Newell Brands (NASDAQ:NWL) Shares Up 7.3% - Here's Why

Key Points

• Newell Brands shares increased by 7.3% during recent trading, reaching a last price of $5.86, but trading volume saw a significant decline of 94% from the average.
• Barclays raised their price target to $9.00 with an "overweight" rating, while other firms adjusted their targets, contributing to a consensus hold rating with an average target price of $7.44.
• The company announced a quarterly dividend of $0.07 per share, payable on September 15th, which represents a 4.7% dividend yield.

Newell Brands Inc. (NASDAQ:NWL - Get Free Report) shares were up 7.3% during mid-day trading on Monday . The stock traded as high as $5.75 and last traded at $5.86. Approximately 513,802 shares were traded during mid-day trading, a decline of 94% from the average daily volume of 9,072,243 shares. The stock had previously closed at $5.46.

Wall Street Analysts Forecast Growth

Several equities analysts recently issued reports on NWL shares. JPMorgan Chase & Co. decreased their target price on shares of Newell Brands from $8.00 to $7.00 and set an "overweight" rating for the company in a research note on Monday, August 4th. Royal Bank Of Canada reiterated a "sector perform" rating and issued a $9.00 target price on shares of Newell Brands in a research note on Monday, April 28th. UBS Group boosted their target price on shares of Newell Brands from $5.00 to $5.50 and gave the company a "neutral" rating in a research note on Thursday, July 17th. Truist Financial cut their price target on shares of Newell Brands from $17.00 to $8.00 and set a "buy" rating for the company in a report on Thursday, April 24th. Finally, Wall Street Zen raised shares of Newell Brands from a "sell" rating to a "hold" rating in a report on Sunday, May 4th. Four research analysts have rated the stock with a Buy rating and four have given a Hold rating to the company. According to data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus price target of $7.44.

Newell Brands Price Performance

The stock's 50-day moving average price is $5.54 and its 200 day moving average price is $5.81. The firm has a market capitalization of $2.42 billion, a price-to-earnings ratio of 9.98 and a beta of 0.96. The company has a quick ratio of 0.57, a current ratio of 1.12 and a debt-to-equity ratio of 1.68.

Newell Brands (NASDAQ:NWL - Get Free Report) last issued its earnings results on Friday, August 1st. The company reported $0.24 EPS for the quarter, meeting analysts' consensus estimates of $0.24. The business had revenue of $1.94 billion during the quarter, compared to analysts' expectations of $1.95 billion. Newell Brands had a negative net margin of 3.29% and a positive return on equity of 8.48%. The company's quarterly revenue was down 4.8% compared to the same quarter last year. During the same period in the prior year, the business earned $0.36 earnings per share. Newell Brands has set its FY 2025 guidance at 0.660-0.70 EPS. Q3 2025 guidance at 0.160-0.19 EPS. Equities research analysts expect that Newell Brands Inc. will post 0.72 earnings per share for the current fiscal year.

Newell Brands Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Monday, September 15th. Stockholders of record on Friday, August 29th will be given a $0.07 dividend. This represents a $0.28 dividend on an annualized basis and a dividend yield of 4.9%. The ex-dividend date is Friday, August 29th. Newell Brands's dividend payout ratio is -47.46%.

Insider Activity at Newell Brands

In other news, CEO Melanie Arlene Huet sold 8,800 shares of the stock in a transaction dated Tuesday, August 5th. The shares were sold at an average price of $5.11, for a total value of $44,968.00. Following the completion of the sale, the chief executive officer directly owned 52,007 shares in the company, valued at $265,755.77. This represents a 14.47% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. 0.71% of the stock is owned by company insiders.

Institutional Investors Weigh In On Newell Brands

Hedge funds and other institutional investors have recently bought and sold shares of the company. Castlekeep Investment Advisors LLC acquired a new stake in Newell Brands during the fourth quarter worth about $33,000. Farther Finance Advisors LLC increased its position in Newell Brands by 212.6% during the first quarter. Farther Finance Advisors LLC now owns 6,130 shares of the company's stock worth $38,000 after purchasing an additional 4,169 shares during the last quarter. Caitong International Asset Management Co. Ltd acquired a new stake in Newell Brands during the second quarter worth about $35,000. Parallel Advisors LLC increased its position in Newell Brands by 194.3% during the second quarter. Parallel Advisors LLC now owns 8,067 shares of the company's stock worth $44,000 after purchasing an additional 5,326 shares during the last quarter. Finally, Summit Global Investments acquired a new stake in Newell Brands during the second quarter worth about $54,000. 92.50% of the stock is currently owned by institutional investors and hedge funds.

Newell Brands Company Profile

Newell Brands Inc engages in the design, manufacture, sourcing, and distribution of consumer and commercial products worldwide. The company operates in three segments: Home and Commercial Solutions, Learning and Development, and Outdoor and Recreation. The Commercial Solutions segment provides commercial cleaning and maintenance solution products under the Rubbermaid, Rubbermaid Commercial Products, Mapa, and Spontex brands; closet and garage organization products; hygiene systems and material handling solutions; household products, such as kitchen appliances under the Crockpot, Mr.