Avery Dennison (AVY) Downgraded to “Sell” at Zacks Investment Research

Zacks Investment Research cut shares of Avery Dennison (NYSE:AVY) from a hold rating to a sell rating in a research report sent to investors on Friday.

According to Zacks, “Avery Dennison expects its adjusted earnings per share will be $5.95-$6.10 for 2018. The company estimates organic sales growth to be 5-5.5% for the year. Avery Dennison's earnings wil be impacted by charges regarding the termination of its pension plan. Negative impact of currency translation and raw material price inflation will also hurt growth.”

A number of other equities research analysts also recently issued reports on AVY. Barclays reduced their price target on shares of Avery Dennison from $135.00 to $130.00 and set an overweight rating on the stock in a research note on Wednesday, June 27th. Loop Capital set a $111.00 price target on shares of Avery Dennison and gave the company a hold rating in a research note on Friday, July 13th. Citigroup boosted their price target on shares of Avery Dennison from $126.00 to $130.00 and gave the company a buy rating in a research note on Wednesday, July 25th. Finally, Bank of America boosted their price target on shares of Avery Dennison from $114.00 to $126.00 and gave the company a buy rating in a research note on Wednesday, July 25th. One research analyst has rated the stock with a sell rating, three have assigned a hold rating and six have issued a buy rating to the stock. Avery Dennison currently has a consensus rating of Buy and a consensus price target of $123.78.

Shares of AVY stock opened at $106.91 on Friday. The company has a current ratio of 1.10, a quick ratio of 0.79 and a debt-to-equity ratio of 1.26. Avery Dennison has a 12 month low of $98.15 and a 12 month high of $123.67. The stock has a market cap of $9.47 billion, a price-to-earnings ratio of 21.32, a PEG ratio of 2.55 and a beta of 1.26.

Avery Dennison (NYSE:AVY) last issued its earnings results on Tuesday, July 24th. The industrial products company reported $1.66 EPS for the quarter, topping analysts’ consensus estimates of $1.55 by $0.11. Avery Dennison had a net margin of 3.83% and a return on equity of 47.47%. The company had revenue of $1.85 billion for the quarter, compared to the consensus estimate of $1.80 billion. During the same period in the previous year, the firm earned $1.31 earnings per share. Avery Dennison’s quarterly revenue was up 14.0% compared to the same quarter last year. On average, research analysts anticipate that Avery Dennison will post 6.08 EPS for the current fiscal year.

The business also recently declared a quarterly dividend, which was paid on Wednesday, September 19th. Stockholders of record on Wednesday, September 5th were paid a $0.52 dividend. This represents a $2.08 dividend on an annualized basis and a dividend yield of 1.95%. The ex-dividend date of this dividend was Tuesday, September 4th. Avery Dennison’s dividend payout ratio (DPR) is 41.60%.

In related news, insider Georges Gravanis sold 13,000 shares of Avery Dennison stock in a transaction that occurred on Monday, July 30th. The shares were sold at an average price of $112.67, for a total value of $1,464,710.00. Following the completion of the transaction, the insider now owns 11,886 shares in the company, valued at $1,339,195.62. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Anthony Anderson sold 1,275 shares of Avery Dennison stock in a transaction that occurred on Friday, September 7th. The shares were sold at an average price of $104.75, for a total transaction of $133,556.25. The disclosure for this sale can be found here. 1.30% of the stock is currently owned by insiders.

Hedge funds have recently made changes to their positions in the stock. Squar Milner Financial Services LLC acquired a new position in shares of Avery Dennison in the second quarter valued at approximately $112,000. Steward Partners Investment Advisory LLC grew its holdings in shares of Avery Dennison by 270.4% in the second quarter. Steward Partners Investment Advisory LLC now owns 1,152 shares of the industrial products company’s stock valued at $118,000 after purchasing an additional 841 shares in the last quarter. Fort L.P. acquired a new position in shares of Avery Dennison in the second quarter valued at approximately $120,000. Radnor Capital Management LLC acquired a new position in shares of Avery Dennison in the third quarter valued at approximately $209,000. Finally, Gideon Capital Advisors Inc. acquired a new position in shares of Avery Dennison in the first quarter valued at approximately $205,000. Hedge funds and other institutional investors own 84.62% of the company’s stock.

About Avery Dennison

Avery Dennison Corporation produces and sells pressure-sensitive materials worldwide. The company's Label and Graphic Materials segment offers pressure-sensitive label and packaging materials; and graphics and reflective products under the Fasson, JAC, Avery Dennison, and Mactac brands. It also offers durable cast and reflective films.

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