Sonoco Products’ (SON) “Hold” Rating Reiterated at KeyCorp

KeyCorp reissued their hold rating on shares of Sonoco Products (NYSE:SON) in a research note issued to investors on Thursday morning.

“We are slightly reducing our 2018 adj. EPS estimate to $3.34 from $3.37 (at the high end of guidance of $3.28-$3.34), though slightly increasing our 2019 estimate to $3.46 from $3.43 (below consensus of $3.52). Our 2018 estimate is coming down to reflect the consumer segment weakness, while our 2019 estimate is going up to reflect a benefit from the recent Conitex acquisition. Our revised estimates imply flat adj. EBIT in 2019, which we consider appropriate given how historically high its industrial segment margins already are and given the recent struggles of its consumer segment.”,” KeyCorp’s analyst commented.

Other research analysts also recently issued research reports about the stock. Zacks Investment Research raised shares of Sonoco Products from a sell rating to a hold rating in a research report on Thursday. DA Davidson lifted their price objective on shares of Sonoco Products to $57.00 and gave the stock a neutral rating in a research report on Friday, July 20th. Finally, Barclays lifted their price objective on shares of Sonoco Products from $55.00 to $58.00 and gave the stock a $56.02 rating in a research report on Monday, July 23rd. Five analysts have rated the stock with a hold rating and two have issued a buy rating to the company’s stock. The company presently has a consensus rating of Hold and a consensus price target of $59.00.

NYSE SON traded up $0.83 during trading on Thursday, reaching $55.88. 23,299 shares of the company’s stock traded hands, compared to its average volume of 501,389. The company has a debt-to-equity ratio of 0.71, a quick ratio of 1.07 and a current ratio of 1.53. The company has a market capitalization of $5.25 billion, a price-to-earnings ratio of 19.97, a price-to-earnings-growth ratio of 3.42 and a beta of 1.07. Sonoco Products has a 12-month low of $46.55 and a 12-month high of $58.69.

Sonoco Products (NYSE:SON) last posted its earnings results on Thursday, October 18th. The industrial products company reported $0.86 EPS for the quarter, beating analysts’ consensus estimates of $0.80 by $0.06. Sonoco Products had a net margin of 4.57% and a return on equity of 18.01%. The business had revenue of $1.36 billion for the quarter, compared to the consensus estimate of $1.38 billion. During the same quarter last year, the firm posted $0.76 EPS. The company’s revenue for the quarter was up 3.0% on a year-over-year basis. Equities analysts expect that Sonoco Products will post 3.31 earnings per share for the current fiscal year.

The company also recently disclosed a quarterly dividend, which will be paid on Monday, December 10th. Stockholders of record on Friday, November 9th will be given a $0.41 dividend. This represents a $1.64 dividend on an annualized basis and a dividend yield of 2.93%. The ex-dividend date of this dividend is Thursday, November 8th. Sonoco Products’s payout ratio is currently 58.78%.

In other Sonoco Products news, SVP Rodger D. Fuller sold 1,884 shares of the business’s stock in a transaction that occurred on Thursday, July 26th. The shares were sold at an average price of $55.70, for a total transaction of $104,938.80. Following the sale, the senior vice president now owns 82,174 shares of the company’s stock, valued at approximately $4,577,091.80. The transaction was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Also, CFO Barry L. Saunders sold 6,580 shares of the business’s stock in a transaction that occurred on Tuesday, July 24th. The stock was sold at an average price of $55.85, for a total transaction of $367,493.00. Following the sale, the chief financial officer now directly owns 91,181 shares in the company, valued at approximately $5,092,458.85. The disclosure for this sale can be found here. In the last ninety days, insiders sold 9,602 shares of company stock worth $536,285. Insiders own 1.70% of the company’s stock.

A number of large investors have recently added to or reduced their stakes in the business. BlackRock Inc. grew its position in Sonoco Products by 1.7% during the 2nd quarter. BlackRock Inc. now owns 10,848,632 shares of the industrial products company’s stock worth $569,553,000 after purchasing an additional 179,510 shares during the last quarter. Bank of America Corp DE grew its position in Sonoco Products by 5.3% during the 2nd quarter. Bank of America Corp DE now owns 2,180,081 shares of the industrial products company’s stock worth $114,454,000 after purchasing an additional 110,017 shares during the last quarter. Dimensional Fund Advisors LP grew its position in Sonoco Products by 5.2% during the 2nd quarter. Dimensional Fund Advisors LP now owns 1,436,571 shares of the industrial products company’s stock worth $75,415,000 after purchasing an additional 70,837 shares during the last quarter. Victory Capital Management Inc. grew its position in Sonoco Products by 163.3% during the 2nd quarter. Victory Capital Management Inc. now owns 792,285 shares of the industrial products company’s stock worth $41,595,000 after purchasing an additional 491,419 shares during the last quarter. Finally, Northern Trust Corp grew its position in Sonoco Products by 0.8% during the 2nd quarter. Northern Trust Corp now owns 772,213 shares of the industrial products company’s stock worth $40,541,000 after purchasing an additional 6,062 shares during the last quarter. 70.53% of the stock is currently owned by institutional investors.

Sonoco Products Company Profile

Sonoco Products Company manufactures and sells industrial and consumer packaging products in North and South America, Europe, Australia, and Asia. The company operates through four segments: Consumer Packaging, Display and Packaging, Paper and Industrial Converted Products, and Protective Solutions. The Consumer Packaging segment offers composite and thermoformed plastic round and shaped rigid containers and trays; extruded and injection-molded plastic products; printed flexible packaging products; brand artwork management; and metal and peelable membrane ends and closures.

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Analyst Recommendations for Sonoco Products (NYSE:SON)

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