Spectrum Brands (NYSE:SPB) Shares Gap Down on Analyst Downgrade

Key Points

• Spectrum Brands shares fell after Wells Fargo cut its price target from $90 to $85 and maintained an Equal Weight rating. The stock opened at $76.20, down from its prior close of $78.32.
• Analyst sentiment remains mixed, with three Buy ratings and four Holds; the consensus rating is Hold with an average price target of $98.
• The company reported strong quarterly results, posting EPS of $2.79 versus the $1.46 consensus estimate and revenue of $753.3 million, up 7.7% year over year. Spectrum Brands also maintains a quarterly dividend of $0.47, representing a 2.5% annualized yield.

Shares of Spectrum Brands Holdings Inc. (NYSE:SPB - Get Free Report) gapped down prior to trading on Tuesday after Wells Fargo & Company lowered their price target on the stock from $90.00 to $85.00. The stock had previously closed at $78.32, but opened at $76.20. Wells Fargo & Company currently has an equal weight rating on the stock. Spectrum Brands shares last traded at $76.60, with a volume of 8,177 shares trading hands.

A number of other research firms have also recently commented on SPB. Weiss Ratings cut Spectrum Brands from a "hold (c+)" rating to a "hold (c)" rating in a research note on Tuesday, August 11th. Monness Crespi & Hardt increased their price objective on shares of Spectrum Brands from $86.00 to $105.00 and gave the company a "buy" rating in a research report on Monday, August 10th. Wall Street Zen raised shares of Spectrum Brands from a "hold" rating to a "buy" rating in a report on Saturday, September 5th. Deutsche Bank Aktiengesellschaft reissued a "hold" rating and set a $96.00 price target on shares of Spectrum Brands in a research report on Monday, August 10th. Finally, Royal Bank Of Canada cut Spectrum Brands from an "outperform" rating to a "sector perform" rating and upped their price objective for the company from $85.00 to $92.00 in a research report on Monday, August 10th. Three equities research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company. According to data from MarketBeat.com, the company presently has a consensus rating of "Hold" and a consensus target price of $98.00.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the business. Engineers Gate Manager LP bought a new position in Spectrum Brands in the 2nd quarter worth approximately $1,949,000. Integrated Wealth Concepts LLC purchased a new position in shares of Spectrum Brands in the second quarter worth $70,000. Squarepoint Ops LLC boosted its position in shares of Spectrum Brands by 2.5% during the second quarter. Squarepoint Ops LLC now owns 12,418 shares of the company's stock worth $1,065,000 after acquiring an additional 302 shares during the last quarter. Allworth Financial LP boosted its position in shares of Spectrum Brands by 65.2% during the second quarter. Allworth Financial LP now owns 337 shares of the company's stock worth $29,000 after acquiring an additional 133 shares during the last quarter. Finally, Nykredit A S purchased a new position in Spectrum Brands during the second quarter valued at $102,000.

Spectrum Brands Stock Performance

The company has a debt-to-equity ratio of 0.33, a quick ratio of 1.61 and a current ratio of 2.41. The company has a market capitalization of $1.76 billion, a P/E ratio of 23.39, a P/E/G ratio of 2.78 and a beta of 0.78. The business's fifty day simple moving average is $86.77 and its 200-day simple moving average is $83.10.

Spectrum Brands (NYSE:SPB - Get Free Report) last released its quarterly earnings data on Friday, August 7th. The company reported $2.79 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.46 by $1.33. Spectrum Brands had a return on equity of 10.06% and a net margin of 2.76%.The business had revenue of $753.30 million for the quarter, compared to the consensus estimate of $732.19 million. During the same quarter in the previous year, the company posted $1.24 EPS. The company's revenue was up 7.7% compared to the same quarter last year. As a group, equities analysts anticipate that Spectrum Brands Holdings Inc. will post 6.38 earnings per share for the current fiscal year.

Spectrum Brands Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Tuesday, September 22nd. Investors of record on Tuesday, August 25th were issued a $0.47 dividend. The ex-dividend date of this dividend was Tuesday, August 25th. This represents a $1.88 dividend on an annualized basis and a dividend yield of 2.5%. Spectrum Brands's dividend payout ratio (DPR) is presently 57.32%.

Spectrum Brands Company Profile

Spectrum Brands Holdings, Inc is a global consumer products company headquartered in Middleton, Wisconsin. The company develops, markets and distributes branded products for use in homes, gardens and by pet owners, selling through mass retailers, e-commerce channels, specialty stores and other retail outlets in North America and international markets.

Spectrum Brands' portfolio has historically included home and personal care products under brands such as Remington, Russell Hobbs, George Foreman and Black+Decker, as well as pet care products marketed under brands including Tetra, FURminator, Nature's Miracle and 8-in-1.

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