Zacks Investment Research downgraded shares of Sealed Air (NYSE:SEE) from a buy rating to a hold rating in a research report report published on Friday morning.
According to Zacks, “Sealed Air’s first-quarter 2018 adjusted earnings and revenues improved on a year-over-year basis. While earnings beat the Zacks Consensus Estimate, revenues missed the same. The company will benefit from the sale of Diversey which will help it enhance focus on Food Care and Product Care divisions. Its top-line will be supported by accelerated growth in the global protein market along with the e-Commerce sector. Innovations and acquisitions will also drive growth. For 2018, Sealed Air projects net sales of approximately $4.75-$4.80 billion and adjusted earnings per share at $2.45-$2.55, an increase of 38% at the mid-point. However, stranded costs following the Diversey sale, increasing raw material prices remain headwinds. Sealed Air continues to invest in R&D, sales and marketing. Even though these investments will drive future growth, it will affect margins in the near term.The stock has underperformed the industry over the past year.”
SEE has been the subject of several other research reports. BMO Capital Markets reaffirmed a hold rating and issued a $50.00 price target on shares of Sealed Air in a report on Thursday, January 25th. Bank of America increased their price target on Sealed Air from $48.00 to $50.00 and gave the company a buy rating in a report on Friday, May 4th. KeyCorp reaffirmed a hold rating on shares of Sealed Air in a report on Thursday, May 3rd. TheStreet cut Sealed Air from a b rating to a c rating in a report on Thursday, February 8th. Finally, Jefferies Group started coverage on Sealed Air in a report on Friday. They issued a buy rating and a $53.00 price target for the company. One analyst has rated the stock with a sell rating, six have assigned a hold rating and six have issued a buy rating to the stock. The company has a consensus rating of Hold and an average price target of $50.50.
NYSE:SEE opened at $44.54 on Friday. Sealed Air has a one year low of $40.76 and a one year high of $49.94. The company has a quick ratio of 0.77, a current ratio of 1.17 and a debt-to-equity ratio of -8.90. The company has a market capitalization of $7.15 billion, a P/E ratio of 24.61, a P/E/G ratio of 1.53 and a beta of 1.15.
Sealed Air (NYSE:SEE) last posted its quarterly earnings results on Thursday, May 3rd. The industrial products company reported $0.51 EPS for the quarter, beating the consensus estimate of $0.50 by $0.01. Sealed Air had a return on equity of 154.85% and a net margin of 14.06%. The firm had revenue of $1.13 billion during the quarter, compared to analysts’ expectations of $1.13 billion. During the same quarter last year, the firm earned $0.43 earnings per share. The business’s revenue for the quarter was up 9.6% on a year-over-year basis. equities research analysts anticipate that Sealed Air will post 2.51 earnings per share for the current year.
The firm also recently disclosed a quarterly dividend, which will be paid on Friday, June 15th. Investors of record on Friday, June 1st will be given a $0.16 dividend. The ex-dividend date is Thursday, May 31st. This represents a $0.64 annualized dividend and a yield of 1.44%. Sealed Air’s payout ratio is 35.36%.
Sealed Air declared that its Board of Directors has authorized a stock repurchase program on Thursday, May 3rd that allows the company to repurchase $1.00 billion in shares. This repurchase authorization allows the industrial products company to repurchase up to 13.7% of its stock through open market purchases. Stock repurchase programs are typically a sign that the company’s board believes its stock is undervalued.
A number of institutional investors have recently modified their holdings of the stock. Wells Fargo & Company MN grew its position in Sealed Air by 35.6% in the fourth quarter. Wells Fargo & Company MN now owns 5,950,396 shares of the industrial products company’s stock worth $293,354,000 after acquiring an additional 1,563,213 shares during the period. Jennison Associates LLC grew its position in Sealed Air by 10.7% in the fourth quarter. Jennison Associates LLC now owns 3,498,776 shares of the industrial products company’s stock worth $172,490,000 after acquiring an additional 336,761 shares during the period. Amundi Pioneer Asset Management Inc. grew its position in Sealed Air by 174.7% in the fourth quarter. Amundi Pioneer Asset Management Inc. now owns 2,962,533 shares of the industrial products company’s stock worth $146,053,000 after acquiring an additional 1,884,070 shares during the period. Manning & Napier Group LLC boosted its position in shares of Sealed Air by 8.4% during the first quarter. Manning & Napier Group LLC now owns 2,509,665 shares of the industrial products company’s stock worth $107,387,000 after buying an additional 193,674 shares during the period. Finally, Massachusetts Financial Services Co. MA boosted its position in shares of Sealed Air by 12.4% during the first quarter. Massachusetts Financial Services Co. MA now owns 2,256,034 shares of the industrial products company’s stock worth $96,537,000 after buying an additional 249,574 shares during the period. Institutional investors own 97.45% of the company’s stock.
Sealed Air Company Profile
Sealed Air Corporation provides food safety and security, and product protection solutions worldwide. The company operates through Food Care and Product Care segments. The Food Care segment offers integrated system solutions that enhance the management of contamination risk during the food and beverage production process, extend product shelf life through packaging technologies, and improve merchandising, ease-of-use, and back-of-house preparation processes to processors, retailers, and food service operators under the Cryovac Grip & Tear, Cryovac Darfresh, Cryovac Mirabella, Simple Steps, and Optidure brands.
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