Crown (NYSE:CCK) Shares Gap Up After Strong Earnings

Key Points

• Crown Holdings, Inc. reported a quarterly earnings per share (EPS) of $2.24, exceeding analysts' expectations of $1.98, and achieved revenue of $3.20 billion, also above projections.
• The company declared a quarterly dividend of $0.26, with an annualized dividend of $1.04 and a yield of 1.1%, reflecting a payout ratio of 21.85%.
• Recent analyst ratings showed mixed opinions, with price targets ranging from $97.00 to $124.00, and a consensus rating of "Moderate Buy".

Crown Holdings, Inc. (NYSE:CCK - Get Free Report)'s share price gapped up prior to trading on Tuesday after the company announced better than expected quarterly earnings. The stock had previously closed at $94.41, but opened at $101.31. Crown shares last traded at $99.73, with a volume of 511,907 shares changing hands.

The industrial products company reported $2.24 earnings per share for the quarter, topping analysts' consensus estimates of $1.98 by $0.26. The firm had revenue of $3.20 billion during the quarter, compared to analyst estimates of $3.13 billion. Crown had a net margin of 4.64% and a return on equity of 27.15%. The company's quarterly revenue was up 4.2% on a year-over-year basis. During the same quarter last year, the business earned $1.99 earnings per share. Crown has set its Q4 2025 guidance at 1.650-1.75 EPS. FY 2025 guidance at 7.700-7.80 EPS.

Crown Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Thursday, August 21st. Investors of record on Thursday, August 7th were issued a $0.26 dividend. The ex-dividend date was Thursday, August 7th. This represents a $1.04 annualized dividend and a yield of 1.1%. Crown's payout ratio is 21.85%.

Analyst Ratings Changes

CCK has been the subject of several recent analyst reports. Bank of America lifted their price target on Crown from $110.00 to $117.00 and gave the stock a "buy" rating in a research report on Wednesday, July 9th. Wall Street Zen downgraded Crown from a "buy" rating to a "hold" rating in a research note on Saturday. Citigroup decreased their price objective on Crown from $135.00 to $124.00 and set a "buy" rating on the stock in a report on Monday, September 29th. Wells Fargo & Company decreased their price target on Crown from $113.00 to $97.00 and set an "equal weight" rating on the stock in a report on Wednesday, October 15th. Finally, Mizuho raised their price target on Crown from $116.00 to $120.00 and gave the stock an "outperform" rating in a research report on Tuesday. Twelve equities research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus target price of $116.92.

Insider Buying and Selling at Crown

In related news, CEO Timothy J. Donahue sold 13,000 shares of the stock in a transaction dated Thursday, August 21st. The stock was sold at an average price of $100.52, for a total transaction of $1,306,760.00. Following the transaction, the chief executive officer owned 449,056 shares of the company's stock, valued at approximately $45,139,109.12. This represents a 2.81% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CAO Gerard H. Gifford sold 8,222 shares of the stock in a transaction dated Friday, July 25th. The shares were sold at an average price of $102.93, for a total value of $846,290.46. Following the completion of the sale, the chief accounting officer directly owned 122,585 shares in the company, valued at $12,617,674.05. This represents a 6.29% decrease in their position. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 58,222 shares of company stock valued at $5,873,770. 0.90% of the stock is owned by company insiders.

Institutional Trading of Crown

Institutional investors have recently modified their holdings of the business. True Wealth Design LLC raised its holdings in Crown by 59.1% during the third quarter. True Wealth Design LLC now owns 1,053 shares of the industrial products company's stock worth $102,000 after purchasing an additional 391 shares during the last quarter. Mather Group LLC. purchased a new stake in shares of Crown in the third quarter worth about $39,000. Hennessy Advisors Inc. purchased a new stake in shares of Crown in the third quarter worth about $43,417,000. Merit Financial Group LLC boosted its holdings in Crown by 21.1% in the third quarter. Merit Financial Group LLC now owns 16,674 shares of the industrial products company's stock valued at $1,611,000 after purchasing an additional 2,902 shares during the last quarter. Finally, Abacus FCF Advisors LLC raised its stake in Crown by 40.4% during the third quarter. Abacus FCF Advisors LLC now owns 85,599 shares of the industrial products company's stock valued at $8,268,000 after buying an additional 24,648 shares in the last quarter. 90.93% of the stock is currently owned by hedge funds and other institutional investors.

Crown Price Performance

The company has a quick ratio of 0.69, a current ratio of 1.06 and a debt-to-equity ratio of 1.67. The company has a 50 day simple moving average of $96.23 and a 200-day simple moving average of $97.42. The stock has a market cap of $11.44 billion, a price-to-earnings ratio of 20.66, a PEG ratio of 1.34 and a beta of 0.73.

Crown Company Profile

Crown Holdings, Inc, together with its subsidiaries, engages in the packaging business in the United States and internationally. It operates through Americas Beverage, European Beverage, Asia Pacific, and Transit Packaging segments. The company manufactures and sells recyclable aluminum beverage cans and ends, glass bottles, steel crowns, aluminum caps, non-beverage cans, and aerosol cans and closures.

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