Newell Brands (NASDAQ:NWL) Shares Down 5.2% After Analyst Downgrade

Key Points

• Newell Brands shares fell 5.2% to about $5.65 after Citigroup cut its price target from $6.00 to $5.50 while maintaining a neutral rating.
• Analyst views remain mixed, with the stock carrying a consensus “Hold” rating and an average price target of $6.62; targets range from $5.00 to $11.00.
• The company matched quarterly earnings expectations at $0.20 per share and reported $1.87 billion in revenue, up 3.7% year over year. Newell also maintains a quarterly dividend of $0.07, implying a 4.9% annualized yield.

Shares of Newell Brands Inc. (NASDAQ:NWL - Get Free Report) dropped 5.2% during trading on Tuesday after Citigroup lowered their price target on the stock from $6.00 to $5.50. Citigroup currently has a neutral rating on the stock. Newell Brands traded as low as $5.67 and last traded at $5.6530. Approximately 583,385 shares were traded during trading, a decline of 92% from the average session volume of 7,602,296 shares. The stock had previously closed at $5.96.

A number of other analysts also recently commented on the company. JPMorgan Chase & Co. upped their price objective on Newell Brands from $5.00 to $7.00 and gave the stock an "overweight" rating in a report on Thursday, July 16th. Weiss Ratings cut Newell Brands from a "sell (d)" rating to a "sell (d-)" rating in a report on Thursday, October 8th. Royal Bank Of Canada boosted their price target on Newell Brands from $4.00 to $5.00 and gave the company a "sector perform" rating in a research report on Monday, August 3rd. Morgan Stanley restated an "underweight" rating and set a $5.75 price target on shares of Newell Brands in a research note on Thursday, August 6th. Finally, Canaccord Genuity Group boosted their target price on Newell Brands from $9.00 to $11.00 and gave the stock a "buy" rating in a report on Monday, August 3rd. One research analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating, four have issued a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat, the company presently has an average rating of "Hold" and a consensus price target of $6.62.

Insider Buying and Selling

In related news, insider Bradford Turner sold 100,000 shares of the business's stock in a transaction that occurred on Thursday, August 6th. The stock was sold at an average price of $6.16, for a total transaction of $616,000.00. Following the transaction, the insider directly owned 433,398 shares of the company's stock, valued at approximately $2,669,731.68. The trade was a 18.75% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Company insiders own 1.64% of the company's stock.

Institutional Trading of Newell Brands

A number of hedge funds have recently made changes to their positions in NWL. Kestra Advisory Services LLC raised its holdings in Newell Brands by 21.7% in the third quarter. Kestra Advisory Services LLC now owns 49,918 shares of the company's stock valued at $264,000 after acquiring an additional 8,896 shares in the last quarter. Commonwealth Equity Services LLC grew its holdings in Newell Brands by 3.9% during the 3rd quarter. Commonwealth Equity Services LLC now owns 182,600 shares of the company's stock worth $964,000 after acquiring an additional 6,866 shares in the last quarter. Compass Financial Management LLC acquired a new position in Newell Brands during the 3rd quarter worth $390,000. State of Wyoming bought a new stake in shares of Newell Brands in the 3rd quarter worth about $60,000. Finally, Choreo LLC bought a new stake in shares of Newell Brands in the 3rd quarter worth about $87,000. Hedge funds and other institutional investors own 92.50% of the company's stock.

Newell Brands Price Performance

The company has a market cap of $2.43 billion, a P/E ratio of -7.40, a P/E/G ratio of 1.29 and a beta of 0.88. The company's 50-day moving average price is $5.67 and its two-hundred day moving average price is $4.84. The company has a current ratio of 1.11, a quick ratio of 0.59 and a debt-to-equity ratio of 1.85.

Newell Brands (NASDAQ:NWL - Get Free Report) last issued its quarterly earnings results on Friday, October 30th. The company reported $0.20 EPS for the quarter, hitting the consensus estimate of $0.20. The business had revenue of $1.87 billion for the quarter, compared to analysts' expectations of $1.86 billion. Newell Brands had a negative net margin of 3.05% and a positive return on equity of 12.31%. The company's quarterly revenue was up 3.7% compared to the same quarter last year. During the same quarter last year, the company posted $0.17 earnings per share. As a group, sell-side analysts expect that Newell Brands Inc. will post 0.76 earnings per share for the current year.

Newell Brands Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Tuesday, September 15th. Stockholders of record on Monday, August 31st were given a $0.07 dividend. The ex-dividend date was Monday, August 31st. This represents a $0.28 annualized dividend and a dividend yield of 4.9%. Newell Brands's dividend payout ratio (DPR) is presently -36.36%.

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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