Sonoco Products Shares Downgraded to 'Hold' by StockNews.com

Sonoco Products (NYSE:SON) has experienced a downgrade by analysts at StockNews.com, who changed their rating from "buy" to "hold" in a note issued to investors on Thursday. This decision has caught the attention of the market as analysts reassess the company’s prospects.

Several other research firms have recently weighed in on Sonoco Products as well. For instance, Bank of America increased their price target from $66.00 to $71.00, maintaining a "buy" rating as of January 6. Likewise, Citigroup lowered their target from $59.00 to $55.00 while still rating the stock as a "buy." On the same day, Truist Financial raised their price objective from $63.00 to $68.00, keeping their "buy" stance. However, Robert W. Baird reduced their target from $58.00 to $55.00, shifting their rating to "neutral" on November 4. Additionally, Wells Fargo decreased their price target from $52.00 to $50.00 and classified the stock as "underweight." Currently, one analyst has assigned a sell rating, while two analysts rated it as a hold and four others still maintain a buy rating. According to MarketBeat, the consensus rating among analysts for Sonoco Products is now "Hold," with an average price target of $60.17.

Recent Trading Performance

On the day of the downgrade, shares of Sonoco Products fell 0.4%, trading at $46.18. The volume for the day reached 1,068,971 shares compared to the average daily volume of 771,693. The company’s market capitalization stands at $4.54 billion. Sonoco Products has a price-to-earnings ratio of 27.99 and a price-to-earnings-growth ratio of 0.77. The stock reached a 52-week low of $44.35 and a high of $61.73 over the past year. Currently, the 50-day and 200-day moving averages are around $48.22 and $51.04, respectively. Key financial ratios are also favorable, including a current ratio of 2.36, a quick ratio of 1.91, and a debt-to-equity ratio of 1.74.

Financial Results

Sonoco Products released its quarterly earnings on February 18, reporting earnings per share (EPS) of $1.17, narrowly missing the consensus estimate of $1.18 by $0.01. The company achieved a net margin of 2.60% and a return on equity of 20.46%. It generated revenue of $1.36 billion for the quarter, falling short of the anticipated $1.67 billion. Research forecasts suggest Sonoco Products will post an EPS of 6.25 for the current fiscal year.

Insider Transactions

In terms of insider trading, Director Robert R. Hill, Jr. sold 4,000 shares of the company's stock on January 7 at an average price of $47.95, totaling $191,800. Following this sale, Hill owns 16,065 shares valued at approximately $770,316. This transaction highlights the cautious sentiment surrounding the stock, with insiders holding only 0.51% of the company’s shares.

Institutional Investments

Institutional trading has also shown some movement recently. Kennebec Savings Bank opened a new position in Sonoco Products during the third quarter, estimated at about $27,000. Other investors like Capital Performance Advisors and Colonial Trust Co SC have also made new acquisitions, showing a growing interest in the stock. A significant 77.69% of Sonoco Products’ shares are held by institutional investors and hedge funds.

Company Overview

Sonoco Products Company specializes in designing and manufacturing various engineered and sustainable packaging products. With operations across North and South America, Europe, Australia, and Asia, the company operates through two main segments: Consumer Packaging and Industrial Paper Packaging. Its consumer packaging segment offers a range of products, including rigid paper, steel, and plastic containers, as well as flexible packaging options.

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