Ranpak (NYSE:PACK) Cut to Sell at Wall Street Zen

Key Points

• Wall Street Zen downgraded Ranpak (PACK) from "hold" to "sell," joining a mixed set of analyst views while the consensus rating remains "Hold" with a $6.83 average price target.
• Ranpak missed quarterly expectations, reporting ($0.11) EPS vs. ($0.02) expected and slightly below-consensus revenue ($111.9M), with a negative net margin (9.7%) and negative ROE; analysts forecast about -0.2 EPS for the year.
• The stock trades near recent lows (opened $3.80; 1‑year range $2.91–$6.31) has a market cap of ~$321.6M, and institutional investors own roughly 86% of shares, with several funds adding new positions recently.

Ranpak (NYSE:PACK - Get Free Report) was downgraded by equities research analysts at Wall Street Zen from a "hold" rating to a "sell" rating in a note issued to investors on Sunday.

A number of other equities research analysts have also recently commented on the company. UBS Group reissued an "overweight" rating on shares of Ranpak in a report on Friday, March 6th. Cantor Fitzgerald reiterated an "overweight" rating on shares of Ranpak in a research report on Friday, March 6th. Weiss Ratings restated a "sell (d-)" rating on shares of Ranpak in a research report on Thursday, January 22nd. Finally, Craig Hallum dropped their target price on Ranpak from $10.00 to $8.00 and set a "buy" rating for the company in a research report on Friday, March 6th. Three equities research analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, Ranpak presently has an average rating of "Hold" and a consensus target price of $6.83.

Ranpak Stock Performance

Shares of PACK opened at $3.80 on Friday. Ranpak has a 1 year low of $2.91 and a 1 year high of $6.31. The company has a debt-to-equity ratio of 0.74, a current ratio of 1.83 and a quick ratio of 1.47. The firm has a market cap of $321.60 million, a PE ratio of -8.44 and a beta of 2.88. The stock's fifty day moving average price is $4.47 and its two-hundred day moving average price is $5.04.

Ranpak (NYSE:PACK - Get Free Report) last posted its quarterly earnings data on Thursday, March 5th. The company reported ($0.11) earnings per share for the quarter, missing analysts' consensus estimates of ($0.02) by ($0.09). Ranpak had a negative net margin of 9.70% and a negative return on equity of 7.11%. The company had revenue of $111.90 million for the quarter, compared to the consensus estimate of $112.82 million. On average, equities research analysts forecast that Ranpak will post -0.2 EPS for the current year.

Institutional Inflows and Outflows

Several hedge funds have recently modified their holdings of the stock. Royce & Associates LP acquired a new stake in Ranpak in the 3rd quarter valued at about $2,529,000. Bastion Asset Management Inc. purchased a new position in shares of Ranpak during the 3rd quarter worth approximately $3,201,000. First Eagle Investment Management LLC purchased a new position in shares of Ranpak during the 3rd quarter worth approximately $1,027,000. Divisadero Street Capital Management LP boosted its position in shares of Ranpak by 150.0% during the 3rd quarter. Divisadero Street Capital Management LP now owns 250,001 shares of the company's stock worth $1,405,000 after purchasing an additional 150,000 shares during the period. Finally, Ballast Inc. purchased a new position in shares of Ranpak during the 3rd quarter worth approximately $56,000. Institutional investors and hedge funds own 85.94% of the company's stock.

About Ranpak

Ranpak Holdings Corp. NYSE: PACK is a leading provider of sustainable, paper-based packaging solutions designed to protect products during transit. The company's core business centers on the design, manufacture and distribution of automated systems and consumable paper packaging materials that offer an eco-friendly alternative to plastic-based void-fill and protective packaging. Ranpak's solutions include crumpled paper fillers, paper wrap systems and tailored automation equipment that serve diverse end markets such as e-commerce, industrial parts, electronics and retail.

Founded in 1972 and headquartered in Concord Township, Ohio, Ranpak has built a global presence by combining innovation in paper converting technology with a commitment to sustainability.

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