Silgan (SLGN) Downgraded to Hold at Zacks Investment Research

Zacks Investment Research lowered shares of Silgan (NASDAQ:SLGN) from a buy rating to a hold rating in a research report report published on Friday morning.

According to Zacks, “For 2018, Silgan Holdings expects that its adjusted earnings per share will be $2.03-$2.13, reflecting 26% year-over-year growth at the mid-point. It expects improvement in sales and operating income across all its three segments. For second-quarter 2018, Silgan Holdings guides adjusted earnings per share of 50-54 cents, reflecting 49% increase at the mid-point. This increase is primarily a result of the inclusion of the Dispensing Systems operation. The company expects solid top-line growth for the business in the near future. Improvement in capital expenditures and lower effective tax rate will also drive growth. However, Silgan Holdings’ results will be impacted by ongoing plan of inventories reduction and increase in debt. Recent tariff on steel and aluminum prices will also hurt its margin performance. Moreover, the stock has underperformed the industry to which it belongs to, over the past year.”

Several other brokerages have also recently issued reports on SLGN. Bank of America upped their target price on shares of Silgan from $32.00 to $33.00 and gave the company an underperform rating in a report on Thursday, February 1st. KeyCorp restated a sell rating and issued a $25.00 target price on shares of Silgan in a report on Thursday, February 1st. JPMorgan Chase & Co. upped their target price on shares of Silgan from $31.00 to $32.00 and gave the company an underweight rating in a report on Thursday, April 26th. Barclays upgraded shares of Silgan from an equal weight rating to an overweight rating and upped their target price for the company from $30.00 to $35.00 in a report on Monday, February 12th. Finally, Citigroup lowered their target price on shares of Silgan from $33.00 to $31.00 and set a neutral rating for the company in a report on Thursday, April 5th. Five investment analysts have rated the stock with a sell rating, five have issued a hold rating and four have assigned a buy rating to the company’s stock. The company presently has a consensus rating of Hold and an average price target of $31.33.

Shares of Silgan stock traded up $0.05 during trading hours on Friday, hitting $27.89. The company had a trading volume of 296,196 shares, compared to its average volume of 438,424. Silgan has a twelve month low of $26.49 and a twelve month high of $32.50. The company has a current ratio of 1.07, a quick ratio of 0.57 and a debt-to-equity ratio of 2.64. The stock has a market cap of $3.08 billion, a price-to-earnings ratio of 16.90, a PEG ratio of 1.32 and a beta of 0.48.

Silgan (NASDAQ:SLGN) last issued its earnings results on Wednesday, April 25th. The industrial products company reported $0.42 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.35 by $0.07. Silgan had a net margin of 6.80% and a return on equity of 28.31%. The business had revenue of $1.01 billion during the quarter, compared to analysts’ expectations of $981.34 million. During the same quarter in the prior year, the business posted $0.31 EPS. The company’s revenue for the quarter was up 25.7% on a year-over-year basis. analysts forecast that Silgan will post 2.11 earnings per share for the current fiscal year.

The firm also recently declared a quarterly dividend, which will be paid on Friday, June 15th. Investors of record on Friday, June 1st will be given a $0.10 dividend. The ex-dividend date of this dividend is Thursday, May 31st. This represents a $0.40 annualized dividend and a yield of 1.43%. Silgan’s dividend payout ratio (DPR) is 24.24%.

In other Silgan news, VP B Frederik Prinzen sold 5,367 shares of the company’s stock in a transaction on Wednesday, May 16th. The shares were sold at an average price of $27.24, for a total transaction of $146,197.08. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider Thomas James Snyder sold 10,464 shares of the company’s stock in a transaction on Tuesday, May 22nd. The stock was sold at an average price of $27.55, for a total transaction of $288,283.20. The disclosure for this sale can be found here. In the last quarter, insiders sold 30,831 shares of company stock valued at $869,630. 33.10% of the stock is owned by insiders.

A number of institutional investors have recently made changes to their positions in the business. BlackRock Inc. raised its position in Silgan by 4.2% during the 1st quarter. BlackRock Inc. now owns 6,377,303 shares of the industrial products company’s stock worth $177,606,000 after buying an additional 257,162 shares during the last quarter. Cardinal Capital Management LLC CT raised its position in Silgan by 6.1% during the 1st quarter. Cardinal Capital Management LLC CT now owns 2,645,517 shares of the industrial products company’s stock worth $73,678,000 after buying an additional 152,541 shares during the last quarter. Dimensional Fund Advisors LP raised its position in Silgan by 12.2% during the 1st quarter. Dimensional Fund Advisors LP now owns 1,999,321 shares of the industrial products company’s stock worth $55,681,000 after buying an additional 218,182 shares during the last quarter. American Century Companies Inc. raised its position in Silgan by 6.5% during the 1st quarter. American Century Companies Inc. now owns 1,883,373 shares of the industrial products company’s stock worth $52,452,000 after buying an additional 114,787 shares during the last quarter. Finally, Wells Fargo & Company MN raised its position in Silgan by 5.0% during the 1st quarter. Wells Fargo & Company MN now owns 1,876,811 shares of the industrial products company’s stock worth $52,271,000 after buying an additional 88,757 shares during the last quarter. Institutional investors own 66.91% of the company’s stock.

Silgan Company Profile

Silgan Holdings Inc, together with its subsidiaries, manufactures and sells rigid packaging for consumer goods products worldwide. It operates through three segments: Metal Containers, Closures, and Plastic Containers. The Metal Containers segment manufactures and sells steel and aluminum containers for food products, such as soups, vegetables, fruit, meat, tomato based products, seafood, coffee, adult nutritional drinks, pet food, and other miscellaneous food products, as well as general line metal containers primarily for chemicals.

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