Sonoco Products Company (NYSE:SON) Given Average Rating of "Hold" by Brokerages

Key Points

• Sonoco Products has a Hold consensus rating from 12 brokerages, with seven holds and five buys; the average 1-year price target is about $60.11.
• The company recently reported disappointing quarterly results, with EPS of $1.20 versus the $1.57 estimate and revenue of $1.68 billion versus $1.88 billion expected.
• Sonoco also raised its quarterly dividend to $0.54 per share, equal to an annualized yield of about 3.9%.

Shares of Sonoco Products Company (NYSE:SON - Get Free Report) have been assigned an average rating of "Hold" from the twelve brokerages that are covering the stock, Marketbeat.com reports. Seven research analysts have rated the stock with a hold rating and five have assigned a buy rating to the company. The average 1-year price target among brokerages that have issued a report on the stock in the last year is $60.1111.

A number of research analysts have weighed in on the company. Deutsche Bank Aktiengesellschaft started coverage on Sonoco Products in a research note on Wednesday, April 1st. They issued a "buy" rating and a $63.00 price target for the company. Wall Street Zen downgraded Sonoco Products from a "buy" rating to a "hold" rating in a report on Saturday, May 2nd. Bank of America reissued a "buy" rating on shares of Sonoco Products in a research note on Wednesday, April 22nd. Robert W. Baird lowered their target price on shares of Sonoco Products from $60.00 to $55.00 and set a "neutral" rating on the stock in a report on Thursday, April 23rd. Finally, Raymond James Financial reiterated a "market perform" rating on shares of Sonoco Products in a research note on Friday, March 6th.

Insider Activity

In other Sonoco Products news, CFO Paul Joachimczyk acquired 8,058 shares of the company's stock in a transaction on Friday, April 24th. The shares were purchased at an average price of $49.64 per share, for a total transaction of $399,999.12. Following the completion of the purchase, the chief financial officer directly owned 28,558 shares of the company's stock, valued at approximately $1,417,619.12. This represents a 39.31% increase in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider James A. Harrell III acquired 6,753 shares of the business's stock in a transaction dated Monday, April 27th. The stock was acquired at an average cost of $50.37 per share, with a total value of $340,148.61. Following the completion of the transaction, the insider owned 10,070 shares of the company's stock, valued at approximately $507,225.90. The trade was a 203.59% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Company insiders own 0.98% of the company's stock.

Institutional Investors Weigh In On Sonoco Products

A number of large investors have recently added to or reduced their stakes in SON. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its position in shares of Sonoco Products by 44.3% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 49,093 shares of the industrial products company's stock valued at $2,319,000 after purchasing an additional 15,079 shares during the period. Goldman Sachs Group Inc. boosted its holdings in shares of Sonoco Products by 80.8% during the 1st quarter. Goldman Sachs Group Inc. now owns 206,493 shares of the industrial products company's stock worth $9,755,000 after buying an additional 92,286 shares during the period. Empowered Funds LLC boosted its holdings in shares of Sonoco Products by 14.1% during the 1st quarter. Empowered Funds LLC now owns 11,058 shares of the industrial products company's stock worth $522,000 after buying an additional 1,364 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its stake in Sonoco Products by 87.9% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 545,179 shares of the industrial products company's stock valued at $25,754,000 after buying an additional 255,055 shares during the last quarter. Finally, EverSource Wealth Advisors LLC raised its holdings in Sonoco Products by 315.4% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 1,587 shares of the industrial products company's stock valued at $69,000 after acquiring an additional 1,205 shares during the period. Institutional investors own 77.69% of the company's stock.

Sonoco Products Stock Up 1.4%

Sonoco Products stock opened at $55.12 on Friday. The company has a current ratio of 0.96, a quick ratio of 0.54 and a debt-to-equity ratio of 0.97. Sonoco Products has a 1-year low of $38.65 and a 1-year high of $58.44. The company has a fifty day simple moving average of $50.35 and a 200 day simple moving average of $50.23. The company has a market cap of $5.45 billion, a P/E ratio of 5.40, a price-to-earnings-growth ratio of 1.14 and a beta of 0.39.

Sonoco Products (NYSE:SON - Get Free Report) last posted its quarterly earnings data on Tuesday, April 21st. The industrial products company reported $1.20 EPS for the quarter, missing analysts' consensus estimates of $1.57 by ($0.37). The business had revenue of $1.68 billion for the quarter, compared to analyst estimates of $1.88 billion. Sonoco Products had a return on equity of 16.50% and a net margin of 13.57%.The company's quarterly revenue was down 1.9% on a year-over-year basis. During the same quarter in the prior year, the company earned $1.38 earnings per share. Sonoco Products has set its FY 2026 guidance at 5.800-6.200 EPS. Research analysts anticipate that Sonoco Products will post 5.81 earnings per share for the current fiscal year.

Sonoco Products Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Wednesday, June 10th. Stockholders of record on Friday, May 8th were issued a $0.54 dividend. This represents a $2.16 dividend on an annualized basis and a dividend yield of 3.9%. The ex-dividend date of this dividend was Friday, May 8th. This is a positive change from Sonoco Products's previous quarterly dividend of $0.53. Sonoco Products's payout ratio is currently 21.18%.

About Sonoco Products

Sonoco Products Company NYSE: SON is a global provider of diversified packaging solutions, serving a wide range of consumer, industrial and retail markets. The company offers a broad portfolio that includes rigid paper and plastic containers, flexible packaging, industrial core and tube products, thermoformed plastics, retail point-of-purchase displays, and packaging supply chain services. Through its solutions, Sonoco helps customers in food and beverage, personal care, chemicals, healthcare, home and garden, and electronics industries address their packaging needs, improve product shelf appeal, and optimize logistics efficiency.

With operations in more than 30 countries across North America, South America, Europe, Asia and Africa, Sonoco leverages a global network of manufacturing facilities, recycling centers and distribution channels to meet the demands of multinational and regional customers.

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