Avery Dennison (NYSE:AVY) Sets New 52-Week Low - What's Next?

Key Points

• Avery Dennison shares hit a new 52-week low, trading as low as $152.42 after closing at $155.18, while the stock was down about 1.4% on the day.
• Despite the weak stock performance, the company’s latest earnings beat estimates, with Q1 EPS of $2.47 versus $2.41 expected and revenue of $2.30 billion, up 7% year over year.
• The company also raised its quarterly dividend to $1.00 per share from $0.94, while analysts maintain a Moderate Buy rating with an average target price of $201.33.

Avery Dennison Corporation (NYSE:AVY - Get Free Report)'s stock price reached a new 52-week low during trading on Monday . The stock traded as low as $152.42 and last traded at $153.6170, with a volume of 183030 shares. The stock had previously closed at $155.18.

Analyst Upgrades and Downgrades

Several equities research analysts recently commented on AVY shares. Deutsche Bank Aktiengesellschaft started coverage on shares of Avery Dennison in a research note on Wednesday, April 1st. They set a "buy" rating and a $200.00 price objective on the stock. Citigroup dropped their price objective on shares of Avery Dennison from $190.00 to $185.00 and set a "neutral" rating on the stock in a research note on Thursday, April 30th. Weiss Ratings reissued a "hold (c)" rating on shares of Avery Dennison in a research note on Friday, March 27th. UBS Group dropped their price objective on shares of Avery Dennison from $226.00 to $222.00 and set a "buy" rating on the stock in a research note on Friday, April 10th. Finally, Truist Financial reissued a "buy" rating and set a $221.00 price objective (down from $223.00) on shares of Avery Dennison in a research note on Wednesday, April 29th. Eight analysts have rated the stock with a Buy rating and two have given a Hold rating to the company. According to MarketBeat, Avery Dennison presently has an average rating of "Moderate Buy" and an average target price of $201.33.

Avery Dennison Trading Down 1.4%

The firm's 50 day moving average price is $164.45 and its 200-day moving average price is $175.90. The stock has a market cap of $11.70 billion, a P/E ratio of 17.24, a P/E/G ratio of 2.67 and a beta of 0.82. The company has a debt-to-equity ratio of 1.38, a current ratio of 1.15 and a quick ratio of 0.80.

Avery Dennison (NYSE:AVY - Get Free Report) last issued its earnings results on Tuesday, April 28th. The industrial products company reported $2.47 earnings per share (EPS) for the quarter, topping 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 for the quarter, compared to the consensus estimate of $2.26 billion. During the same quarter in the prior year, the firm posted $2.30 earnings per share. The business's revenue was up 7.0% on a year-over-year basis. Avery Dennison has set its Q2 2026 guidance at 2.430-2.53 EPS. As a group, equities research analysts forecast that Avery Dennison Corporation will post 10.05 earnings per share for the current year.

Avery Dennison Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, June 17th. Stockholders of record on Wednesday, June 3rd will be issued a dividend of $1.00 per share. The ex-dividend date of this dividend is Wednesday, June 3rd. This is a positive change from Avery Dennison's previous quarterly dividend of $0.94. This represents a $4.00 annualized dividend and a dividend yield of 2.6%. Avery Dennison's dividend payout ratio is presently 45.10%.

Insider Buying and Selling at Avery Dennison

In other news, Director Mitchell R. Butier sold 20,000 shares of the business's stock in a transaction that occurred 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 completion of the transaction, the director directly owned 211,147 shares of the company's stock, valued at $36,714,240.36. The trade was a 8.65% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. 0.81% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in AVY. Norges Bank purchased a new stake in Avery Dennison during the fourth quarter valued at approximately $188,438,000. Morgan Stanley increased its holdings in Avery Dennison by 20.1% during the fourth quarter. Morgan Stanley now owns 3,869,889 shares of the industrial products company's stock valued at $703,856,000 after buying an additional 647,795 shares during the last quarter. Wellington Management Group LLP increased its holdings in Avery Dennison by 12.5% during the third quarter. Wellington Management Group LLP now owns 5,808,960 shares of the industrial products company's stock valued at $942,039,000 after buying an additional 644,664 shares during the last quarter. Cooke & Bieler LP purchased a new stake in Avery Dennison during the fourth quarter valued at approximately $105,616,000. Finally, Balyasny Asset Management L.P. purchased a new stake in Avery Dennison during the third quarter valued at approximately $74,942,000. 94.17% of the stock is 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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