Sonoco Products (NYSE:SON) Reaches New 12-Month Low on Disappointing Earnings

Sonoco Products (NYSE:SON) reached a new 52-week low during mid-day trading on Wednesday after the company announced weaker than expected quarterly earnings. The stock traded as low as $44.36 and last traded at $46.35, with a volume of 217840 shares changing hands. The stock had previously closed at $48.14.

The industrial products company reported $1.17 EPS for the quarter, missing analysts’ consensus estimates of $1.18 by ($0.01). The firm had revenue of $1.36 billion for the quarter, compared to analyst estimates of $1.67 billion. Sonoco Products had a net margin of 4.38% and a return on equity of 19.92%.

Sonoco Products Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Monday, March 10th. Stockholders of record on Wednesday, February 26th will be issued a dividend of $0.52 per share. This represents a $2.08 dividend on an annualized basis and a dividend yield of 4.48%. The ex-dividend date is Wednesday, February 26th. Sonoco Products’s payout ratio is 71.48%.

Wall Street Analyst Weigh In

A number of research firms recently weighed in on SON. Robert W. Baird lowered their price target on shares of Sonoco Products from $58.00 to $55.00 and set a “neutral” rating on the stock in a research report on Monday, November 4th. Truist Financial boosted their target price on Sonoco Products from $63.00 to $68.00 and gave the stock a “buy” rating in a report on Monday, January 6th. Citigroup cut their price target on Sonoco Products from $59.00 to $55.00 and set a “buy” rating for the company in a report on Monday, January 6th. Wells Fargo & Company lowered their price objective on Sonoco Products from $52.00 to $50.00 and set an “underweight” rating on the stock in a research note on Monday, January 6th. Finally, Bank of America upped their target price on Sonoco Products from $66.00 to $71.00 and gave the company a “buy” rating in a report on Monday, January 6th. One equities research analyst has rated the stock with a sell rating, one has given a hold rating and five have given a buy rating to the stock. Based on data from MarketBeat, the company has a consensus rating of “Moderate Buy” and an average price target of $60.17.

Insider Buying and Selling

In other Sonoco Products news, Director Robert R. Hill, Jr. sold 4,000 shares of the company’s stock in a transaction dated Tuesday, January 7th. The shares were sold at an average price of $47.95, for a total value of $191,800.00. Following the transaction, the director now owns 16,065 shares of the company’s stock, valued at $770,316.75. This represents a 19.94 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this link. 0.51% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Sonoco Products

A number of institutional investors and hedge funds have recently made changes to their positions in SON. Cooper Creek Partners Management LLC acquired a new stake in Sonoco Products in the 4th quarter valued at approximately $78,203,000. Norges Bank purchased a new position in shares of Sonoco Products during the fourth quarter worth $60,984,000. Invenomic Capital Management LP boosted its position in shares of Sonoco Products by 368.6% during the fourth quarter. Invenomic Capital Management LP now owns 666,430 shares of the industrial products company’s stock worth $32,555,000 after buying an additional 524,198 shares during the period. Private Management Group Inc. acquired a new stake in shares of Sonoco Products in the third quarter valued at $24,994,000. Finally, Deprince Race & Zollo Inc. raised its holdings in shares of Sonoco Products by 53.4% in the 4th quarter. Deprince Race & Zollo Inc. now owns 1,272,121 shares of the industrial products company’s stock valued at $62,143,000 after buying an additional 442,892 shares during the period. 77.69% of the stock is owned by hedge funds and other institutional investors.

Sonoco Products Trading Down 3.6 %

The company has a 50 day moving average of $48.46 and a 200-day moving average of $51.11. The stock has a market cap of $4.56 billion, a price-to-earnings ratio of 15.93, a price-to-earnings-growth ratio of 0.76 and a beta of 0.67. The company has a debt-to-equity ratio of 1.74, a quick ratio of 1.91 and a current ratio of 2.36.

Sonoco Products Company Profile

Sonoco Products Company, together with its subsidiaries, designs, develops, manufactures, and sells various engineered and sustainable packaging products in North and South America, Europe, Australia, and Asia. The company operates Consumer Packaging and Industrial Paper Packaging segments. The Consumer Packaging segment offers round and shaped rigid paper, steel, and plastic containers; metal and peelable membrane ends, closures, and components; thermoformed plastic trays and enclosures; and high-barrier flexible packaging products.