Silgan (SLGN) Rating Lowered to Hold at Zacks Investment Research

Silgan (NASDAQ:SLGN) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research note issued to investors on Wednesday.

According to Zacks, “For 2018, Silgan Holdings expects that its adjusted earnings per share will be $2.03-$2.13, reflecting 26% year-over-year growth at the mid-point. It expects improvement in sales and operating income across all its three segments. For second-quarter 2018, Silgan Holdings guides adjusted earnings per share of 50-54 cents, reflecting 49% increase at the mid-point. This increase is primarily a result of the inclusion of the Dispensing Systems operation. The company expects solid top-line growth for the business in the near future. Improvement in capital expenditures and lower effective tax rate will also drive growth. However, Silgan Holdings’ results will be impacted by ongoing plan of inventories reduction and increase in debt. Recent tariff on steel and aluminum prices will also hurt its margin performance. Moreover, the stock has underperformed the industry to which it belongs to, over the past year.”

SLGN has been the topic of a number of other research reports. Bank of America increased their target price on Silgan from $32.00 to $33.00 and gave the stock an “underperform” rating in a report on Thursday, February 1st. ValuEngine downgraded Silgan from a “sell” rating to a “strong sell” rating in a report on Friday, May 4th. KeyCorp reaffirmed a “sell” rating and set a $25.00 target price on shares of Silgan in a report on Thursday, February 1st. Barclays raised Silgan from an “equal weight” rating to an “overweight” rating and increased their target price for the stock from $30.00 to $35.00 in a report on Monday, February 12th. Finally, Citigroup reduced their target price on Silgan from $33.00 to $31.00 and set a “neutral” rating on the stock in a report on Thursday, April 5th. Five equities research analysts have rated the stock with a sell rating, four have issued a hold rating and four have assigned a buy rating to the stock. The company presently has a consensus rating of “Hold” and an average target price of $31.18.

Shares of Silgan opened at $27.31 on Wednesday, according to Marketbeat Ratings. The company has a quick ratio of 0.57, a current ratio of 1.07 and a debt-to-equity ratio of 2.64. Silgan has a one year low of $27.07 and a one year high of $27.16. The stock has a market capitalization of $2.99 billion, a P/E ratio of 16.55, a price-to-earnings-growth ratio of 1.28 and a beta of 0.48.

Silgan (NASDAQ:SLGN) last released its earnings results on Wednesday, April 25th. The industrial products company reported $0.42 EPS for the quarter, topping analysts’ consensus estimates of $0.35 by $0.07. Silgan had a return on equity of 28.31% and a net margin of 6.80%. The company had revenue of $1.01 billion for the quarter, compared to the consensus estimate of $981.34 million. During the same quarter last year, the business posted $0.31 EPS. Silgan’s quarterly revenue was up 25.7% compared to the same quarter last year. research analysts anticipate that Silgan will post 2.11 EPS for the current year.

In related news, CFO Robert B. Lewis sold 15,000 shares of the firm’s stock in a transaction that occurred on Monday, February 26th. The stock was sold at an average price of $29.01, for a total value of $435,150.00. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, Director D Greg Horrigan sold 28,600 shares of the firm’s stock in a transaction that occurred on Thursday, February 22nd. The stock was sold at an average price of $28.61, for a total value of $818,246.00. Following the completion of the sale, the director now directly owns 7,826,790 shares in the company, valued at approximately $223,924,461.90. The disclosure for this sale can be found here. Company insiders own 33.10% of the company’s stock.

Several hedge funds and other institutional investors have recently made changes to their positions in the stock. BlackRock Inc. lifted its holdings in shares of Silgan by 4.2% in the 1st quarter. BlackRock Inc. now owns 6,377,303 shares of the industrial products company’s stock worth $177,606,000 after purchasing an additional 257,162 shares during the last quarter. Cardinal Capital Management LLC CT lifted its holdings in shares of Silgan by 6.1% in the 1st quarter. Cardinal Capital Management LLC CT now owns 2,645,517 shares of the industrial products company’s stock worth $73,678,000 after purchasing an additional 152,541 shares during the last quarter. Dimensional Fund Advisors LP lifted its holdings in shares of Silgan by 12.2% in the 1st quarter. Dimensional Fund Advisors LP now owns 1,999,321 shares of the industrial products company’s stock worth $55,681,000 after purchasing an additional 218,182 shares during the last quarter. American Century Companies Inc. lifted its holdings in shares of Silgan by 6.5% in the 1st quarter. American Century Companies Inc. now owns 1,883,373 shares of the industrial products company’s stock worth $52,452,000 after purchasing an additional 114,787 shares during the last quarter. Finally, Wells Fargo & Company MN lifted its holdings in shares of Silgan by 5.0% in the 1st quarter. Wells Fargo & Company MN now owns 1,876,811 shares of the industrial products company’s stock worth $52,271,000 after purchasing an additional 88,757 shares during the last quarter. 67.84% of the stock is currently owned by institutional investors and hedge funds.

Silgan Company Profile

Silgan Holdings Inc, together with its subsidiaries, manufactures and sells rigid packaging for consumer goods products worldwide. It operates through three segments: Metal Containers, Closures, and Plastic Containers. The Metal Containers segment manufactures and sells steel and aluminum containers for food products, such as soups, vegetables, fruit, meat, tomato based products, seafood, coffee, adult nutritional drinks, pet food, and other miscellaneous food products, as well as general line metal containers primarily for chemicals.

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