Newell Brands Target of Unusually High Options Trading (NASDAQ:NWL)

Key Points

• Unusually heavy options activity hit Newell Brands, with traders buying 24,886 call options on Wednesday—about 1,388% above the average volume.
• Analyst sentiment is mixed but generally cautious: the stock has a Hold consensus rating, with an average price target of $4.94, while recent moves included both target increases and decreases.
• Newell Brands reported quarterly results that beat EPS and revenue estimates, and the company also announced a $0.07 quarterly dividend yielding about 6.1%.

Newell Brands Inc. (NASDAQ:NWL - Get Free Report) saw some unusual options trading on Wednesday. Traders purchased 24,886 call options on the company. This is an increase of approximately 1,388% compared to the average volume of 1,672 call options.

Analyst Upgrades and Downgrades

NWL has been the topic of several recent analyst reports. Royal Bank Of Canada set a $4.00 target price on Newell Brands in a report on Thursday, April 9th. UBS Group raised their target price on Newell Brands from $3.75 to $4.25 and gave the stock a "neutral" rating in a research report on Monday, May 4th. Deutsche Bank Aktiengesellschaft lowered their price target on Newell Brands from $5.00 to $3.00 and set a "hold" rating for the company in a report on Monday, March 30th. Citigroup raised their price objective on shares of Newell Brands from $4.00 to $4.75 and gave the stock a "neutral" rating in a report on Monday, May 4th. Finally, Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Newell Brands in a research report on Friday, May 15th. Three analysts have rated the stock with a Buy rating, five have given a Hold rating and two have issued a Sell rating to the company's stock. Based on data from MarketBeat, Newell Brands presently has a consensus rating of "Hold" and an average target price of $4.94.

Insider Activity

In other news, insider Kristine Kay Malkoski sold 10,850 shares of the business's stock in a transaction dated Wednesday, May 27th. The stock was sold at an average price of $3.65, for a total transaction of $39,602.50. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Melanie Arlene Huet sold 91,000 shares of the company's stock in a transaction that occurred on Friday, May 8th. The stock was sold at an average price of $4.50, for a total transaction of $409,500.00. Following the sale, the insider owned 867 shares in the company, valued at $3,901.50. The trade was a 99.06% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders sold 202,750 shares of company stock worth $812,397. 1.64% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently modified their holdings of the stock. Quarry LP raised its stake in shares of Newell Brands by 139.3% during the fourth quarter. Quarry LP now owns 7,416 shares of the company's stock worth $28,000 after purchasing an additional 4,317 shares during the last quarter. Summit Securities Group LLC purchased a new position in Newell Brands in the 4th quarter valued at $30,000. Citizens Financial Group Inc. RI acquired a new position in Newell Brands in the 4th quarter valued at $39,000. HighPoint Advisor Group LLC acquired a new position in Newell Brands in the 4th quarter valued at $39,000. Finally, 111 Capital purchased a new position in Newell Brands during the 4th quarter worth $39,000. 92.50% of the stock is currently owned by hedge funds and other institutional investors.

Newell Brands Stock Performance

Shares of NWL stock traded up $0.18 during trading hours on Wednesday, hitting $4.59. The stock had a trading volume of 7,259,341 shares, compared to its average volume of 6,551,634. The stock's 50 day moving average is $3.88 and its 200 day moving average is $3.99. The firm has a market capitalization of $1.95 billion, a PE ratio of -6.83, a PEG ratio of 5.17 and a beta of 1.01. Newell Brands has a twelve month low of $3.07 and a twelve month high of $6.64. The company has a debt-to-equity ratio of 1.94, a current ratio of 1.04 and a quick ratio of 0.51.

Newell Brands (NASDAQ:NWL - Get Free Report) last issued its quarterly earnings data on Friday, May 1st. The company reported ($0.05) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.09) by $0.04. Newell Brands had a negative net margin of 3.91% and a positive return on equity of 8.89%. The company had revenue of $1.55 billion for the quarter, compared to the consensus estimate of $1.51 billion. During the same period last year, the firm posted ($0.01) EPS. Newell Brands's revenue for the quarter was down 1.1% on a year-over-year basis. Newell Brands has set its FY 2026 guidance at 0.560-0.600 EPS and its Q2 2026 guidance at 0.160-0.190 EPS. As a group, research analysts forecast that Newell Brands will post 0.57 earnings per share for the current fiscal year.

Newell Brands Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Monday, June 15th. Shareholders of record on Friday, May 29th will be paid a dividend of $0.07 per share. The ex-dividend date of this dividend is Friday, May 29th. This represents a $0.28 annualized dividend and a yield of 6.1%. Newell Brands's dividend payout ratio is currently -41.79%.

Newell Brands Company Profile

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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