Avery Dennison (NYSE:AVY) Hits New 12-Month Low on Analyst Downgrade

Key Points

• Avery Dennison's shares hit a new 12-month low at $156.23 after Truist Financial downgraded their price target from $204.00 to $203.00, although they maintain a buy rating.
• Institutional investors hold a significant stake in Avery Dennison, with 94.17% of the company's stock owned by these entities, including a notable acquisition by Norges Bank valued at approximately $174 million.
• The company recently declared a quarterly dividend of $0.94, representing an annualized payment of $3.76 and a yield of 2.4% with a payout ratio of 42.20%.

Avery Dennison Corporation (NYSE:AVY - Get Free Report)'s share price hit a new 52-week low during trading on Tuesday after Truist Financial lowered their price target on the stock from $204.00 to $203.00. Truist Financial currently has a buy rating on the stock. Avery Dennison traded as low as $156.23 and last traded at $158.36, with a volume of 35990 shares trading hands. The stock had previously closed at $157.49.

AVY has been the topic of several other research reports. Bank of America raised their price target on Avery Dennison from $195.00 to $208.00 and gave the company a "buy" rating in a research note on Wednesday, July 9th. Citigroup cut their target price on Avery Dennison from $191.00 to $177.00 and set a "neutral" rating on the stock in a research note on Monday, September 29th. BMO Capital Markets reiterated an "outperform" rating and issued a $207.00 target price (down previously from $216.00) on shares of Avery Dennison in a research note on Wednesday, July 23rd. Raymond James Financial lifted their target price on Avery Dennison from $194.00 to $200.00 and gave the company an "outperform" rating in a research note on Tuesday, July 15th. Finally, Weiss Ratings reiterated a "hold (c)" rating on shares of Avery Dennison in a research note on Saturday, September 27th. Six investment analysts have rated the stock with a Buy rating and six have given a Hold rating to the company. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average price target of $195.30.

Institutional Investors Weigh In On Avery Dennison

Several institutional investors have recently added to or reduced their stakes in AVY. Norges Bank acquired a new stake in shares of Avery Dennison during the second quarter worth about $174,425,000. DAVENPORT & Co LLC lifted its holdings in shares of Avery Dennison by 905.0% during the first quarter. DAVENPORT & Co LLC now owns 324,095 shares of the industrial products company's stock worth $57,503,000 after purchasing an additional 291,848 shares during the period. Vanguard Group Inc. lifted its holdings in shares of Avery Dennison by 2.9% during the first quarter. Vanguard Group Inc. now owns 9,959,263 shares of the industrial products company's stock worth $1,772,450,000 after purchasing an additional 277,554 shares during the period. Nuveen LLC acquired a new stake in shares of Avery Dennison during the first quarter worth about $46,322,000. Finally, Johnson Investment Counsel Inc. lifted its holdings in Avery Dennison by 1,305.6% in the first quarter. Johnson Investment Counsel Inc. now owns 264,452 shares of the industrial products company's stock valued at $47,065,000 after acquiring an additional 245,638 shares during the period. Institutional investors and hedge funds own 94.17% of the company's stock.

Avery Dennison Price Performance

The company has a market capitalization of $12.35 billion, a price-to-earnings ratio of 17.79, a P/E/G ratio of 2.34 and a beta of 0.95. The stock has a fifty day simple moving average of $167.63 and a 200-day simple moving average of $172.93. The company has a debt-to-equity ratio of 1.19, a current ratio of 1.04 and a quick ratio of 0.70.

Avery Dennison (NYSE:AVY - Get Free Report) last announced its quarterly earnings results on Tuesday, July 22nd. The industrial products company reported $2.42 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.38 by $0.04. Avery Dennison had a return on equity of 33.14% and a net margin of 8.14%.The company had revenue of $2.22 billion during the quarter, compared to the consensus estimate of $2.23 billion. During the same period in the previous year, the company posted $2.42 earnings per share. Avery Dennison's revenue for the quarter was down .7% on a year-over-year basis. Avery Dennison has set its Q3 2025 guidance at 2.240-2.40 EPS. On average, equities research analysts anticipate that Avery Dennison Corporation will post 9.96 EPS for the current year.

Avery Dennison Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Wednesday, September 17th. Shareholders of record on Wednesday, September 3rd were issued a $0.94 dividend. The ex-dividend date of this dividend was Wednesday, September 3rd. This represents a $3.76 dividend on an annualized basis and a yield of 2.4%. Avery Dennison's payout ratio is presently 42.20%.

About Avery Dennison

Avery Dennison Corporation operates as a materials science and digital identification solutions company in the United States, Europe, the Middle East, North Africa, Asia, Latin, America, and internationally. It provides pressure-sensitive materials comprising papers, plastic films, metal foils, and fabrics; performance tapes products, including tapes for wire harnessing, as well as cable wrapping for automotive, electrical, and general industrial applications; mechanical fasteners, which are precision-extruded and injection-molded plastic devices used in various automotive, general industrial, and retail applications; and other pressure-sensitive adhesive-based materials and converted products under the Fasson, JAC, Yongle, and Avery Dennison brands.

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