Sonoco Products (SON) Cut to “Hold” at Zacks Investment Research

Sonoco Products (NYSE:SON) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research note issued to investors on Monday.

According to Zacks, “For full-year 2018, Sonoco expects its adjusted earnings per share will be $3.22-$3.32, reflecting a downward revision in the expected effective tax rate and anticipated earnings accretion from the Highland Packaging acquisition. Compared with the earnings per share in 2017, the mid-point of the guidance reflects year-over-year growth of 17%. For second-quarter 2018, the company projects adjusted earnings per share of 83-89 cents, reflecting 100% year-over-year growth at the mid-point. Sonoco is poised to gain from the Highland Packaging acquisition which will strengthen its thermoforming business. Further, its Grow and Optimize strategy will also aid growth. However, impact of the transition tax, inflationary pressure and operational issues will affect Sonoco’s performance. A strong dollar also remains another headwind. Moreover, the stock has underperformed the industry over the past year.”

Other equities analysts also recently issued research reports about the company. TheStreet raised Sonoco Products from a “c+” rating to a “b” rating in a research report on Thursday, April 19th. UBS initiated coverage on Sonoco Products in a research report on Friday, April 13th. They set a “buy” rating and a $55.00 price target for the company. Vertical Research raised Sonoco Products from a “hold” rating to a “buy” rating in a research report on Friday, March 23rd. KeyCorp reissued a “hold” rating on shares of Sonoco Products in a research report on Thursday, April 19th. Finally, Bank of America downgraded Sonoco Products from a “buy” rating to a “neutral” rating and set a $59.00 price target for the company. in a research report on Monday, April 2nd. One analyst has rated the stock with a sell rating, six have assigned a hold rating and two have assigned a buy rating to the company’s stock. The stock currently has a consensus rating of “Hold” and an average target price of $54.29.

NYSE SON traded up $0.09 during mid-day trading on Monday, hitting $51.94. The stock had a trading volume of 341,902 shares, compared to its average volume of 488,737. Sonoco Products has a 52-week low of $46.55 and a 52-week high of $55.77. The company has a market capitalization of $5.17 billion, a P/E ratio of 18.62, a PEG ratio of 3.38 and a beta of 1.12. The company has a debt-to-equity ratio of 0.72, a current ratio of 1.61 and a quick ratio of 1.16.

Sonoco Products (NYSE:SON) last released its quarterly earnings data on Thursday, April 19th. The industrial products company reported $0.74 earnings per share for the quarter, beating the consensus estimate of $0.72 by $0.02. Sonoco Products had a return on equity of 17.02% and a net margin of 3.79%. The firm had revenue of $1.30 billion during the quarter, compared to the consensus estimate of $1.29 billion. During the same period last year, the business posted $0.59 EPS. Sonoco Products’s quarterly revenue was up 11.3% on a year-over-year basis. research analysts expect that Sonoco Products will post 3.29 earnings per share for the current fiscal year.

In other news, VP Marcy J. Thompson sold 1,101 shares of the firm’s stock in a transaction on Thursday, April 26th. The stock was sold at an average price of $53.00, for a total transaction of $58,353.00. Following the sale, the vice president now owns 15,510 shares in the company, valued at $822,030. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, SVP Rodger D. Fuller sold 13,974 shares of the firm’s stock in a transaction on Friday, April 20th. The stock was sold at an average price of $51.05, for a total value of $713,372.70. Following the sale, the senior vice president now owns 72,174 shares in the company, valued at approximately $3,684,482.70. The disclosure for this sale can be found here. Insiders have sold 23,632 shares of company stock worth $1,219,525 in the last 90 days. Insiders own 1.70% of the company’s stock.

Several hedge funds have recently bought and sold shares of SON. Suntrust Banks Inc. boosted its holdings in Sonoco Products by 17.2% in the first quarter. Suntrust Banks Inc. now owns 83,214 shares of the industrial products company’s stock valued at $4,034,000 after acquiring an additional 12,242 shares during the last quarter. Financial Gravity Wealth Inc. acquired a new position in Sonoco Products in the first quarter valued at $203,000. Allianz Asset Management GmbH boosted its holdings in Sonoco Products by 45.1% in the first quarter. Allianz Asset Management GmbH now owns 336,582 shares of the industrial products company’s stock valued at $16,324,000 after acquiring an additional 104,647 shares during the last quarter. Principal Financial Group Inc. boosted its holdings in Sonoco Products by 2.7% in the first quarter. Principal Financial Group Inc. now owns 435,838 shares of the industrial products company’s stock valued at $21,138,000 after acquiring an additional 11,648 shares during the last quarter. Finally, Navellier & Associates Inc acquired a new position in Sonoco Products in the first quarter valued at $1,864,000. Institutional investors and hedge funds own 69.34% of the company’s stock.

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.

Get a free copy of the Zacks research report on Sonoco Products (SON)

For more information about research offerings from Zacks Investment Research, visit Zacks.com

Analyst Recommendations for Sonoco Products (NYSE:SON)

Receive News & Ratings for Sonoco Products Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Sonoco Products and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply