Pzena Investment Management LLC Invests $207.58 Million in Spectrum Brands Holdings Inc. $SPB

Key Points

• Pzena Investment Management acquired 2.42 million Spectrum Brands shares worth approximately $207.6 million, giving it a 10.53% stake. Several other institutional investors also increased or initiated positions in SPB.
• Spectrum Brands reported strong quarterly results, with EPS of $2.79 versus the $1.46 consensus estimate and revenue of $753.3 million, up 7.7% year over year.
• The company declared a quarterly dividend of $0.47 per share, equivalent to an annualized $1.88 payout and a 2.2% yield. Analysts remain mixed, with a consensus “Hold” rating and an average price target of $98.83.

Pzena Investment Management LLC purchased a new position in Spectrum Brands Holdings Inc. (NYSE:SPB - Free Report) during the second quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The fund purchased 2,420,808 shares of the company's stock, valued at approximately $207,584,000. Pzena Investment Management LLC owned about 10.53% of Spectrum Brands as of its most recent filing with the Securities and Exchange Commission.

A number of other hedge funds and other institutional investors also recently made changes to their positions in SPB. Northwestern Mutual Wealth Management Co. increased its holdings in Spectrum Brands by 374,119.1% during the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 2,196,666 shares of the company's stock worth $129,779,000 after buying an additional 2,196,079 shares during the last quarter. BlackRock Inc. bought a new stake in Spectrum Brands in the second quarter worth about $166,197,000. Alberta Investment Management Corp purchased a new position in Spectrum Brands in the second quarter valued at about $46,353,000. Callodine Capital Management LP boosted its stake in Spectrum Brands by 20.4% in the fourth quarter. Callodine Capital Management LP now owns 2,065,216 shares of the company's stock valued at $122,013,000 after acquiring an additional 350,261 shares during the last quarter. Finally, Balyasny Asset Management L.P. bought a new position in shares of Spectrum Brands during the 2nd quarter valued at approximately $15,409,000.

Spectrum Brands Price Performance

Shares of NYSE:SPB opened at $87.43 on Tuesday. The company has a quick ratio of 1.61, a current ratio of 2.41 and a debt-to-equity ratio of 0.33. The firm has a market capitalization of $2.01 billion, a PE ratio of 26.66, a P/E/G ratio of 2.84 and a beta of 0.63. Spectrum Brands Holdings Inc. has a twelve month low of $49.99 and a twelve month high of $99.06. The company has a 50-day moving average price of $86.44 and a two-hundred day moving average price of $80.36.

Spectrum Brands (NYSE:SPB - Get Free Report) last posted its earnings results on Friday, August 7th. The company reported $2.79 earnings per share for the quarter, topping the consensus estimate of $1.46 by $1.33. The firm had revenue of $753.30 million during the quarter, compared to the consensus estimate of $732.19 million. Spectrum Brands had a net margin of 2.76% and a return on equity of 10.06%. The company's revenue was up 7.7% on a year-over-year basis. During the same quarter last year, the company earned $1.24 earnings per share. Equities analysts forecast that Spectrum Brands Holdings Inc. will post 6.38 EPS for the current year.

Spectrum Brands Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, September 22nd. Shareholders of record on Tuesday, August 25th will be issued a dividend of $0.47 per share. The ex-dividend date of this dividend is Tuesday, August 25th. This represents a $1.88 dividend on an annualized basis and a yield of 2.2%. Spectrum Brands's payout ratio is presently 57.32%.

Insider Activity

In related news, CEO David M. Maura bought 2,500 shares of the company's stock in a transaction on Wednesday, May 20th. The shares were purchased at an average price of $72.85 per share, for a total transaction of $182,125.00. Following the completion of the transaction, the chief executive officer directly owned 790,708 shares in the company, valued at approximately $57,603,077.80. The trade was a 0.32% increase in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. 4.50% of the stock is currently owned by corporate insiders.

Analysts Set New Price Targets

SPB has been the subject of several research analyst reports. Weiss Ratings lowered shares of Spectrum Brands from a "hold (c+)" rating to a "hold (c)" rating in a research note on Tuesday, August 11th. Deutsche Bank Aktiengesellschaft reiterated a "hold" rating and issued a $96.00 price objective on shares of Spectrum Brands in a research note on Monday, August 10th. Wells Fargo & Company increased their price objective on Spectrum Brands from $85.00 to $90.00 and gave the company an "equal weight" rating in a report on Monday, August 10th. Oppenheimer raised their target price on Spectrum Brands from $85.00 to $100.00 and gave the stock an "outperform" rating in a research report on Monday, August 10th. Finally, Monness Crespi & Hardt boosted their target price on Spectrum Brands from $86.00 to $105.00 and gave the company a "buy" rating in a research note on Monday, August 10th. Three research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company. According to data from MarketBeat.com, the company has a consensus rating of "Hold" and a consensus price target of $98.83.

Spectrum Brands Company Profile

Spectrum Brands Holdings, Inc is a global consumer products company that develops and markets a diverse portfolio of branded household and personal care products. Organized into four principal business segments—Hardware & Home Improvement, Home & Garden, Pet, and Appliances & Personal Care—the company offers a broad range of items including security and plumbing solutions, small electric appliances, grooming tools, and pet care accessories. Its hardware division features well-known brands such as Kwikset, Baldwin and Pfister, while the home appliance segment is anchored by names like Russell Hobbs and Remington.

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