Energizer (NYSE:ENR) Shares Gap Up Following Earnings Beat

Key Points

• Energizer Holdings, Inc. reported an earnings per share of $1.13 for the quarter, which exceeded the consensus estimate of $0.61, resulting in a gap up in share price from $22.14 to $27.33.
• The company announced a quarterly dividend of $0.30 per share, reflecting a 4.4% yield with a payout ratio of 164.38%.
• Recent research reports have seen varied price target adjustments for Energizer, with JPMorgan Chase increasing its target to $28.00 while Canaccord Genuity lowered theirs to $27.00, indicating cautious sentiment among analysts.

Energizer Holdings, Inc. (NYSE:ENR - Get Free Report) shares gapped up before the market opened on Monday after the company announced better than expected quarterly earnings. The stock had previously closed at $22.14, but opened at $27.33. Energizer shares last traded at $27.95, with a volume of 589,110 shares changing hands.

The company reported $1.13 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.61 by $0.52. Energizer had a net margin of 8.60% and a return on equity of 181.90%. The firm had revenue of $725.30 million for the quarter, compared to analyst estimates of $692.67 million. During the same period in the prior year, the firm posted $0.79 earnings per share. The company's quarterly revenue was up 3.4% compared to the same quarter last year.

Energizer Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 10th. Stockholders of record on Thursday, August 21st will be given a $0.30 dividend. The ex-dividend date of this dividend is Thursday, August 21st. This represents a $1.20 annualized dividend and a dividend yield of 4.0%. Energizer's dividend payout ratio is presently 164.38%.

Analyst Upgrades and Downgrades

Several equities analysts have recently weighed in on the stock. JPMorgan Chase & Co. increased their price objective on shares of Energizer from $27.00 to $28.00 and gave the company a "neutral" rating in a research report on Friday, July 25th. Canaccord Genuity Group dropped their price objective on shares of Energizer from $31.00 to $27.00 and set a "hold" rating on the stock in a research report on Wednesday, May 7th. UBS Group reissued a "neutral" rating and issued a $29.00 price objective (up from $23.00) on shares of Energizer in a research report on Tuesday. Barclays dropped their price objective on shares of Energizer from $26.00 to $24.00 and set an "equal weight" rating on the stock in a research report on Tuesday, July 15th. Finally, Truist Financial increased their price objective on shares of Energizer from $30.00 to $35.00 and gave the company a "buy" rating in a research report on Wednesday. Seven investment analysts have rated the stock with a hold rating and two have issued a buy rating to the company's stock. According to data from MarketBeat, the stock currently has an average rating of "Hold" and an average target price of $32.13.

Insiders Place Their Bets

In other news, Director Patrick J. Moore acquired 10,000 shares of Energizer stock in a transaction on Monday, May 12th. The shares were purchased at an average cost of $23.10 per share, for a total transaction of $231,000.00. Following the completion of the purchase, the director directly owned 15,000 shares of the company's stock, valued at approximately $346,500. This represents a 200.00% increase in their position. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, Director Donal L. Mulligan acquired 10,000 shares of Energizer stock in a transaction on Monday, May 19th. The shares were purchased at an average price of $23.66 per share, for a total transaction of $236,600.00. Following the completion of the purchase, the director directly owned 10,000 shares of the company's stock, valued at approximately $236,600. This represents a ∞ increase in their ownership of the stock. The disclosure for this purchase can be found here. Insiders have bought 25,000 shares of company stock worth $578,140 over the last ninety days. Corporate insiders own 0.98% of the company's stock.

Institutional Investors Weigh In On Energizer

A number of large investors have recently bought and sold shares of the company. CX Institutional acquired a new position in Energizer during the 1st quarter worth approximately $33,000. Caitong International Asset Management Co. Ltd boosted its position in Energizer by 108.4% during the 1st quarter. Caitong International Asset Management Co. Ltd now owns 1,113 shares of the company's stock worth $33,000 after buying an additional 579 shares during the period. Hantz Financial Services Inc. boosted its position in Energizer by 967.1% during the 2nd quarter. Hantz Financial Services Inc. now owns 1,782 shares of the company's stock worth $36,000 after buying an additional 1,615 shares during the period. Blue Trust Inc. boosted its position in Energizer by 38.9% during the 2nd quarter. Blue Trust Inc. now owns 1,883 shares of the company's stock worth $38,000 after buying an additional 527 shares during the period. Finally, Public Employees Retirement System of Ohio acquired a new stake in Energizer during the 4th quarter worth approximately $43,000. 93.74% of the stock is currently owned by institutional investors and hedge funds.

Energizer Trading Up 0.2%

The firm's 50-day moving average is $22.22 and its 200 day moving average is $26.48. The company has a current ratio of 1.78, a quick ratio of 0.86 and a debt-to-equity ratio of 17.57. The firm has a market capitalization of $2.16 billion, a price-to-earnings ratio of 8.63 and a beta of 0.63.

About Energizer

Energizer Holdings, Inc, together with its subsidiaries, manufactures, markets, and distributes household batteries, specialty batteries, and lighting products worldwide. It offers lithium, alkaline, carbon zinc, nickel metal hydride, zinc air, and silver oxide batteries under the Energizer, Eveready, and Rayovac brands; primary, rechargeable, specialty, and hearing aid batteries; and handheld, headlights, lanterns, and area lights, as well as flashlights under the Hard Case, Dolphin, and WeatherReady brands.