Greif (NYSE:GEF) Reaches New 12-Month High Following Earnings Beat

Key Points

• Greif shares hit a new 52-week high after the company reported quarterly EPS of $1.61, beating estimates by $0.50, while revenue rose 3.5% year over year to $1.17 billion.
• The company increased its quarterly dividend to $0.62 per share, equating to a $2.48 annualized payout and a 3.0% yield.
• Despite the earnings beat, analyst sentiment remains cautious: Greif has a consensus “Reduce” rating and an average price target of $74.25, below its trading price near $83.

Greif, Inc. (NYSE:GEF - Get Free Report)'s stock price reached a new 52-week high during trading on Wednesday following a stronger than expected earnings report. The company traded as high as $83.39 and last traded at $83.1330, with a volume of 212844 shares. The stock had previously closed at $80.33.

The industrial products company reported $1.61 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.11 by $0.50. Greif had a return on equity of 7.50% and a net margin of 7.27%.The business had revenue of $1.17 billion for the quarter, compared to the consensus estimate of $1.12 billion. During the same period in the prior year, the business posted $0.86 earnings per share. The company's quarterly revenue was up 3.5% compared to the same quarter last year.

Greif Increases Dividend

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

Analyst Upgrades and Downgrades

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

Insider Buying and Selling at Greif

In related news, SVP Timothy Bergwall sold 2,000 shares of the firm's stock in a transaction that occurred 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 completion of the sale, the senior vice president directly owned 63,832 shares of the company's stock, valued at approximately $4,668,672.48. This trade represents a 3.04% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through 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. Corporate insiders own 7.70% of the company's stock.

Hedge Funds Weigh In On Greif

Several hedge funds have recently bought and sold shares of GEF. Wedge Capital Management L L P NC lifted its position in shares of Greif by 10.8% during the second quarter. Wedge Capital Management L L P NC now owns 27,528 shares of the industrial products company's stock worth $2,051,000 after purchasing an additional 2,694 shares during the last quarter. Readystate Asset Management LP bought a new position in shares of Greif in the first quarter worth about $871,000. Healthcare of Ontario Pension Plan Trust Fund purchased a new position in Greif in the 1st quarter worth about $1,853,000. Sei Investments Co. increased its stake in Greif by 61.5% in the 1st quarter. Sei Investments Co. now owns 15,165 shares of the industrial products company's stock worth $1,017,000 after buying an additional 5,775 shares during the period. Finally, Principal Financial Group Inc. lifted its holdings in Greif by 5.9% during the 1st quarter. Principal Financial Group Inc. now owns 90,939 shares of the industrial products company's stock valued at $6,099,000 after buying an additional 5,071 shares in the last quarter. Institutional investors own 45.74% of the company's stock.

Greif Stock Up 3.5%

The company has a market cap of $3.84 billion, a P/E ratio of 31.85, a price-to-earnings-growth ratio of 0.87 and a beta of 0.76. The company has a debt-to-equity ratio of 0.24, a quick ratio of 1.00 and a current ratio of 1.28. The business's fifty day moving average is $70.40 and its two-hundred day moving average is $69.87.

Greif Company Profile

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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