Avery Dennison (NYSE:AVY) Shares Up 7.2% on Better-Than-Expected Earnings

Key Points

• Avery Dennison's stock rose 7.2% after reporting quarterly earnings of $2.37 per share, surpassing analysts' expectations of $2.34.
• The company announced a quarterly dividend of $0.94, equating to an annual yield of 2.1% and a payout ratio of 42.20%.
• Recent analyst ratings show a mix of "buy" and "hold" ratings, with the average price target set at $195.30.

Avery Dennison Corporation (NYSE:AVY - Get Free Report)'s stock price shot up 7.2% on Wednesday after the company announced better than expected quarterly earnings. The stock traded as high as $173.53 and last traded at $175.36. 244,164 shares traded hands during trading, a decline of 66% from the average session volume of 719,650 shares. The stock had previously closed at $163.53.

The industrial products company reported $2.37 earnings per share for the quarter, beating analysts' consensus estimates of $2.34 by $0.03. Avery Dennison had a return on equity of 33.14% and a net margin of 8.14%.During the same period in the previous year, the business earned $2.33 EPS. The firm's revenue for the quarter was up 1.5% on a year-over-year basis. Avery Dennison has set its Q4 2025 guidance at 2.350-2.450 EPS.

Avery Dennison Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, September 17th. Shareholders of record on Wednesday, September 3rd were paid 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 2.1%. Avery Dennison's payout ratio is currently 42.20%.

Analyst Ratings Changes

AVY has been the topic of a number of recent analyst reports. Citigroup reduced their price objective 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. Weiss Ratings reissued a "hold (c-)" rating on shares of Avery Dennison in a research note on Tuesday, October 14th. UBS Group reduced their price objective on Avery Dennison from $188.00 to $181.00 and set a "neutral" rating on the stock in a research note on Monday, October 6th. Truist Financial reduced their price objective on Avery Dennison from $204.00 to $203.00 and set a "buy" rating on the stock in a research note on Monday, October 13th. Finally, BMO Capital Markets reissued an "outperform" rating and issued a $207.00 price objective (down previously from $216.00) on shares of Avery Dennison in a research note on Wednesday, July 23rd. Six research analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company's stock. Based on data from MarketBeat, Avery Dennison has an average rating of "Moderate Buy" and a consensus price target of $195.30.

Hedge Funds Weigh In On Avery Dennison

Large investors have recently made changes to their positions in the company. Bayforest Capital Ltd acquired a new position in shares of Avery Dennison during the first quarter valued at $27,000. Thurston Springer Miller Herd & Titak Inc. lifted its stake in Avery Dennison by 193.1% in the second quarter. Thurston Springer Miller Herd & Titak Inc. now owns 170 shares of the industrial products company's stock valued at $30,000 after buying an additional 112 shares during the period. Vermillion & White Wealth Management Group LLC lifted its stake in Avery Dennison by 89.9% in the second quarter. Vermillion & White Wealth Management Group LLC now owns 169 shares of the industrial products company's stock valued at $30,000 after buying an additional 80 shares during the period. NewSquare Capital LLC lifted its stake in Avery Dennison by 156.2% in the second quarter. NewSquare Capital LLC now owns 187 shares of the industrial products company's stock valued at $33,000 after buying an additional 114 shares during the period. Finally, Atlantic Union Bankshares Corp acquired a new position in Avery Dennison in the second quarter valued at about $35,000. Institutional investors and hedge funds own 94.17% of the company's stock.

Avery Dennison Stock Up 7.6%

The firm has a 50 day simple moving average of $166.42 and a two-hundred day simple moving average of $172.27. The company has a debt-to-equity ratio of 1.19, a current ratio of 1.04 and a quick ratio of 0.70. The stock has a market cap of $13.73 billion, a price-to-earnings ratio of 19.76, a price-to-earnings-growth ratio of 2.37 and a beta of 0.95.

Avery Dennison Company Profile

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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