AptarGroup (NYSE:ATR) Shares Gap Up on Earnings Beat

Key Points

• AptarGroup beat quarterly expectations: Earnings per share came in at $1.52 versus the $1.47 consensus estimate, while revenue reached $1.02 billion, exceeding forecasts of about $981 million and rising 6% year over year. Shares jumped from a $130.64 close to a $138.59 open.
• Dividend increased: AptarGroup raised its quarterly dividend from $0.48 to $0.50 per share, equivalent to an annualized $2.00 payout and a yield of roughly 1.4%.
• Analyst sentiment is moderately positive: Six analysts rate the stock a Buy and four rate it a Hold, producing a “Moderate Buy” consensus and an average price target of $164.14, although recent insider selling may temper investor sentiment.

Shares of AptarGroup, Inc. (NYSE:ATR - Get Free Report) gapped up prior to trading on Friday following a better than expected earnings announcement. The stock had previously closed at $130.64, but opened at $138.59. AptarGroup shares last traded at $138.91, with a volume of 62,550 shares changing hands.

The industrial products company reported $1.52 earnings per share for the quarter, topping the consensus estimate of $1.47 by $0.05. The firm had revenue of $1.02 billion for the quarter, compared to the consensus estimate of $980.76 million. AptarGroup had a net margin of 9.22% and a return on equity of 13.31%. The company's revenue for the quarter was up 6.0% on a year-over-year basis. During the same period last year, the firm posted $1.62 earnings per share.

AptarGroup Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, December 3rd. Stockholders of record on Thursday, November 12th will be paid a $0.50 dividend. This is a positive change from AptarGroup's previous quarterly dividend of $0.48. The ex-dividend date of this dividend is Thursday, November 12th. This represents a $2.00 dividend on an annualized basis and a dividend yield of 1.4%. AptarGroup's payout ratio is presently 34.72%.

More AptarGroup News

Here are the key news stories impacting AptarGroup this week:

• Positive Sentiment: Quarterly results exceeded expectations: AptarGroup reported adjusted earnings of $1.52 per share, above the $1.46–$1.47 consensus estimates, while revenue rose 6.0% year over year to approximately $1.02 billion, surpassing forecasts near $981 million. AptarGroup Q3 Earnings and Revenues Beat Estimates
• Positive Sentiment: Dividend increased: The company raised its quarterly dividend 4.2%, from $0.48 to $0.50 per share. The new annualized payout is $2.00 per share, representing a yield of roughly 1.5% and signaling continued confidence in cash returns. Aptar Increases Quarterly Dividend to $0.50 Per Share
• Neutral Sentiment: Profitability was mixed: Although adjusted earnings beat estimates, reported performance was weaker than last year. Gross profit increased 2.7% to $372.9 million, but operating profit declined 1.4% to $135.0 million, while net income and diluted EPS fell sharply year over year. AptarGroup Releases Q3 2026 Earnings
• Negative Sentiment: Insider selling may weigh on sentiment: Data cited in the report showed 13 insider sales and no purchases during the past six months, including sales by senior executives. This may raise caution about management’s view of the stock’s valuation, although insider transactions do not necessarily reflect operating expectations.

Analyst Ratings Changes

A number of brokerages have issued reports on ATR. Weiss Ratings reiterated a "hold (c)" rating on shares of AptarGroup in a research note on Monday, September 21st. Deutsche Bank Aktiengesellschaft assumed coverage on shares of AptarGroup in a report on Wednesday, October 7th. They issued a "buy" rating and a $150.00 price objective on the stock. Bank of America upgraded AptarGroup from a "neutral" rating to a "buy" rating and set a $173.00 target price for the company in a research note on Tuesday, July 14th. Raymond James Financial restated an "outperform" rating and set a $160.00 price target on shares of AptarGroup in a research note on Wednesday, July 15th. Finally, UBS Group assumed coverage on AptarGroup in a report on Friday, October 9th. They issued a "neutral" rating and a $135.00 price objective for the company. Six investment analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average price target of $164.14.

Insider Activity

In other news, insider Hedi Tlili sold 8,854 shares of the firm's stock in a transaction on Monday, August 3rd. The stock was sold at an average price of $135.00, for a total value of $1,195,290.00. Following the completion of the transaction, the insider owned 15,379 shares in the company, valued at $2,076,165. This trade represents a 36.54% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, CEO Stephan B. Tanda sold 9,838 shares of the company's stock in a transaction dated Monday, August 3rd. The shares were sold at an average price of $136.16, for a total transaction of $1,339,542.08. Following the completion of the sale, the chief executive officer directly owned 238,729 shares in the company, valued at $32,505,340.64. This trade represents a 3.96% decrease in their position. The SEC filing for this sale provides additional information. In the last three months, insiders have sold 23,197 shares of company stock valued at $3,134,828. 0.73% of the stock is owned by insiders.

Institutional Trading of AptarGroup

Several institutional investors and hedge funds have recently made changes to their positions in ATR. ProShare Advisors LLC raised its position in AptarGroup by 1.0% in the third quarter. ProShare Advisors LLC now owns 211,926 shares of the industrial products company's stock valued at $25,677,000 after purchasing an additional 2,192 shares during the period. Vise Technologies Inc. acquired a new stake in AptarGroup in the third quarter valued at $306,000. State of Wyoming bought a new position in AptarGroup during the 3rd quarter valued at $66,000. Choreo LLC raised its stake in shares of AptarGroup by 23.9% in the 3rd quarter. Choreo LLC now owns 2,699 shares of the industrial products company's stock valued at $327,000 after purchasing an additional 520 shares in the last quarter. Finally, Apollon Wealth Management LLC bought a new position in shares of AptarGroup during the third quarter worth about $213,000. 88.52% of the stock is currently owned by hedge funds and other institutional investors.

AptarGroup Price Performance

The stock has a market cap of $8.88 billion, a price-to-earnings ratio of 25.26, a PEG ratio of 3.94 and a beta of 0.34. The company has a 50 day simple moving average of $125.79 and a 200-day simple moving average of $126.95. The company has a quick ratio of 1.10, a current ratio of 1.61 and a debt-to-equity ratio of 0.42.

AptarGroup Company Profile

AptarGroup, Inc NYSE: ATR develops and manufactures dispensing, sealing and delivery systems for the pharmaceutical, beauty, personal care, food and beverage markets. Its products are designed to control, protect and dispense a wide range of liquids, creams, lotions, fragrances and other formulations.

The company's offerings include pumps, valves, closures, aerosol systems and other dispensing components, as well as drug-delivery technologies. Through its pharmaceutical business, Aptar supports nasal, pulmonary, ophthalmic, dermal and injectable applications, serving pharmaceutical and biotechnology companies with components and systems used in prescription, over-the-counter and consumer health products.

Aptar serves customers internationally through manufacturing, research and development and commercial operations across North America, Europe, Asia and other global markets.

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