Ardagh Metal Packaging (NYSE:AMBP) Reaches New 1-Year High - Should You Buy?

Key Points

• Ardagh Metal Packaging reached a new 52-week high, trading as high as $5.54 after closing at $5.06, supported by better-than-expected quarterly results. Revenue rose 17.7% year over year to $1.71 billion, while EPS of $0.11 exceeded estimates by $0.02.
• Analyst sentiment remains cautious despite recent upgrades: the consensus rating is “Hold”, with five Hold ratings and one Buy rating and an average price target of $4.86—below the recent trading price.
• The company declared a quarterly dividend of $0.10 per share, equivalent to a 7.5% annualized yield, though its payout ratio is exceptionally high at 666.67%, raising questions about dividend sustainability.

Ardagh Metal Packaging S.A. (NYSE:AMBP - Get Free Report)'s stock price hit a new 52-week high during mid-day trading on Thursday . The company traded as high as $5.54 and last traded at $5.3180, with a volume of 65655 shares. The stock had previously closed at $5.06.

Wall Street Analysts Forecast Growth

A number of research analysts have commented on AMBP shares. Wall Street Zen raised shares of Ardagh Metal Packaging from a "hold" rating to a "buy" rating in a research report on Saturday, July 25th. Wells Fargo & Company increased their price objective on shares of Ardagh Metal Packaging from $4.00 to $5.00 and gave the stock an "equal weight" rating in a research report on Wednesday, July 15th. UBS Group upped their price target on Ardagh Metal Packaging from $4.75 to $5.00 and gave the stock a "neutral" rating in a research note on Friday, July 24th. Citigroup reaffirmed a "buy" rating on shares of Ardagh Metal Packaging in a research note on Friday, July 24th. Finally, Weiss Ratings upgraded Ardagh Metal Packaging from a "hold (c)" rating to a "hold (c+)" rating in a report on Friday, August 7th. One analyst has rated the stock with a Buy rating and five have issued a Hold rating to the company. According to MarketBeat, Ardagh Metal Packaging currently has a consensus rating of "Hold" and an average price target of $4.86.

Ardagh Metal Packaging Price Performance

The firm has a market cap of $3.20 billion, a PE ratio of 88.93, a price-to-earnings-growth ratio of 0.98 and a beta of 0.51. The company's 50 day moving average price is $4.60 and its 200 day moving average price is $4.39.

Ardagh Metal Packaging (NYSE:AMBP - Get Free Report) last announced its earnings results on Wednesday, July 22nd. The company reported $0.11 earnings per share for the quarter, topping the consensus estimate of $0.09 by $0.02. The firm had revenue of $1.71 billion for the quarter, compared to the consensus estimate of $1.57 billion. Ardagh Metal Packaging had a net margin of 0.68% and a negative return on equity of 27.93%. The firm's revenue for the quarter was up 17.7% on a year-over-year basis. During the same period in the prior year, the firm earned $0.08 EPS. Sell-side analysts expect that Ardagh Metal Packaging S.A. will post 0.28 earnings per share for the current fiscal year.

Ardagh Metal Packaging Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, September 24th. Stockholders of record on Thursday, September 10th will be given a dividend of $0.10 per share. The ex-dividend date of this dividend is Thursday, September 10th. This represents a $0.40 dividend on an annualized basis and a dividend yield of 7.5%. Ardagh Metal Packaging's dividend payout ratio is currently 666.67%.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of AMBP. Arini Captial Management Ltd acquired a new stake in Ardagh Metal Packaging in the fourth quarter valued at approximately $46,109,000. Weiss Asset Management LP lifted its stake in Ardagh Metal Packaging by 11,276.2% in the first quarter. Weiss Asset Management LP now owns 4,516,338 shares of the company's stock worth $18,291,000 after acquiring an additional 4,476,638 shares during the last quarter. Jacobs Levy Equity Management Inc. grew its holdings in Ardagh Metal Packaging by 603.7% during the 3rd quarter. Jacobs Levy Equity Management Inc. now owns 2,357,953 shares of the company's stock worth $9,408,000 after acquiring an additional 2,022,889 shares in the last quarter. Barclays PLC grew its holdings in Ardagh Metal Packaging by 242.7% during the 3rd quarter. Barclays PLC now owns 1,834,361 shares of the company's stock worth $7,319,000 after acquiring an additional 1,299,132 shares in the last quarter. Finally, Shellback Capital LP purchased a new stake in shares of Ardagh Metal Packaging in the 2nd quarter valued at approximately $4,072,000. 16.93% of the stock is currently owned by hedge funds and other institutional investors.

Ardagh Metal Packaging Company Profile

Ardagh Metal Packaging NYSE: AMBP is a global supplier of metal packaging solutions, specializing in the production of steel and aluminum beverage cans, food cans and ends. As a segment of the Ardagh Group, the company supports a broad range of food and beverage customers, including soft drink and craft beer producers, as well as food manufacturers requiring durable, recyclable packaging. Its product portfolio encompasses two‐piece and three‐piece cans, a variety of can ends and closures, and value‐added services such as custom lithography and decorating.

The company operates a network of manufacturing plants across North America and Europe, serving both regional and multinational clients.

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