Avery Dennison (AVY) Cut to Hold at Zacks Investment Research

Avery Dennison (NYSE:AVY) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research report issued on Tuesday.

According to Zacks, “Avery Dennison's top and bottom line witnessed year-over-year improvement and beat the respective Zacks Consensus Estimate. The company guided earnings per share range of $5.70-$5.95 for fiscal 2018. The midpoint of the range reflects year-over-year growth of 17%. The company expects organic sales growth of 4% for the fiscal 2018. Focus on productivity, acquisitions, aggressive cost control and share repurchases will drive the company's results. Moreover, its consistent execution of strategies continues to enhance competitive advantage while driving profitable growth. Avery Dennison's shares have outperformed the industry over a year's time. However, modest sequential inflation in raw material costs will dent first quarter 2018 margins. Also higher debt levels, weak margins in the Industrial and Healthcare Materials segment remain concerns. “

A number of other equities analysts have also recently commented on the company. Bank of America increased their target price on Avery Dennison from $128.00 to $133.00 and gave the company a “buy” rating in a report on Thursday, February 1st. JPMorgan Chase & Co. cut Avery Dennison from a “neutral” rating to an “underweight” rating and set a $113.00 target price for the company. in a report on Thursday, February 1st. UBS Group began coverage on Avery Dennison in a report on Thursday, January 18th. They set a “buy” rating and a $135.00 target price for the company. Barclays increased their target price on Avery Dennison from $105.00 to $120.00 and gave the company an “overweight” rating in a report on Monday, October 30th. Finally, KeyCorp reissued a “hold” rating on shares of Avery Dennison in a report on Monday, October 30th. One analyst has rated the stock with a sell rating, four have given a hold rating, five have given a buy rating and one has given a strong buy rating to the company. The stock presently has an average rating of “Buy” and a consensus price target of $120.25.

Avery Dennison (NYSE AVY) opened at $114.78 on Tuesday. Avery Dennison has a fifty-two week low of $78.47 and a fifty-two week high of $123.67. The company has a market capitalization of $10,100.00, a P/E ratio of 36.67, a price-to-earnings-growth ratio of 2.78 and a beta of 1.20. The company has a current ratio of 1.13, a quick ratio of 0.83 and a debt-to-equity ratio of 1.26.

Avery Dennison (NYSE:AVY) last announced its earnings results on Wednesday, January 31st. The industrial products company reported $1.33 EPS for the quarter, beating analysts’ consensus estimates of $1.25 by $0.08. Avery Dennison had a return on equity of 42.26% and a net margin of 4.26%. The business had revenue of $1.74 billion during the quarter, compared to analysts’ expectations of $1.70 billion. During the same quarter in the prior year, the firm earned $0.99 earnings per share. The business’s revenue was up 11.9% compared to the same quarter last year. equities research analysts expect that Avery Dennison will post 5.85 EPS for the current fiscal year.

In related news, Director Julia A. Stewart sold 4,000 shares of the stock in a transaction that occurred on Thursday, November 16th. The stock was sold at an average price of $108.42, for a total value of $433,680.00. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. Also, Director Peter K. Barker sold 2,000 shares of the stock in a transaction that occurred on Tuesday, December 12th. The shares were sold at an average price of $114.76, for a total value of $229,520.00. Following the completion of the sale, the director now directly owns 26,703 shares of the company’s stock, valued at approximately $3,064,436.28. The disclosure for this sale can be found here. In the last ninety days, insiders sold 16,855 shares of company stock valued at $1,866,802. Insiders own 1.40% of the company’s stock.

Several large investors have recently bought and sold shares of the stock. National Asset Management Inc. increased its holdings in shares of Avery Dennison by 0.3% in the second quarter. National Asset Management Inc. now owns 4,151 shares of the industrial products company’s stock valued at $369,000 after purchasing an additional 12 shares during the last quarter. Thrivent Financial For Lutherans increased its stake in Avery Dennison by 0.9% during the second quarter. Thrivent Financial For Lutherans now owns 4,640 shares of the industrial products company’s stock worth $413,000 after acquiring an additional 40 shares during the last quarter. Cubist Systematic Strategies LLC increased its stake in Avery Dennison by 19.7% during the third quarter. Cubist Systematic Strategies LLC now owns 2,843 shares of the industrial products company’s stock worth $280,000 after acquiring an additional 468 shares during the last quarter. Sit Investment Associates Inc. increased its stake in Avery Dennison by 6.1% during the fourth quarter. Sit Investment Associates Inc. now owns 8,265 shares of the industrial products company’s stock worth $949,000 after acquiring an additional 475 shares during the last quarter. Finally, Ferguson Wellman Capital Management Inc. increased its stake in Avery Dennison by 0.7% during the fourth quarter. Ferguson Wellman Capital Management Inc. now owns 71,860 shares of the industrial products company’s stock worth $8,254,000 after acquiring an additional 475 shares during the last quarter. 85.88% of the stock is owned by hedge funds and other institutional investors.

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About Avery Dennison

Avery Dennison Corporation (Avery Dennison) is engaged in the production of pressure-sensitive materials and a range of tickets, tags, labels and other converted products. The Company’s segments include Label and Graphic Materials (LGM); Retail Branding and Information Solutions (RBIS), and Industrial and Healthcare Materials (IHM).

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