Avery Dennison (NYSE:AVY) Reaches New 1-Year Low - Here's Why

Key Points

• Avery Dennison hit a new 52-week low intraday, falling as low as $152.68 before last trading around $158.28, even as the stock had previously closed at $154.26.
• Despite the weak share price, the company beat quarterly earnings and revenue expectations, reporting $2.47 EPS on $2.30 billion in revenue, and it raised its quarterly dividend to $1.00 per share from $0.94.
• Wall Street remains mostly constructive: analysts have a Moderate Buy consensus with a $204.11 average price target, though some firms recently trimmed their targets and one lowered its rating to neutral.

Avery Dennison Corporation (NYSE:AVY - Get Free Report)'s share price reached a new 52-week low during mid-day trading on Thursday . The company traded as low as $152.68 and last traded at $158.2760, with a volume of 808196 shares changing hands. The stock had previously closed at $154.26.

Analysts Set New Price Targets

A number of research analysts have issued reports on the stock. BMO Capital Markets boosted their target price 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 target price 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. 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. Deutsche Bank Aktiengesellschaft assumed coverage on shares of Avery Dennison in a research note on Wednesday, April 1st. They set a "buy" rating and a $200.00 target price for the company. Finally, Truist Financial reissued a "buy" rating and set a $221.00 target price (down from $223.00) on shares of Avery Dennison in a research note on Wednesday, April 29th. Eight research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus price target of $204.11.

Avery Dennison Stock Up 2.6%

The business has a 50-day moving average price of $167.00 and a 200-day moving average price of $177.23. The company has a market capitalization of $12.11 billion, a price-to-earnings ratio of 17.84, a price-to-earnings-growth ratio of 2.65 and a beta of 0.84. The company has a quick ratio of 0.80, a current ratio of 1.15 and a debt-to-equity ratio of 1.38.

Avery Dennison (NYSE:AVY - Get Free Report) last issued its quarterly earnings results 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. The business had revenue of $2.30 billion during the quarter, compared to the consensus estimate of $2.26 billion. Avery Dennison had a net margin of 7.66% and a return on equity of 33.69%. The firm's quarterly revenue was up 7.0% on a year-over-year basis. During the same quarter in the prior year, the firm earned $2.30 EPS. Avery Dennison has set its Q2 2026 guidance at 2.430-2.53 EPS. As a group, equities analysts anticipate that Avery Dennison Corporation will post 10.05 earnings per share for the current fiscal year.

Avery Dennison Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, June 17th. Stockholders of record on Wednesday, June 3rd will be paid a dividend of $1.00 per share. This is a positive change 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 dividend yield of 2.5%. Avery Dennison's dividend payout ratio (DPR) is currently 42.39%.

Insider Activity at Avery Dennison

In other news, Director Mitchell R. Butier sold 20,000 shares of the stock in a transaction on 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 transaction, the director owned 211,147 shares in the company, valued at $36,714,240.36. This represents a 8.65% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. 0.81% of the stock is currently owned by company insiders.

Institutional Trading of Avery Dennison

Several large investors have recently modified their holdings of the company. Bartlett & CO. Wealth Management LLC grew its position in Avery Dennison by 16,900.0% in the 4th quarter. Bartlett & CO. Wealth Management LLC now owns 170 shares of the industrial products company's stock worth $31,000 after purchasing an additional 169 shares during the last quarter. Root Financial Partners LLC grew its position in Avery Dennison by 60.8% in the 4th quarter. Root Financial Partners LLC now owns 193 shares of the industrial products company's stock worth $35,000 after purchasing an additional 73 shares during the last quarter. Measured Wealth Private Client Group LLC acquired a new stake in Avery Dennison in the 3rd quarter worth $36,000. Godfrey Financial Associates Inc. acquired a new stake in Avery Dennison in the 4th quarter worth $37,000. Finally, CYBER HORNET ETFs LLC bought a new position in shares of Avery Dennison during the 2nd quarter worth about $37,000. 94.17% of the stock is owned by institutional investors.

Avery Dennison Company Profile

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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