Amcor (NYSE:AMCR) Shares Down 5.4% - Time to Sell?

Key Points

• Shares fell 5.4% intraday to about $41.77 on Friday with trading volume (~2.18M) roughly 42% below the average session volume.
• Analysts remain mostly positive with a consensus rating of “Moderate Buy” and an average price target of $53.36, while several firms have recently initiated or raised targets (up to $60).
• Amcor recently raised its quarterly dividend to $0.65 (annualized $2.60, a 6.3% yield) but carries a 152.94% payout ratio

Amcor PLC (NYSE:AMCR - Get Free Report)'s stock price traded down 5.4% during mid-day trading on Friday . The company traded as low as $41.79 and last traded at $41.7660. 2,177,673 shares traded hands during mid-day trading, a decline of 42% from the average session volume of 3,758,017 shares. The stock had previously closed at $44.16.

Analysts Set New Price Targets

Several research firms have weighed in on AMCR. Royal Bank Of Canada assumed coverage on shares of Amcor in a report on Monday, September 22nd. They set a "sector perform" rating on the stock. Morgan Stanley reiterated an "overweight" rating and issued a $57.50 target price on shares of Amcor in a research note on Wednesday, November 12th. JPMorgan Chase & Co. initiated coverage on shares of Amcor in a research note on Friday, September 19th. They set an "overweight" rating and a $50.00 price objective for the company. Baird R W raised Amcor from a "hold" rating to a "strong-buy" rating in a research note on Wednesday, January 7th. Finally, Truist Financial increased their target price on Amcor from $55.00 to $60.00 and gave the company a "buy" rating in a report on Tuesday, January 6th. One investment analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating and four have issued a Hold rating to the company. According to data from MarketBeat.com, Amcor has a consensus rating of "Moderate Buy" and an average target price of $53.36.

Amcor Price Performance

The stock has a 50 day moving average of $42.15 and a 200-day moving average of $43.08. The company has a current ratio of 1.04, a quick ratio of 0.62 and a debt-to-equity ratio of 1.09. The stock has a market capitalization of $94.55 billion, a P/E ratio of 120.62, a price-to-earnings-growth ratio of 1.02 and a beta of 0.68.

Amcor (NYSE:AMCR - Get Free Report) last posted its quarterly earnings results on Wednesday, November 5th. The company reported $0.96 EPS for the quarter, topping the consensus estimate of $0.95 by $0.01. The company had revenue of $5.75 billion for the quarter, compared to the consensus estimate of $5.77 billion. Amcor had a net margin of 3.34% and a return on equity of 17.35%. The firm's revenue was up 71.3% compared to the same quarter last year. During the same quarter last year, the firm posted $0.80 EPS. On average, equities research analysts anticipate that Amcor PLC will post 0.74 earnings per share for the current fiscal year.

Amcor Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Wednesday, December 17th. Shareholders of record on Friday, November 28th were paid a dividend of $0.65 per share. This represents a $2.60 dividend on an annualized basis and a yield of 6.3%. The ex-dividend date was Friday, November 28th. This is a positive change from Amcor's previous quarterly dividend of $0.13. Amcor's dividend payout ratio (DPR) is currently 152.94%.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of the company. Vanguard Group Inc. boosted its holdings in shares of Amcor by 61.8% in the 2nd quarter. Vanguard Group Inc. now owns 110,228,036 shares of the company's stock valued at $1,012,996,000 after acquiring an additional 42,122,135 shares during the last quarter. State Street Corp raised its stake in shares of Amcor by 41.4% during the 2nd quarter. State Street Corp now owns 129,701,986 shares of the company's stock valued at $1,191,961,000 after buying an additional 37,982,310 shares during the last quarter. Norges Bank acquired a new position in shares of Amcor in the 2nd quarter valued at about $328,839,000. Charles Schwab Investment Management Inc. boosted its stake in shares of Amcor by 62.1% in the second quarter. Charles Schwab Investment Management Inc. now owns 80,770,303 shares of the company's stock worth $742,279,000 after buying an additional 30,938,660 shares during the last quarter. Finally, M&G PLC grew its holdings in Amcor by 26.6% during the third quarter. M&G PLC now owns 108,333,984 shares of the company's stock worth $866,672,000 after acquiring an additional 22,737,979 shares during the period. 45.14% of the stock is currently owned by hedge funds and other institutional investors.

Amcor Company Profile

Amcor NYSE: AMCR is a global packaging company specializing in the design, development and production of flexible and rigid packaging solutions for food, beverage, pharmaceutical, medical, home and personal care, and other consumer and industrial products. The company's product portfolio encompasses flexible films, pouches, specialty cartons, rigid containers, metal closures and dispensing systems. Amcor's packaging solutions are engineered to preserve product quality, extend shelf life and meet the specific requirements of a wide range of end markets.

Founded in its current form in 2005 following a spin-off from a mining conglomerate, Amcor expanded its capabilities and geographic footprint through organic investments and strategic acquisitions.

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