Amcor PLC (NYSE:AMCR) Declares $0.65 Quarterly Dividend

Key Points

• Amcor declared a quarterly dividend of $0.65 per share, payable September 24 to shareholders of record on September 4. The dividend implies a 5.6% annualized yield, and the company has raised its dividend for five consecutive years.
• Amcor’s reported quarterly results exceeded expectations, with EPS of $1.23 versus the $1.19 consensus and revenue of $6.40 billion compared with $6.05 billion expected. Revenue increased 25.9% year over year.
• The dividend currently has a high 317.1% payout ratio relative to earnings, though analysts expect that to improve to 61.3% next year. Analysts maintain a “Moderate Buy” consensus rating with an average price target of $48.74.

Amcor PLC (NYSE:AMCR - Get Free Report) announced a quarterly dividend on Wednesday, August 12th. Stockholders of record on Friday, September 4th will be given a dividend of 0.65 per share on Thursday, September 24th. This represents a c) annualized dividend and a dividend yield of 5.6%. The ex-dividend date is Friday, September 4th.

Amcor has increased its dividend payment by an average of 0.0%annually over the last three years and has increased its dividend annually for the last 5 consecutive years. Amcor has a payout ratio of 317.1% indicating that the company cannot currently cover its dividend with earnings alone and is relying on its balance sheet to cover its dividend payments. Equities research analysts expect Amcor to earn $4.24 per share next year, which means the company should continue to be able to cover its $2.60 annual dividend with an expected future payout ratio of 61.3%.

Amcor Stock Performance

Amcor stock opened at $46.49 on Thursday. The business has a 50 day moving average of $43.24 and a 200-day moving average of $42.58. The company has a market capitalization of $21.49 billion, a P/E ratio of 32.51, a P/E/G ratio of 1.49 and a beta of 0.62. Amcor has a 1 year low of $36.25 and a 1 year high of $50.94. The company has a debt-to-equity ratio of 1.30, a current ratio of 1.44 and a quick ratio of 0.95.

Amcor (NYSE:AMCR - Get Free Report) last posted its earnings results on Wednesday, August 12th. The company reported $1.23 EPS for the quarter, topping the consensus estimate of $1.19 by $0.04. Amcor had a net margin of 3.06% and a return on equity of 14.55%. The business had revenue of $6.40 billion for the quarter, compared to the consensus estimate of $6.05 billion. During the same period last year, the company earned $0.20 EPS. The firm's revenue was up 25.9% compared to the same quarter last year. On average, equities research analysts predict that Amcor will post 3.97 earnings per share for the current year.

Analyst Ratings Changes

Several equities analysts have recently issued reports on the stock. UBS Group assumed coverage on shares of Amcor in a research note on Tuesday. They set a "buy" rating and a $56.00 price target for the company. Truist Financial reissued a "buy" rating and issued a $51.00 price objective (up from $50.00) on shares of Amcor in a research note on Thursday, May 7th. Citigroup decreased their price objective on Amcor from $54.00 to $47.00 and set a "buy" rating for the company in a report on Friday, May 8th. Bank of America raised their target price on Amcor from $48.00 to $51.00 and gave the stock a "buy" rating in a research report on Tuesday, July 14th. Finally, Wells Fargo & Company set a $43.00 target price on Amcor and gave the stock an "equal weight" rating in a report on Wednesday, July 15th. One research analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating and six have issued a Hold rating to the company. According to MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average target price of $48.74.

About Amcor

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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