Sonoco Products (NYSE:SON) Shares Gap Down on Disappointing Earnings

Sonoco Products Company (NYSE:SON) shares gapped down before the market opened on Wednesday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $56.79, but opened at $52.80. Sonoco Products shares last traded at $48.9510, with a volume of 732,979 shares changing hands.

The industrial products company reported $1.20 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.57 by ($0.37). Sonoco Products had a net margin of 13.34% and a return on equity of 18.52%. The company had revenue of $1.68 billion during the quarter, compared to the consensus estimate of $1.88 billion. During the same quarter in the prior year, the firm posted $1.38 earnings per share. The business’s revenue was down 1.9% on a year-over-year basis. Sonoco Products has set its FY 2026 guidance at 5.800-6.200 EPS.

Sonoco Products Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, June 10th. Investors of record on Friday, May 8th will be given a $0.54 dividend. This is an increase from Sonoco Products’s previous quarterly dividend of $0.53. This represents a $2.16 dividend on an annualized basis and a dividend yield of 4.4%. The ex-dividend date is Friday, May 8th. Sonoco Products’s dividend payout ratio (DPR) is presently 21.05%.

Wall Street Analysts Forecast Growth

Several equities analysts have weighed in on the company. Zacks Research upgraded Sonoco Products from a “strong sell” rating to a “hold” rating in a report on Tuesday, January 6th. Wells Fargo & Company lowered their target price on Sonoco Products from $60.00 to $56.00 and set an “equal weight” rating for the company in a research report on Friday, March 20th. Weiss Ratings restated a “hold (c-)” rating on shares of Sonoco Products in a research report on Wednesday, January 21st. UBS Group decreased their price target on shares of Sonoco Products from $62.00 to $59.00 and set a “neutral” rating on the stock in a research note on Friday, April 10th. Finally, Deutsche Bank Aktiengesellschaft started coverage on shares of Sonoco Products in a research report on Wednesday, April 1st. They set a “buy” rating and a $63.00 price objective for the company. Five investment analysts have rated the stock with a Buy rating and seven have given a Hold rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Hold” and a consensus price target of $61.78.

Insider Activity

In other news, insider Ernest D. Haynes III sold 1,581 shares of Sonoco Products stock in a transaction that occurred on Friday, February 27th. The stock was sold at an average price of $56.39, for a total value of $89,152.59. Following the completion of the transaction, the insider owned 9,377 shares in the company, valued at approximately $528,769.03. The trade was a 14.43% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. 0.98% of the stock is owned by insiders.

Institutional Trading of Sonoco Products

Institutional investors have recently bought and sold shares of the stock. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its stake in Sonoco Products by 44.3% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 49,093 shares of the industrial products company’s stock worth $2,319,000 after buying an additional 15,079 shares during the period. Goldman Sachs Group Inc. raised its stake in shares of Sonoco Products by 80.8% in the first quarter. Goldman Sachs Group Inc. now owns 206,493 shares of the industrial products company’s stock valued at $9,755,000 after acquiring an additional 92,286 shares during the period. Empowered Funds LLC lifted its holdings in shares of Sonoco Products by 14.1% in the 1st quarter. Empowered Funds LLC now owns 11,058 shares of the industrial products company’s stock worth $522,000 after acquiring an additional 1,364 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its stake in shares of Sonoco Products by 87.9% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 545,179 shares of the industrial products company’s stock worth $25,754,000 after purchasing an additional 255,055 shares during the period. Finally, EverSource Wealth Advisors LLC grew its holdings in Sonoco Products by 315.4% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 1,587 shares of the industrial products company’s stock valued at $69,000 after purchasing an additional 1,205 shares during the last quarter. 77.69% of the stock is currently owned by institutional investors.

Sonoco Products Price Performance

The company has a debt-to-equity ratio of 1.04, a quick ratio of 0.60 and a current ratio of 1.05. The company has a market capitalization of $4.84 billion, a P/E ratio of 4.89, a P/E/G ratio of 1.13 and a beta of 0.50. The firm’s fifty day moving average is $54.43 and its 200 day moving average is $47.36.

Sonoco Products Company Profile

Sonoco Products Company (NYSE: SON) is a global provider of diversified packaging solutions, serving a wide range of consumer, industrial and retail markets. The company offers a broad portfolio that includes rigid paper and plastic containers, flexible packaging, industrial core and tube products, thermoformed plastics, retail point-of-purchase displays, and packaging supply chain services. Through its solutions, Sonoco helps customers in food and beverage, personal care, chemicals, healthcare, home and garden, and electronics industries address their packaging needs, improve product shelf appeal, and optimize logistics efficiency.

With operations in more than 30 countries across North America, South America, Europe, Asia and Africa, Sonoco leverages a global network of manufacturing facilities, recycling centers and distribution channels to meet the demands of multinational and regional customers.