Brandes Investment Partners LP Boosts Holdings in Sonoco Products Company $SON

Key Points

• Brandes Investment Partners LP more than doubled its stake in Sonoco Products in the fourth quarter, boosting its holdings by 110.8% to 368,464 shares worth about $16.1 million.
• Sonoco Products reported weaker-than-expected quarterly results, with earnings of $1.20 per share versus the $1.57 consensus and revenue of $1.68 billion versus $1.88 billion expected.
• The company raised its quarterly dividend to $0.54 per share, translating to an annualized payout of $2.16 and a yield of 4.4%.

Brandes Investment Partners LP raised its stake in shares of Sonoco Products Company (NYSE:SON - Free Report) by 110.8% during the 4th quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 368,464 shares of the industrial products company's stock after purchasing an additional 193,682 shares during the period. Brandes Investment Partners LP owned 0.37% of Sonoco Products worth $16,080,000 at the end of the most recent quarter.

Several other hedge funds and other institutional investors have also added to or reduced their stakes in SON. SBI Securities Co. Ltd. raised its position in shares of Sonoco Products by 77.7% in the fourth quarter. SBI Securities Co. Ltd. now owns 590 shares of the industrial products company's stock valued at $26,000 after buying an additional 258 shares during the last quarter. LRI Investments LLC acquired a new stake in shares of Sonoco Products in the fourth quarter valued at about $29,000. Ameriflex Group Inc. raised its position in shares of Sonoco Products by 1,263.6% in the third quarter. Ameriflex Group Inc. now owns 900 shares of the industrial products company's stock valued at $39,000 after buying an additional 834 shares during the last quarter. Larson Financial Group LLC raised its position in shares of Sonoco Products by 1,826.9% in the third quarter. Larson Financial Group LLC now owns 1,002 shares of the industrial products company's stock valued at $43,000 after buying an additional 950 shares during the last quarter. Finally, Cullen Frost Bankers Inc. acquired a new stake in shares of Sonoco Products in the fourth quarter valued at about $47,000. 77.69% of the stock is owned by hedge funds and other institutional investors.

Sonoco Products Price Performance

Shares of SON opened at $49.07 on Thursday. Sonoco Products Company has a 1-year low of $38.65 and a 1-year high of $58.44. The stock has a market cap of $4.85 billion, a PE ratio of 4.81, a P/E/G ratio of 1.05 and a beta of 0.39. The firm has a 50-day simple moving average of $51.19 and a two-hundred day simple moving average of $49.44. The company has a debt-to-equity ratio of 0.97, a current ratio of 0.96 and a quick ratio of 0.54.

Sonoco Products (NYSE:SON - Get Free Report) last announced its quarterly earnings results on Tuesday, April 21st. The industrial products company reported $1.20 earnings per share for the quarter, missing analysts' consensus estimates of $1.57 by ($0.37). Sonoco Products had a net margin of 13.57% and a return on equity of 16.50%. The company had revenue of $1.68 billion for the quarter, compared to analyst estimates of $1.88 billion. During the same quarter in the prior year, the business earned $1.38 earnings per share. Sonoco Products's revenue was down 1.9% on a year-over-year basis. Sonoco Products has set its FY 2026 guidance at 5.800-6.200 EPS. As a group, analysts forecast that Sonoco Products Company will post 5.81 EPS for the current year.

Sonoco Products Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Wednesday, June 10th. Shareholders of record on Friday, May 8th were given a dividend of $0.54 per share. This is a boost from Sonoco Products's previous quarterly dividend of $0.53. This represents a $2.16 dividend on an annualized basis and a dividend yield of 4.4%. The ex-dividend date was Friday, May 8th. Sonoco Products's dividend payout ratio (DPR) is 21.18%.

Insider Transactions at Sonoco Products

In other Sonoco Products news, insider James A. Harrell III acquired 6,753 shares of the stock in a transaction dated Monday, April 27th. The stock was acquired at an average price of $50.37 per share, with a total value of $340,148.61. Following the completion of the purchase, the insider owned 10,070 shares in the company, valued at $507,225.90. This trade represents a 203.59% increase in their position. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Also, CFO Paul Joachimczyk acquired 8,058 shares of the stock in a transaction dated Friday, April 24th. The stock was acquired at an average cost of $49.64 per share, with a total value of $399,999.12. Following the purchase, the chief financial officer owned 28,558 shares of the company's stock, valued at approximately $1,417,619.12. This trade represents a 39.31% increase in their position. The SEC filing for this purchase provides additional information. 0.98% of the stock is owned by company insiders.

Analyst Upgrades and Downgrades

SON has been the subject of a number of recent research reports. Deutsche Bank Aktiengesellschaft initiated coverage on shares of Sonoco Products in a research report on Wednesday, April 1st. They issued a "buy" rating and a $63.00 target price for the company. Robert W. Baird reduced their target price on shares of Sonoco Products from $60.00 to $55.00 and set a "neutral" rating for the company in a research report on Thursday, April 23rd. Bank of America reiterated a "buy" rating on shares of Sonoco Products in a research report on Wednesday, April 22nd. Citigroup cut their price objective on shares of Sonoco Products from $70.00 to $63.00 and set a "buy" rating for the company in a research report on Thursday, April 23rd. Finally, Wells Fargo & Company cut their price objective on shares of Sonoco Products from $60.00 to $56.00 and set an "equal weight" rating for the company in a research report on Friday, March 20th. Five research analysts have rated the stock with a Buy rating and seven have given a Hold rating to the company's stock. Based on data from MarketBeat, Sonoco Products presently has a consensus rating of "Hold" and an average target price of $60.11.

Sonoco Products Company Profile

Sonoco Products Company NYSE: SON is a global provider of diversified packaging solutions, serving a wide range of consumer, industrial and retail markets. The company offers a broad portfolio that includes rigid paper and plastic containers, flexible packaging, industrial core and tube products, thermoformed plastics, retail point-of-purchase displays, and packaging supply chain services. Through its solutions, Sonoco helps customers in food and beverage, personal care, chemicals, healthcare, home and garden, and electronics industries address their packaging needs, improve product shelf appeal, and optimize logistics efficiency.

With operations in more than 30 countries across North America, South America, Europe, Asia and Africa, Sonoco leverages a global network of manufacturing facilities, recycling centers and distribution channels to meet the demands of multinational and regional customers.

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