Zacks Investment Research Downgrades Newell Brands (NWL) to Sell

Zacks Investment Research lowered shares of Newell Brands (NYSE:NWL) from a hold rating to a sell rating in a report issued on Tuesday, Zacks.com reports.

According to Zacks, “Newell has underperformed the industry in the past three months. Further, the company lagged sales estimates for the fourth consecutive time, when it reported fourth-quarter 2018 results. Lower core sales, unfavorable currency and adverse impact from the revenue recognition standard have been weighing on the company's top-line performance. Decline in sales at all its segments also hurt overall sales. Moreover, Newell issued soft earnings outlook for 2019, which hurt investors’ sentiments. In 2019, it continues to witness decline in core sales, which might weigh on the overall top line. However, Newell is smoothly executing the Accelerated Transformation Plan through market share gains, point of sale growth, innovation, e-commerce improvement and cost-saving plans, which remains encouraging. Further, the company reversed its negative margins trend in fourth-quarter 2018 owing to the ongoing productivity efforts.”

A number of other research analysts also recently commented on NWL. Wells Fargo & Co reaffirmed a buy rating and set a $36.00 target price on shares of Newell Brands in a report on Thursday, December 20th. Royal Bank of Canada reduced their target price on Newell Brands from $24.00 to $20.00 and set a sector perform rating on the stock in a report on Tuesday, February 19th. Jefferies Financial Group reduced their target price on Newell Brands to $15.00 and set a hold rating on the stock in a report on Tuesday, February 19th. Citigroup set a $24.00 target price on Newell Brands and gave the stock a buy rating in a report on Wednesday, February 20th. Finally, Barclays set a $16.00 target price on Newell Brands and gave the stock a hold rating in a report on Tuesday, February 19th. One analyst has rated the stock with a sell rating, eight have issued a hold rating and two have issued a buy rating to the company’s stock. The company has an average rating of Hold and an average price target of $20.80.

Shares of NWL opened at $15.18 on Tuesday. The stock has a market capitalization of $6.43 billion, a P/E ratio of 5.52, a price-to-earnings-growth ratio of 3.82 and a beta of 0.90. Newell Brands has a one year low of $14.73 and a one year high of $28.38. The company has a quick ratio of 2.53, a current ratio of 2.98 and a debt-to-equity ratio of 1.54.

Newell Brands (NYSE:NWL) last issued its quarterly earnings results on Friday, February 15th. The company reported $0.71 EPS for the quarter, beating analysts’ consensus estimates of $0.41 by $0.30. Newell Brands had a positive return on equity of 9.55% and a negative net margin of 46.92%. The firm had revenue of $2.34 billion during the quarter, compared to the consensus estimate of $2.43 billion. During the same quarter in the prior year, the business posted $0.68 earnings per share. Newell Brands’s revenue for the quarter was down 6.0% on a year-over-year basis. On average, research analysts anticipate that Newell Brands will post 1.22 EPS for the current year.

Large investors have recently added to or reduced their stakes in the business. Proficio Capital Partners LLC raised its position in shares of Newell Brands by 67.8% during the 4th quarter. Proficio Capital Partners LLC now owns 1,545 shares of the company’s stock worth $29,000 after purchasing an additional 624 shares during the period. Capital Investment Advisory Services LLC acquired a new stake in shares of Newell Brands during the 4th quarter worth approximately $31,000. JOYN Advisors Inc. raised its position in shares of Newell Brands by 232.3% during the 4th quarter. JOYN Advisors Inc. now owns 1,738 shares of the company’s stock worth $32,000 after purchasing an additional 1,215 shares during the period. FNY Investment Advisers LLC raised its position in shares of Newell Brands by 459.1% during the 4th quarter. FNY Investment Advisers LLC now owns 1,957 shares of the company’s stock worth $36,000 after purchasing an additional 1,607 shares during the period. Finally, We Are One Seven LLC acquired a new stake in shares of Newell Brands during the 4th quarter worth approximately $49,000. 98.42% of the stock is currently owned by institutional investors.

Newell Brands Company Profile

Newell Brands Inc designs, manufactures, sources, and distributes consumer and commercial products worldwide. The company's Live segment offers household products, including kitchen appliances, gourmet cookware, bakeware and cutlery, food storage and home storage products, fresh preserving products, and home fragrance products; and baby gear, infant care, and health products primarily under Aprica, Baby Jogger, Ball, Calphalon, Chesapeake Bay Candle, Crock-Pot, FoodSaver, Graco, Mr.

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