Newell Brands Inc. (NASDAQ:NWL) Given Average Rating of "Hold" by Brokerages

Key Points

• Analysts maintain a cautious outlook: Newell Brands has an average “Hold” rating from nine analysts, with two sells, four holds, and three buys. The average 12-month price target is $5.38, while individual targets range from $3.50 to $9.00.
• Recent results exceeded expectations: The company reported quarterly EPS of -$0.05 versus consensus of -$0.09 and revenue of $1.55 billion, above estimates of $1.51 billion. Revenue nevertheless declined 1.1% year over year, and the company remains unprofitable on a net-margin basis.
• Newell offers a sizable dividend but faces insider selling: Its quarterly dividend of $0.07 equates to a $0.28 annual payout and a 5.4% yield. Insiders sold 202,750 shares worth about $812,396 over the past 90 days, while institutional investors own 92.5% of the stock.

Newell Brands Inc. (NASDAQ:NWL - Get Free Report) has received an average rating of "Hold" from the nine analysts that are currently covering the stock, MarketBeat reports. Two investment analysts have rated the stock with a sell recommendation, four have assigned a hold recommendation and three have assigned a buy recommendation to the company. The average 12-month target price among brokers that have issued a report on the stock in the last year is $5.3750.

Several equities analysts have weighed in on the company. UBS Group raised their price objective on Newell Brands from $4.25 to $4.75 and gave the company a "neutral" rating in a research note on Thursday, July 16th. Morgan Stanley lowered shares of Newell Brands from an "equal weight" rating to an "underweight" rating and reduced their target price for the stock from $4.00 to $3.50 in a research note on Wednesday, May 20th. Citigroup reiterated a "neutral" rating on shares of Newell Brands in a report on Tuesday, July 14th. Canaccord Genuity Group raised their price target on shares of Newell Brands from $8.00 to $9.00 and gave the company a "buy" rating in a research report on Thursday, April 16th. Finally, JPMorgan Chase & Co. boosted their price target on shares of Newell Brands from $5.00 to $7.00 and gave the stock an "overweight" rating in a report on Thursday, July 16th.

Newell Brands Price Performance

NWL stock opened at $5.14 on Friday. The company has a debt-to-equity ratio of 1.94, a quick ratio of 0.51 and a current ratio of 1.04. The business has a 50-day simple moving average of $4.84 and a two-hundred day simple moving average of $4.39. The company has a market capitalization of $2.18 billion, a P/E ratio of -7.67, a price-to-earnings-growth ratio of 6.35 and a beta of 0.87. Newell Brands has a 52-week low of $3.07 and a 52-week high of $6.64.

Newell Brands (NASDAQ:NWL - Get Free Report) last posted its earnings results on Friday, May 1st. The company reported ($0.05) earnings per share for the quarter, beating analysts' consensus estimates of ($0.09) by $0.04. The company had revenue of $1.55 billion for the quarter, compared to analyst estimates of $1.51 billion. Newell Brands had a positive return on equity of 8.89% and a negative net margin of 3.91%.The company's revenue for the quarter was down 1.1% on a year-over-year basis. During the same quarter last year, the company earned ($0.01) earnings per share. Research analysts expect that Newell Brands will post 0.57 EPS for the current fiscal year.

Newell Brands Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Monday, June 15th. Shareholders of record on Friday, May 29th were paid a $0.07 dividend. The ex-dividend date was Friday, May 29th. This represents a $0.28 annualized dividend and a yield of 5.4%. Newell Brands's dividend payout ratio (DPR) is -41.79%.

Insiders Place Their Bets

In other news, insider Bradford R. Turner sold 100,000 shares of the business's stock in a transaction that occurred on Friday, May 22nd. The stock was sold at an average price of $3.60, for a total value of $360,000.00. Following the transaction, the insider owned 464,449 shares in the company, valued at $1,672,016.40. The trade was a 17.72% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider Kristine Kay Malkoski sold 10,850 shares of the business's stock in a transaction that occurred on Wednesday, May 27th. The stock was sold at an average price of $3.65, for a total value of $39,602.50. The SEC filing for this sale provides additional information. Insiders have sold a total of 202,750 shares of company stock valued at $812,396 in the last 90 days. 1.64% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the business. Intech Investment Management LLC boosted its holdings in shares of Newell Brands by 510.3% in the 4th quarter. Intech Investment Management LLC now owns 483,491 shares of the company's stock worth $1,799,000 after buying an additional 404,269 shares during the last quarter. Louisiana State Employees Retirement System bought a new position in Newell Brands during the first quarter valued at about $638,000. Pzena Investment Management LLC increased its holdings in Newell Brands by 5.0% during the fourth quarter. Pzena Investment Management LLC now owns 50,019,553 shares of the company's stock worth $186,073,000 after buying an additional 2,375,782 shares during the last quarter. Weiss Asset Management LP purchased a new stake in Newell Brands during the first quarter worth about $1,261,000. Finally, CastleKnight Management LP raised its position in Newell Brands by 397.9% in the fourth quarter. CastleKnight Management LP now owns 864,914 shares of the company's stock worth $3,217,000 after acquiring an additional 691,214 shares during the period. Hedge funds and other institutional investors own 92.50% of the company's stock.

About Newell Brands

Newell Brands Inc, trading on NASDAQ under the ticker NWL, is a global consumer goods company known for its diverse portfolio of household, commercial, and specialty products. Formed through the merger of Newell Rubbermaid and Jarden Corporation in 2016, the company traces its roots back to Newell Manufacturing, which was founded in 1903. Headquartered in Atlanta, Georgia, Newell Brands has built a reputation for widely recognized brands spanning multiple consumer categories.

The company's business activities are organized across several segments, including writing and creative expression, home solutions, commercial products, and outdoor recreation.

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