Newell Brands Sees Unusually Large Options Volume (NASDAQ:NWL)

Key Points

• Unusual options activity: Investors purchased 63,054 Newell Brands call options, more than 40 times the average volume of 1,522 contracts.
• Stock and financial performance: NWL shares fell to $5.08, while the company reported quarterly EPS of $0.42, beating estimates of $0.20, and revenue of $1.99 billion, up 3% year over year.
• Mixed analyst sentiment: Analysts have an average “Hold” rating and a $6.66 price target, despite several recent target-price increases. Newell also pays a quarterly dividend of $0.07, representing a 5.5% yield.

Newell Brands Inc. (NASDAQ:NWL - Get Free Report) was the recipient of some unusual options trading activity on Thursday. Investors purchased 63,054 call options on the company. This is an increase of 4,043% compared to the average volume of 1,522 call options.

Newell Brands Stock Performance

Shares of NWL stock traded down $0.13 during trading on Thursday, reaching $5.08. 12,522,290 shares of the company's stock were exchanged, compared to its average volume of 7,570,058. The company has a quick ratio of 0.59, a current ratio of 1.11 and a debt-to-equity ratio of 1.85. The stock has a market capitalization of $2.16 billion, a PE ratio of -9.58, a PEG ratio of 1.32 and a beta of 0.88. Newell Brands has a twelve month low of $3.07 and a twelve month high of $7.13. The firm's fifty day moving average price is $5.71 and its 200-day moving average price is $4.82.

Newell Brands (NASDAQ:NWL - Get Free Report) last posted its earnings results on Friday, July 31st. The company reported $0.42 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.20 by $0.22. Newell Brands had a negative net margin of 3.05% and a positive return on equity of 12.31%. The company had revenue of $1.99 billion during the quarter, compared to analysts' expectations of $1.98 billion. During the same quarter last year, the company posted $0.24 EPS. Newell Brands's quarterly revenue was up 3.0% compared to the same quarter last year. Newell Brands has set its Q3 2026 guidance at 0.180-0.200 EPS and its FY 2026 guidance at 0.730-0.770 EPS. As a group, sell-side analysts anticipate that Newell Brands will post 0.76 EPS for the current year.

Newell Brands Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Tuesday, September 15th. Investors of record on Monday, August 31st were paid a $0.07 dividend. The ex-dividend date of this dividend was Monday, August 31st. This represents a $0.28 annualized dividend and a dividend yield of 5.5%. Newell Brands's payout ratio is currently -52.83%.

Wall Street Analyst Weigh In

Several analysts have commented on NWL shares. Canaccord Genuity Group raised their target price on shares of Newell Brands from $9.00 to $11.00 and gave the stock a "buy" rating in a report on Monday, August 3rd. Deutsche Bank Aktiengesellschaft reissued a "hold" rating and set a $6.00 price objective on shares of Newell Brands in a research report on Monday, August 3rd. JPMorgan Chase & Co. raised their price objective 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. Royal Bank Of Canada boosted their price objective on shares of Newell Brands from $4.00 to $5.00 and gave the company a "sector perform" rating in a research report on Monday, August 3rd. Finally, Citigroup upped their target price on shares of Newell Brands from $5.50 to $6.00 and gave the stock a "neutral" rating in a research note on Tuesday, August 4th. One equities research analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating, four have assigned a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat, Newell Brands has an average rating of "Hold" and an average target price of $6.66.

Insider Buying and Selling

In related news, insider Bradford Turner sold 100,000 shares of the company's stock in a transaction dated Thursday, August 6th. The stock was sold at an average price of $6.16, for a total value of $616,000.00. Following the completion of the sale, the insider owned 433,398 shares in the company, valued at approximately $2,669,731.68. This represents a 18.75% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this link. Corporate insiders own 1.64% of the company's stock.

Hedge Funds Weigh In On Newell Brands

A number of hedge funds have recently bought and sold shares of the company. BlackRock Inc. acquired a new stake in Newell Brands in the second quarter worth $436,133,000. Pzena Investment Management LLC bought a new position in Newell Brands during the second quarter valued at about $294,663,000. Rubric Capital Management LP increased its stake in shares of Newell Brands by 17.4% during the 1st quarter. Rubric Capital Management LP now owns 15,257,431 shares of the company's stock worth $52,333,000 after purchasing an additional 2,257,431 shares during the last quarter. Primecap Management Co. CA purchased a new position in shares of Newell Brands during the 2nd quarter valued at $36,003,000. Finally, Bank of New York Mellon Corp bought a new position in Newell Brands during the second quarter worth about $15,135,000. Institutional investors own 92.50% of the company's stock.

About Newell Brands

Newell Brands Inc is a global consumer products company that designs, manufactures and markets products used in homes, workplaces and outdoor settings. Its portfolio includes well-known brands such as Rubbermaid, Sharpie, Graco, Coleman, Yankee Candle, Crock-Pot, Mr. Coffee, FoodSaver, Calphalon, Elmer's and Sistema.

The company's products span food and home storage, cookware and small kitchen appliances, writing instruments and other learning supplies, baby and parenting products, outdoor and recreation equipment, home fragrance, and commercial products.

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