Prospera Financial Services Inc has made some changes to its investment in Avery Dennison Co. (NYSE:AVY) as of the third quarter, reducing its holdings by 4.5%, according to a recent filing with the Securities and Exchange Commission. By selling 150 shares, they now hold 3,209 shares of the company, which are valued at approximately $709,000 as per their latest SEC submission.
In recent months, other institutional investors and hedge funds also adjusted their positions in Avery Dennison. Cetera Investment Advisers dramatically increased its position by 195.2% in the first quarter, acquiring an additional 11,811 shares to own 17,863 shares worth $3,988,000. SG Americas Securities LLC also bolstered its holdings by 86.5% during the second quarter, acquiring 15,092 more shares. They now have 32,538 shares valued at $7,114,000. Additionally, McElhenny Sheffield Capital Management LLC started a new position in the second quarter with an investment roughly worth $543,000. Meanwhile, Swedbank AB slightly increased its investment by 1.0% in the second quarter, now owning 462,083 shares valued at $101,034,000. Jane Street Group LLC rounded out these moves with an 11.0% increase in its share holding in the first quarter, acquiring 4,697 more shares to now own 47,420 shares worth $10,587,000. Overall, 94.17% of the stock is held by institutional investors.
On a positive note, Avery Dennison’s shares are up by 1.5%, opening at $202.59 this past Friday. The company’s stock saw a 50-day moving average of $210.78 and a 200-day moving average of $216.80. It currently has a 12-month range between a low of $187.93 and a high of $233.48, standing with a market cap of $16.28 billion and a P/E ratio of 24.32. The PEG ratio is at 1.53 and the beta is 0.89, showing moderate volatility. In terms of balance sheet strength, the company reports a quick ratio of 0.62, a current ratio of 0.92, and maintains a debt-to-equity ratio of 0.85.
Let’s dig into Avery Dennison’s recent financial results for some perspectives. On October 23rd, they posted their quarterly results, revealing an earnings per share (EPS) of $2.33, slightly surpassing analysts’ predictions by $0.01. The company demonstrated a solid return on equity of 33.01% and a net margin of 7.76%. Revenue came in at $2.18 billion, just shy of the expected $2.20 billion but marking an increase of 4.1% from the same period last year. Analysts predict a $9.42 EPS for this fiscal year.
Moving on, the company recently announced a forthcoming quarterly dividend of $0.88 per share, to be distributed on December 18th to all shareholders recorded by December 4th. This sits as an annualized payout of $3.52 per share, reflecting a dividend yield of 1.74%, with the payout ratio calculated at 42.26%.
In terms of market sentiment, several analysts have adjusted their outlook and ratings for Avery Dennison. BMO Capital Markets now targets a price of $247.00, marking Avery an “outperform” but slightly lowering their estimation from $252.00 noted earlier in October. Likewise, Barclays and Citigroup made marginal adjustments to their price targets. In a notable shift, JPMorgan Chase & Co. downgraded their rating from “overweight” to “neutral,” dropping their price target from $230.00 to $210.00. Conversely, Bank of America has shown confidence, upgrading their rating to a “buy” from “underperform” and increasing their target price significantly. Out of twelve analysts, four have maintained a hold stance, with eight recommending a buy, resulting in an average “Moderate Buy” rating and a target price of approximately $244.96, according to MarketBeat.com data.
As an overview, Avery Dennison Corporation operates globally, delivering materials science and digital identification solutions. Their portfolio includes pressure-sensitive materials, performance tapes, and mechanical fasteners across various industrial and retail applications, with products marketed under the Fasson, JAC, Yongle, and Avery Dennison brands.
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