Greif (NYSE:GEF) Announces Earnings Results

Key Points

• Greif reported quarterly EPS of $1.61, substantially ahead of the $1.11 analyst consensus estimate. The company posted a 7.27% net margin and 7.50% return on equity.
• Shares rose 3.5% to $83.13, near their 52-week high of $83.39, following the earnings release.
• Greif increased its quarterly dividend from $0.56 to $0.62 per share, implying an annualized dividend of $2.48 and a 3.0% yield. Analysts remain cautious, with a consensus “Reduce” rating and a $74.25 target price.

Greif (NYSE:GEF - Get Free Report) posted its quarterly earnings data on Tuesday. The industrial products company reported $1.61 earnings per share for the quarter, beating analysts' consensus estimates of $1.11 by $0.50, Zacks reports. Greif had a net margin of 7.27% and a return on equity of 7.50%.

Greif Trading Up 3.5%

GEF traded up $2.80 on Tuesday, reaching $83.13. 212,562 shares of the company traded hands, compared to its average volume of 222,352. Greif has a one year low of $55.75 and a one year high of $83.39. The firm has a fifty day simple moving average of $69.96 and a two-hundred day simple moving average of $69.78. The company has a market cap of $3.84 billion, a P/E ratio of 31.85, a price-to-earnings-growth ratio of 0.85 and a beta of 0.76. The company has a quick ratio of 1.00, a current ratio of 1.28 and a debt-to-equity ratio of 0.24.

Greif Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Wednesday, July 1st. Investors of record on Wednesday, June 17th were paid a $0.62 dividend. The ex-dividend date of this dividend was Wednesday, June 17th. This represents a $2.48 annualized dividend and a yield of 3.0%. This is a boost from Greif's previous quarterly dividend of $0.56. Greif's payout ratio is 95.02%.

Insider Buying and Selling

In other Greif news, SVP Timothy Bergwall sold 2,000 shares of the company's stock in a transaction dated Friday, July 10th. The shares were sold at an average price of $73.14, for a total value of $146,280.00. Following the transaction, the senior vice president directly owned 63,832 shares in the company, valued at $4,668,672.48. This represents a 3.04% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders have sold 6,000 shares of company stock valued at $412,120. 7.70% of the stock is owned by corporate insiders.

Institutional Trading of Greif

Large investors have recently modified their holdings of the company. Invesco Ltd. increased its holdings in Greif by 119.1% during the 4th quarter. Invesco Ltd. now owns 325,951 shares of the industrial products company's stock worth $22,067,000 after purchasing an additional 177,203 shares during the period. Vident Advisory LLC purchased a new stake in shares of Greif in the 4th quarter worth $879,000. VARCOV Co. bought a new position in shares of Greif during the 4th quarter worth $237,000. Odyssean LLC bought a new position in shares of Greif during the 4th quarter worth $209,000. Finally, Man Group plc purchased a new position in shares of Greif during the fourth quarter valued at $201,000. Hedge funds and other institutional investors own 45.74% of the company's stock.

Wall Street Analysts Forecast Growth

GEF has been the topic of a number of recent analyst reports. Wells Fargo & Company increased their price objective on shares of Greif from $70.00 to $74.00 and gave the stock an "equal weight" rating in a research report on Wednesday, July 15th. Weiss Ratings upgraded Greif from a "hold (c-)" rating to a "hold (c)" rating in a research report on Wednesday, June 17th. Bank of America cut Greif from a "neutral" rating to an "underperform" rating and set a $70.00 target price on the stock. in a research note on Tuesday, July 14th. Zacks Research upgraded Greif from a "strong sell" rating to a "hold" rating in a report on Thursday, May 21st. Finally, Truist Financial decreased their price target on Greif from $79.00 to $78.00 and set a "hold" rating for the company in a research note on Monday, May 4th. Four investment analysts have rated the stock with a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat.com, the company has an average rating of "Reduce" and a consensus target price of $74.25.

About Greif

Greif, Inc is a global leader in industrial packaging products and services, with a history dating back to its founding in 1877. Headquartered in Cleveland, Ohio, the company has evolved from a regional barrel and drum manufacturer into a diversified packaging provider serving a wide range of end markets. Greif's longstanding heritage in container solutions has positioned it as a trusted partner for customers seeking reliable, high-quality packaging options.

The company's core business revolves around the design, manufacture and sale of industrial packaging products, including steel, plastic and fiber drums; intermediate bulk containers (IBCs); safety closures; rigid, flexible and reconditioned packaging; containerboard and protective packaging.

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