Ardagh Metal Packaging (NYSE:AMBP) Shares Gap Up Following Earnings Beat

Key Points

• Shares gapped up after Ardagh Metal Packaging reported EPS of $0.05 versus a $0.03 consensus and revenue growth of 18.6%, opening at $4.15 after a $3.85 close.
• The company paid a quarterly dividend of $0.10 (annualized $0.40), reflecting a 10.0% yield despite a peculiar payout ratio of -4,000.00%, highlighting earnings distortions.
• Analysts are largely cautious with a consensus "Hold" rating and a $4.51 price target; the stock trades with a market cap of $2.40 billion and a negative P/E (-401.2), signaling weak margins/earnings.

Ardagh Metal Packaging S.A. (NYSE:AMBP - Get Free Report) shares gapped up before the market opened on Thursday after the company announced better than expected quarterly earnings. The stock had previously closed at $3.85, but opened at $4.15. Ardagh Metal Packaging shares last traded at $3.9950, with a volume of 284,965 shares.

The company reported $0.05 earnings per share for the quarter, beating the consensus estimate of $0.03 by $0.02. Ardagh Metal Packaging had a negative return on equity of 37.42% and a net margin of 0.20%.During the same period in the previous year, the company posted $0.02 EPS. The company's revenue was up 18.6% on a year-over-year basis.

Ardagh Metal Packaging Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Thursday, March 26th. Shareholders of record on Thursday, March 12th were given a dividend of $0.10 per share. The ex-dividend date was Thursday, March 12th. This represents a $0.40 annualized dividend and a yield of 10.0%. Ardagh Metal Packaging's payout ratio is presently -4,000.00%.

Analysts Set New Price Targets

A number of equities analysts have recently commented on the stock. Morgan Stanley set a $4.30 price target on shares of Ardagh Metal Packaging in a report on Thursday, January 8th. Truist Financial raised their price target on Ardagh Metal Packaging from $4.00 to $5.00 and gave the company a "hold" rating in a research report on Tuesday, January 6th. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Ardagh Metal Packaging in a research note on Wednesday, January 21st. UBS Group cut their price objective on Ardagh Metal Packaging from $4.75 to $4.25 and set a "neutral" rating for the company in a report on Friday, April 10th. Finally, Wells Fargo & Company reduced their price objective on Ardagh Metal Packaging from $5.00 to $4.00 and set an "equal weight" rating on the stock in a research report on Friday, March 20th. One research analyst has rated the stock with a Buy rating and six have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock has a consensus rating of "Hold" and a consensus price target of $4.51.

Institutional Trading of Ardagh Metal Packaging

A number of institutional investors have recently made changes to their positions in AMBP. AQR Capital Management LLC boosted its holdings in shares of Ardagh Metal Packaging by 697.8% during the first quarter. AQR Capital Management LLC now owns 317,625 shares of the company's stock worth $959,000 after purchasing an additional 277,813 shares during the period. Dynamic Technology Lab Private Ltd bought a new stake in shares of Ardagh Metal Packaging in the 1st quarter worth approximately $43,000. Creative Planning bought a new stake in shares of Ardagh Metal Packaging during the second quarter valued at approximately $109,000. JPMorgan Chase & Co. boosted its stake in Ardagh Metal Packaging by 310.1% during the 2nd quarter. JPMorgan Chase & Co. now owns 729,506 shares of the company's stock valued at $3,122,000 after purchasing an additional 551,616 shares during the last quarter. Finally, Franklin Resources Inc. bought a new stake in Ardagh Metal Packaging in the 2nd quarter worth about $224,000. Hedge funds and other institutional investors own 16.93% of the company's stock.

Ardagh Metal Packaging Price Performance

The stock has a market capitalization of $2.40 billion, a P/E ratio of -401.20, a price-to-earnings-growth ratio of 1.08 and a beta of 0.62. The business's 50 day moving average price is $4.32 and its 200 day moving average price is $4.11.

About Ardagh Metal Packaging

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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