for a total value of $936,300.00. Following the sale, the director now directly owns 10,519 shares of the company’s stock, valued at $984,893.97. The disclosure for this sale can be found here. Over the last three months, insiders sold 12,298 shares of company stock valued at $1,152,312. Company insiders own 1.40% of the company’s stock.

A number of hedge funds and other institutional investors have recently made changes to their positions in AVY. BlackRock Inc. grew its holdings 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 valued at $556,829,000 after purchasing an additional 6,700,152 shares during the period. Principal Financial Group Inc. boosted its holdings in shares of Avery Dennison Corporation by 110.5% in 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 acquiring an additional 923,548 shares during the period. Congress Asset Management Co. MA bought a new position in shares of Avery Dennison Corporation in the second quarter worth $71,964,000. Victory Capital Management Inc. boosted its holdings in shares of Avery Dennison Corporation by 21.3% in 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 acquiring an additional 340,139 shares during the period. Finally, Marshall Wace North America L.P. boosted its holdings in shares of Avery Dennison Corporation by 67.9% in 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 acquiring an additional 262,211 shares during the period. 86.54% of the stock is owned by institutional investors and hedge funds.

Avery Dennison Corporation Company Profile

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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Analyst Recommendations for Avery Dennison Corporation (NYSE:AVY)

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