Avery Dennison (NYSE:AVY) Hits New 52-Week Low - Here's Why

Key Points

• Avery Dennison hit a new 52-week low of $156.13, reflecting recent weakness in the stock despite normal trading volume.
• Analysts remain generally constructive on the company, with eight Buy ratings and two Holds, though recent target-price cuts from firms like JPMorgan and Citigroup lowered the average price target to $204.11.
• The company reported solid quarterly results, beating EPS and revenue expectations, and also raised its quarterly dividend to $1.00 per share, up from $0.94.

Shares of Avery Dennison Corporation (NYSE:AVY - Get Free Report) reached a new 52-week low during trading on Friday . The stock traded as low as $156.13 and last traded at $156.3840, with a volume of 353926 shares traded. The stock had previously closed at $159.11.

Analyst Ratings Changes

Several analysts have recently commented on AVY shares. JPMorgan Chase & Co. reduced their target price on shares of Avery Dennison from $205.00 to $185.00 and set an "overweight" rating for the company in a research note on Wednesday, April 29th. BMO Capital Markets raised their price objective on shares of Avery Dennison from $215.00 to $224.00 and gave the company an "outperform" rating in a research note on Friday, February 6th. Citigroup reduced their price objective on shares of Avery Dennison from $190.00 to $185.00 and set a "neutral" rating for the company in a research note on Thursday, April 30th. Deutsche Bank Aktiengesellschaft started coverage on shares of Avery Dennison in a research note on Wednesday, April 1st. They issued a "buy" rating and a $200.00 price objective for the company. Finally, Weiss Ratings reiterated a "hold (c)" rating on shares of Avery Dennison in a research note on Friday, March 27th. Eight equities research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company's stock. According to data from MarketBeat, the stock has an average rating of "Moderate Buy" and an average price target of $204.11.

Avery Dennison Price Performance

The company has a debt-to-equity ratio of 1.38, a current ratio of 1.15 and a quick ratio of 0.80. The company's 50 day moving average is $169.04 and its 200 day moving average is $177.83. The stock has a market cap of $11.95 billion, a price-to-earnings ratio of 17.61, a PEG ratio of 2.73 and a beta of 0.84.

Avery Dennison (NYSE:AVY - Get Free Report) last announced its quarterly earnings data on Tuesday, April 28th. The industrial products company reported $2.47 EPS for the quarter, beating the consensus estimate of $2.41 by $0.06. Avery Dennison had a net margin of 7.66% and a return on equity of 33.69%. The firm had revenue of $2.30 billion during the quarter, compared to analysts' expectations of $2.26 billion. During the same quarter last year, the business earned $2.30 earnings per share. The business's revenue for the quarter was up 7.0% compared to the same quarter last year. Avery Dennison has set its Q2 2026 guidance at 2.430-2.53 EPS. Research analysts forecast that Avery Dennison Corporation will post 10.05 earnings per share for the current fiscal year.

Avery Dennison Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, June 17th. Shareholders of record on Wednesday, June 3rd will be issued a dividend of $1.00 per share. This is an increase from Avery Dennison's previous quarterly dividend of $0.94. The ex-dividend date is Wednesday, June 3rd. This represents a $4.00 annualized dividend and a yield of 2.6%. Avery Dennison's payout ratio is 42.39%.

Insiders Place Their Bets

In other Avery Dennison news, Director Mitchell R. Butier sold 20,000 shares of the firm's stock in a transaction dated Wednesday, March 11th. The shares were sold at an average price of $173.88, for a total transaction of $3,477,600.00. Following the completion of the transaction, the director directly owned 211,147 shares in the company, valued at approximately $36,714,240.36. This trade represents a 8.65% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Company insiders own 0.81% of the company's stock.

Hedge Funds Weigh In On Avery Dennison

Several hedge funds have recently added to or reduced their stakes in AVY. Bartlett & CO. Wealth Management LLC increased its holdings in Avery Dennison by 16,900.0% during the 4th quarter. Bartlett & CO. Wealth Management LLC now owns 170 shares of the industrial products company's stock valued at $31,000 after acquiring an additional 169 shares in the last quarter. Root Financial Partners LLC grew its holdings in shares of Avery Dennison by 60.8% during the fourth quarter. Root Financial Partners LLC now owns 193 shares of the industrial products company's stock worth $35,000 after buying an additional 73 shares in the last quarter. Measured Wealth Private Client Group LLC purchased a new stake in shares of Avery Dennison during the third quarter worth about $36,000. Godfrey Financial Associates Inc. purchased a new stake in shares of Avery Dennison during the fourth quarter worth about $37,000. Finally, CYBER HORNET ETFs LLC purchased a new stake in shares of Avery Dennison during the second quarter worth about $37,000. 94.17% of the stock is currently owned by hedge funds and other institutional investors.

About Avery Dennison

Avery Dennison NYSE: AVY is a global materials science and manufacturing company specializing in labeling and packaging solutions. The company develops pressure-sensitive materials, tags and labels, and adhesive technologies that help brands and businesses enhance product identification, branding and supply-chain performance. Avery Dennison's offerings range from industrial and retail labeling to high-performance tapes, films and graphics materials used across multiple end markets.

The company operates through several key segments, including Label and Graphic Materials, which supplies pressure-sensitive materials for consumer goods; Retail Branding and Information Solutions, offering apparel tags, RFID inlays and digital product identification; Pressure-Sensitive Materials, providing specialty tapes and adhesives; and RF Technologies, focused on advanced RFID and IoT labeling solutions.

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