Silgan (NYSE:SLGN) Shares Gap Down After Analyst Downgrade

Key Points

• Silgan shares opened lower after Citigroup cut its price target from $54 to $49, though the firm maintained a buy rating. The stock opened at $33.70 versus a previous close of $34.87.
• Analyst sentiment remains broadly positive, with a consensus “Moderate Buy” rating and average price target of $52.60; other firms have issued targets ranging from $47 to $59.
• Silgan reported quarterly earnings and revenue above analyst expectations, while institutional investors own 70.25% of the stock. The company also maintains a quarterly dividend of $0.21, equivalent to a 2.4% annual yield.

Silgan Holdings Inc. (NYSE:SLGN - Get Free Report) shares gapped down before the market opened on Monday after Citigroup lowered their price target on the stock from $54.00 to $49.00. The stock had previously closed at $34.87, but opened at $33.70. Citigroup currently has a buy rating on the stock. Silgan shares last traded at $34.8130, with a volume of 104,480 shares traded.

A number of other equities research analysts also recently commented on SLGN. Raymond James Financial reiterated an "outperform" rating and issued a $59.00 price objective on shares of Silgan in a report on Wednesday, July 15th. Royal Bank Of Canada raised Silgan from a "sector perform" rating to an "outperform" rating and upped their price target for the company from $51.00 to $58.00 in a research note on Thursday, August 13th. Weiss Ratings upgraded shares of Silgan from a "hold (c-)" rating to a "hold (c)" rating in a research report on Wednesday, July 15th. UBS Group set a $47.00 price objective on shares of Silgan and gave the stock a "neutral" rating in a research note on Thursday, July 30th. Finally, BMO Capital Markets initiated coverage on shares of Silgan in a report on Thursday, July 16th. They set an "outperform" rating and a $57.00 price objective for the company. One investment analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating and three have given a Hold rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $52.60.

Hedge Funds Weigh In On Silgan

Several institutional investors and hedge funds have recently modified their holdings of the business. Parkside Financial Bank & Trust increased its holdings in Silgan by 105.6% during the 2nd quarter. Parkside Financial Bank & Trust now owns 627 shares of the industrial products company's stock worth $29,000 after purchasing an additional 322 shares in the last quarter. Skylands Capital LLC lifted its holdings in shares of Silgan by 0.9% in the first quarter. Skylands Capital LLC now owns 43,300 shares of the industrial products company's stock valued at $1,680,000 after purchasing an additional 400 shares in the last quarter. Oregon Public Employees Retirement Fund boosted its position in shares of Silgan by 2.3% during the first quarter. Oregon Public Employees Retirement Fund now owns 17,953 shares of the industrial products company's stock worth $697,000 after buying an additional 400 shares during the period. State of Michigan Retirement System grew its holdings in shares of Silgan by 1.9% during the first quarter. State of Michigan Retirement System now owns 21,100 shares of the industrial products company's stock worth $819,000 after buying an additional 400 shares in the last quarter. Finally, Allworth Financial LP acquired a new stake in Silgan in the 2nd quarter valued at approximately $28,000. 70.25% of the stock is currently owned by institutional investors and hedge funds.

Silgan Price Performance

The stock has a market cap of $3.68 billion, a P/E ratio of 13.63, a PEG ratio of 2.03 and a beta of 0.67. The company has a 50 day simple moving average of $40.15 and a 200 day simple moving average of $40.69. The company has a current ratio of 1.27, a quick ratio of 0.80 and a debt-to-equity ratio of 1.54.

Silgan (NYSE:SLGN - Get Free Report) last announced its quarterly earnings data on Wednesday, July 29th. The industrial products company reported $0.98 EPS for the quarter, topping analysts' consensus estimates of $0.96 by $0.02. Silgan had a net margin of 4.05% and a return on equity of 16.74%. The business had revenue of $1.64 billion for the quarter, compared to analyst estimates of $1.62 billion. During the same quarter in the previous year, the firm posted $1.01 earnings per share. The firm's revenue for the quarter was up 6.8% on a year-over-year basis. Silgan has set its FY 2026 guidance at 3.730-3.930 EPS and its Q3 2026 guidance at 1.210-1.310 EPS. Sell-side analysts forecast that Silgan Holdings Inc. will post 3.82 earnings per share for the current fiscal year.

Silgan Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Tuesday, September 15th. Investors of record on Tuesday, September 1st were given a $0.21 dividend. The ex-dividend date of this dividend was Tuesday, September 1st. This represents a $0.84 dividend on an annualized basis and a dividend yield of 2.4%. Silgan's payout ratio is currently 32.94%.

Silgan Company Profile

Silgan Holdings Inc NYSE: SLGN is a manufacturer of rigid packaging for consumer goods. The company produces metal containers, plastic containers, closures and dispensing systems used to package food, pet food, beverages, household products, personal-care items, chemicals, paints and other products.

Silgan's business is organized around metal containers, closures and dispensing systems. Its products include steel cans, plastic containers, caps, lids, pumps, sprayers and other dispensing components.

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