Greif (NYSE:GEF) Releases Earnings Results, Misses Expectations By $0.29 EPS

Key Points

• Greif reported quarterly EPS of $0.87, missing analysts’ consensus estimate of $1.16 by $0.29.
• Shares fell 1.6% on Tuesday to $81.47.
• Greif paid a quarterly dividend of $0.62 per share, equal to a 3.0% annualized yield; analysts’ consensus rating was Hold, with an average price target of $83.40.

Greif (NYSE:GEF - Get Free Report) issued its earnings results on Tuesday. The industrial products company reported $0.87 EPS for the quarter, missing analysts' consensus estimates of $1.16 by ($0.29), Zacks reports. Greif had a net margin of 7.53% and a return on equity of 8.09%.

Greif Stock Down 1.6%

Shares of Greif stock traded down $1.35 during trading hours on Tuesday, reaching $81.47. 396,566 shares of the company were exchanged, compared to its average volume of 262,909. The firm has a market cap of $3.76 billion, a PE ratio of 25.54, a PEG ratio of 0.63 and a beta of 0.79. The company has a debt-to-equity ratio of 0.23, a quick ratio of 0.99 and a current ratio of 1.29. Greif has a 1 year low of $55.90 and a 1 year high of $90.57. The stock's fifty day moving average is $82.53 and its 200 day moving average is $74.59.

Greif Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Thursday, October 1st. Investors of record on Thursday, September 17th were paid a dividend of $0.62 per share. This represents a $2.48 annualized dividend and a yield of 3.0%. The ex-dividend date of this dividend was Thursday, September 17th. Greif's dividend payout ratio is presently 77.74%.

Insider Activity

In related news, EVP Bala Sathyanarayanan sold 1,146 shares of Greif stock in a transaction that occurred on Friday, August 7th. The shares were sold at an average price of $88.60, for a total value of $101,535.60. Following the completion of the transaction, the executive vice president owned 21,323 shares in the company, valued at $1,889,217.80. The trade was a 5.10% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, SVP Timothy Bergwall sold 2,000 shares of Greif stock in a transaction on Monday, October 12th. The stock was sold at an average price of $81.82, for a total transaction of $163,640.00. Following the sale, the senior vice president directly owned 51,832 shares of the company's stock, valued at approximately $4,240,894.24. This trade represents a 3.72% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders sold 49,900 shares of company stock worth $4,414,117. 7.70% of the stock is currently owned by company insiders.

Wall Street Analyst Weigh In

A number of brokerages recently commented on GEF. Weiss Ratings reiterated a "buy (b-)" rating on shares of Greif in a research report on Friday. Wells Fargo & Company dropped their target price on Greif from $90.00 to $88.00 and set a "cautious" rating for the company in a report on Monday, October 19th. Truist Financial cut their target price on Greif from $97.00 to $94.00 and set a "hold" rating for the company in a research note on Monday, October 12th. Wall Street Zen upgraded Greif from a "hold" rating to a "buy" rating in a report on Saturday, August 8th. Finally, Bank of America lowered Greif from a "neutral" rating to an "underperform" rating and set a $70.00 price target on the stock. in a report on Tuesday, July 14th. Two research analysts have rated the stock with a Buy rating, two have issued a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat, Greif has an average rating of "Hold" and a consensus target price of $83.40.

Greif Company Profile

Greif, Inc is a global producer of industrial and paper packaging products and related services. The company manufactures and supplies fiber, steel and plastic drums; intermediate bulk containers; containerboard; corrugated sheets and products; and other packaging solutions for customers in a range of industries.

Greif also provides packaging lifecycle services, including container reconditioning, recycling, logistics and related customer support. Its products are used to package and transport food and beverage ingredients, chemicals, petroleum products, agricultural materials, pharmaceuticals and other industrial goods.

Founded in 1877 as a cooperage business, Greif has expanded into a multinational packaging company serving customers across North America, Europe and other international markets.

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