Sonoco Products Company (NYSE:SON) Receives Average Rating of "Moderate Buy" from Analysts

Key Points

• Sonoco Products Company has been assigned an average rating of "Moderate Buy" by eight brokerages, with a target price of $57.63 per share.
• The company reported quarterly earnings of $1.37 per share, which fell short of analysts' expectations, despite a 17.7% year-over-year revenue increase.
• Sonoco has declared a quarterly dividend of $0.53 per share, yielding 4.7%, with a payout ratio of approximately 38%.

Sonoco Products Company (NYSE:SON - Get Free Report) has been given an average recommendation of "Moderate Buy" by the eight brokerages that are currently covering the firm, Marketbeat Ratings reports. Two analysts have rated the stock with a hold recommendation and six have given a buy recommendation to the company. The average 1-year price objective among brokerages that have issued ratings on the stock in the last year is $57.6250.

Several equities research analysts recently issued reports on the company. Truist Financial boosted their price target on Sonoco Products from $53.00 to $58.00 and gave the company a "buy" rating in a research note on Friday, July 25th. UBS Group boosted their price target on Sonoco Products from $48.00 to $50.00 and gave the company a "neutral" rating in a research note on Thursday, July 24th. Finally, Raymond James Financial boosted their price target on Sonoco Products from $50.00 to $55.00 and gave the company an "outperform" rating in a research note on Tuesday, July 15th.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the business. ST Germain D J Co. Inc. acquired a new stake in shares of Sonoco Products in the 2nd quarter valued at approximately $26,000. TD Waterhouse Canada Inc. bought a new position in Sonoco Products in the 2nd quarter valued at approximately $30,000. Whittier Trust Co. of Nevada Inc. lifted its stake in Sonoco Products by 508.1% in the 1st quarter. Whittier Trust Co. of Nevada Inc. now owns 900 shares of the industrial products company's stock valued at $43,000 after purchasing an additional 752 shares during the last quarter. UMB Bank n.a. boosted its position in Sonoco Products by 152.7% in the first quarter. UMB Bank n.a. now owns 950 shares of the industrial products company's stock valued at $45,000 after buying an additional 574 shares in the last quarter. Finally, Allworth Financial LP grew its stake in shares of Sonoco Products by 152.0% during the first quarter. Allworth Financial LP now owns 1,071 shares of the industrial products company's stock worth $50,000 after buying an additional 646 shares during the last quarter. Institutional investors and hedge funds own 77.69% of the company's stock.

Sonoco Products Trading Down 1.2%

Shares of SON stock opened at $45.11 on Thursday. The company has a current ratio of 1.25, a quick ratio of 0.72 and a debt-to-equity ratio of 1.53. The stock has a market cap of $4.45 billion, a P/E ratio of 8.08, a price-to-earnings-growth ratio of 0.61 and a beta of 0.70. The stock has a 50 day simple moving average of $46.41 and a 200 day simple moving average of $45.62. Sonoco Products has a 1 year low of $39.46 and a 1 year high of $55.33.

Sonoco Products (NYSE:SON - Get Free Report) last issued its quarterly earnings results on Wednesday, July 23rd. The industrial products company reported $1.37 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.44 by ($0.07). The company had revenue of $1.91 billion during the quarter, compared to the consensus estimate of $1.92 billion. Sonoco Products had a net margin of 8.35% and a return on equity of 20.46%. The company's quarterly revenue was up 17.7% on a year-over-year basis. During the same quarter last year, the firm posted $1.28 earnings per share. Sonoco Products has set its FY 2025 guidance at 6.000-6.2 EPS. On average, research analysts predict that Sonoco Products will post 6.1 earnings per share for the current fiscal year.

Sonoco Products Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, September 10th. Investors of record on Friday, August 8th were given a dividend of $0.53 per share. This represents a $2.12 annualized dividend and a dividend yield of 4.7%. The ex-dividend date was Friday, August 8th. Sonoco Products's dividend payout ratio is currently 37.99%.

Sonoco Products Company Profile

Sonoco Products Company, together with its subsidiaries, designs, develops, manufactures, and sells various engineered and sustainable packaging products in North and South America, Europe, Australia, and Asia. The company operates Consumer Packaging and Industrial Paper Packaging segments. The Consumer Packaging segment offers round and shaped rigid paper, steel, and plastic containers; metal and peelable membrane ends, closures, and components; thermoformed plastic trays and enclosures; and high-barrier flexible packaging products.

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