Ardagh Metal Packaging S.A. Plans Quarterly Dividend of $0.10 (NYSE:AMBP)

Key Points

• Ardagh Metal Packaging announced a quarterly dividend of $0.10 per share, payable on September 24 to shareholders of record on September 10. The dividend implies an annualized yield of about 8.5%.
• The company’s dividend appears not fully covered by earnings, with a payout ratio of 166.7%. Analysts also expect future earnings may still fall short of covering the annual dividend.
• Ardagh Metal Packaging recently beat quarterly estimates, reporting EPS of $0.11 versus $0.09 expected and revenue of $1.71 billion versus $1.57 billion expected. Despite the beat, Wall Street’s consensus rating remains Hold with an average target price of $4.71.

Ardagh Metal Packaging S.A. (NYSE:AMBP - Get Free Report) announced a quarterly dividend on Thursday, July 23rd. Investors of record on Thursday, September 10th will be given a dividend of 0.10 per share on Thursday, September 24th. This represents a c) dividend on an annualized basis and a yield of 8.5%. The ex-dividend date of this dividend is Thursday, September 10th.

Ardagh Metal Packaging has a payout ratio of 166.7% indicating that the company cannot currently cover its dividend with earnings alone and is relying on its balance sheet to cover its dividend payments. Research analysts expect Ardagh Metal Packaging to earn $0.30 per share next year, which means the company may not be able to cover its $0.40 annual dividend with an expected future payout ratio of 133.3%.

Ardagh Metal Packaging Price Performance

Ardagh Metal Packaging stock traded down $0.01 during mid-day trading on Thursday, reaching $4.70. 4,453,714 shares of the stock traded hands, compared to its average volume of 1,627,863. Ardagh Metal Packaging has a 12-month low of $3.29 and a 12-month high of $5.43. The business's 50-day moving average is $4.34 and its 200-day moving average is $4.32. The stock has a market capitalization of $2.81 billion, a PE ratio of 19.54, a price-to-earnings-growth ratio of 1.00 and a beta of 0.51.

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 (EPS) for the quarter, topping the consensus estimate of $0.09 by $0.02. The business had revenue of $1.71 billion for the quarter, compared to analysts' expectations of $1.57 billion. Ardagh Metal Packaging had a negative return on equity of 31.14% and a net margin of 0.19%.The business's revenue for the quarter was up 17.7% on a year-over-year basis. During the same period last year, the firm posted $0.08 earnings per share. Equities analysts anticipate that Ardagh Metal Packaging will post 0.25 EPS for the current fiscal year.

Wall Street Analyst Weigh In

Several equities research analysts have recently commented on the stock. Weiss Ratings raised shares of Ardagh Metal Packaging from a "hold (c-)" rating to a "hold (c)" rating in a research report on Wednesday, April 29th. Citigroup dropped their price objective on shares of Ardagh Metal Packaging from $6.00 to $5.00 and set a "buy" rating on the stock in a report on Friday, April 24th. UBS Group cut their target price on shares of Ardagh Metal Packaging from $4.75 to $4.25 and set a "neutral" rating for the company in a research report on Friday, April 10th. Finally, Wells Fargo & Company upped their target price on shares of Ardagh Metal Packaging from $4.00 to $5.00 and gave the company an "equal weight" rating in a report on Wednesday, July 15th. One investment analyst has rated the stock with a Buy rating and five have issued a Hold rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of "Hold" and an average target price of $4.71.

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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