Greif (NYSE:GEF) Rating Lowered to "Underperform" at Bank of America

Key Points

• Bank of America downgraded Greif from “neutral” to “underperform” and kept a $70 price target, implying a slight downside from the prior close.
• Other analysts have also been cautious: recent moves included Wells Fargo cutting its target to $70 and several firms maintaining Hold or Sell-equivalent views. MarketBeat data shows a consensus rating of “Reduce” with an average target of $73.25.
• Greif’s latest earnings fell short of expectations, with EPS of $1.10 versus the $1.16 estimate and revenue of $1.07 billion versus $1.10 billion expected. The company also saw insider selling, including an SVP sale of 2,000 shares in July.

Greif (NYSE:GEF - Get Free Report) was downgraded by equities research analysts at Bank of America from a "neutral" rating to an "underperform" rating in a research note issued on Tuesday. They currently have a $70.00 target price on the industrial products company's stock. Bank of America's price target points to a potential downside of 1.90% from the stock's previous close.

Other equities analysts also recently issued research reports about the stock. Wells Fargo & Company cut their price target on shares of Greif from $76.00 to $70.00 and set an "equal weight" rating for the company in a report on Friday, March 20th. Weiss Ratings raised Greif from a "hold (c-)" rating to a "hold (c)" rating in a report on Wednesday, June 17th. Truist Financial dropped their price target on Greif from $79.00 to $78.00 and set a "hold" rating for the company in a research report on Monday, May 4th. Finally, Zacks Research raised Greif from a "strong sell" rating to a "hold" rating in a research note on Thursday, May 21st. Four analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat, Greif presently has a consensus rating of "Reduce" and an average price target of $73.25.

Greif Price Performance

Greif stock opened at $71.36 on Tuesday. The stock has a market capitalization of $3.29 billion, a PE ratio of 27.34, a price-to-earnings-growth ratio of 0.76 and a beta of 0.76. The company has a debt-to-equity ratio of 0.24, a current ratio of 1.28 and a quick ratio of 1.00. Greif has a 12 month low of $55.75 and a 12 month high of $77.14. The business has a 50 day simple moving average of $67.97 and a 200-day simple moving average of $69.30.

Greif (NYSE:GEF - Get Free Report) last released its earnings results on Wednesday, April 29th. The industrial products company reported $1.10 EPS for the quarter, missing the consensus estimate of $1.16 by ($0.06). Greif had a return on equity of 7.50% and a net margin of 7.27%.The firm had revenue of $1.07 billion during the quarter, compared to analyst estimates of $1.10 billion. During the same quarter last year, the business posted $1.19 EPS. The firm's revenue was down .5% on a year-over-year basis. Equities analysts predict that Greif will post 3.87 earnings per share for the current year.

Insider Activity

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

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the company. Ameriprise Financial Inc. raised its position in shares of Greif by 75.5% in the third quarter. Ameriprise Financial Inc. now owns 524,603 shares of the industrial products company's stock valued at $31,352,000 after buying an additional 225,659 shares during the last quarter. Invesco Ltd. lifted its stake in shares of 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. EVR Research LP purchased a new position in shares of Greif during the 4th quarter worth $11,848,000. Cubist Systematic Strategies LLC acquired a new stake in shares of Greif during the second quarter worth $6,052,000. Finally, Deprince Race & Zollo Inc. boosted its holdings in shares of Greif by 10.5% during the fourth quarter. Deprince Race & Zollo Inc. now owns 837,742 shares of the industrial products company's stock worth $56,715,000 after purchasing an additional 79,813 shares during the last quarter. Institutional investors and hedge funds own 45.74% of the company's stock.

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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