Sonoco Products (NYSE:SON) Hits New 12-Month High After Analyst Upgrade

Key Points

• Sonoco Products hit a new 52-week high after Truist Financial raised its price target from $64 to $68 and kept a buy rating. The stock traded as high as $58.54 during the session.
• Several other analysts have also recently boosted their outlooks, including Bank of America and Citigroup, though the overall consensus remains Hold with a mean price target of $61.78.
• The company reported better-than-expected quarterly earnings of $1.51 per share and revenue of $1.89 billion, and it also announced a quarterly dividend of $0.54 per share, payable September 10.

Sonoco Products Company (NYSE:SON - Get Free Report)'s share price hit a new 52-week high during trading on Friday after Truist Financial raised their price target on the stock from $64.00 to $68.00. Truist Financial currently has a buy rating on the stock. Sonoco Products traded as high as $58.54 and last traded at $58.2750, with a volume of 819376 shares changing hands. The stock had previously closed at $56.32.

A number of other brokerages have also recently weighed in on SON. Bank of America raised their price objective on shares of Sonoco Products from $65.00 to $69.00 and gave the stock a "buy" rating in a research note on Tuesday, July 14th. Citigroup raised their price target on Sonoco Products from $63.00 to $66.00 and gave the stock a "buy" rating in a research report on Thursday, July 9th. Weiss Ratings lowered Sonoco Products from a "hold (c+)" rating to a "hold (c)" rating in a research note on Monday. Robert W. Baird cut their target price on shares of Sonoco Products from $60.00 to $55.00 and set a "neutral" rating for the company in a research note on Thursday, April 23rd. Finally, Deutsche Bank Aktiengesellschaft began coverage on shares of Sonoco Products in a research note on Wednesday, April 1st. They set a "buy" rating and a $63.00 price target on the stock. Five investment analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the company. According to MarketBeat, the stock presently has a consensus rating of "Hold" and a consensus price target of $61.78.

Insiders Place Their Bets

In related news, insider James A. Harrell III bought 6,753 shares of the company's stock in a transaction that occurred on Monday, April 27th. The shares were acquired at an average cost of $50.37 per share, for a total transaction of $340,148.61. Following the acquisition, the insider owned 10,070 shares in the company, valued at $507,225.90. This represents a 203.59% increase in their position. The purchase was disclosed in a filing with the SEC, which can be accessed through this link. 0.98% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Sonoco Products

Several large investors have recently added to or reduced their stakes in the company. Baker Ellis Asset Management LLC boosted its holdings in shares of Sonoco Products by 3.9% in the 1st quarter. Baker Ellis Asset Management LLC now owns 5,307 shares of the industrial products company's stock valued at $287,000 after buying an additional 201 shares during the period. Powell Investment Advisors LLC boosted its stake in Sonoco Products by 1.0% in the fourth quarter. Powell Investment Advisors LLC now owns 20,718 shares of the industrial products company's stock valued at $904,000 after acquiring an additional 203 shares during the period. IFP Advisors Inc grew its holdings in shares of Sonoco Products by 8.6% during the fourth quarter. IFP Advisors Inc now owns 2,996 shares of the industrial products company's stock valued at $131,000 after purchasing an additional 237 shares during the last quarter. EverSource Wealth Advisors LLC lifted its holdings in shares of Sonoco Products by 11.2% in the 1st quarter. EverSource Wealth Advisors LLC now owns 2,476 shares of the industrial products company's stock worth $134,000 after purchasing an additional 249 shares during the last quarter. Finally, SBI Securities Co. Ltd. boosted its position in Sonoco Products by 77.7% during the 4th quarter. SBI Securities Co. Ltd. now owns 590 shares of the industrial products company's stock valued at $26,000 after purchasing an additional 258 shares during the period. 77.69% of the stock is currently owned by institutional investors.

Sonoco Products Stock Performance

The company has a debt-to-equity ratio of 0.97, a quick ratio of 0.54 and a current ratio of 0.96. The stock has a market capitalization of $5.76 billion, a P/E ratio of 9.26, a P/E/G ratio of 1.20 and a beta of 0.37. The stock has a 50 day moving average of $51.93 and a 200 day moving average of $51.97.

Sonoco Products (NYSE:SON - Get Free Report) last released its quarterly earnings results on Wednesday, July 22nd. The industrial products company reported $1.51 EPS for the quarter, topping the consensus estimate of $1.47 by $0.04. Sonoco Products had a net margin of 8.41% and a return on equity of 16.60%. The business had revenue of $1.89 billion during the quarter, compared to analyst estimates of $1.88 billion. During the same quarter in the prior year, the firm earned $1.37 earnings per share. The company's quarterly revenue was down 1.3% on a year-over-year basis. Sonoco Products has set its FY 2026 guidance at 5.800-6.200 EPS. Equities analysts predict that Sonoco Products Company will post 5.79 EPS for the current year.

Sonoco Products Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, September 10th. Shareholders of record on Monday, August 10th will be paid a dividend of $0.54 per share. The ex-dividend date of this dividend is Monday, August 10th. This represents a $2.16 annualized dividend and a yield of 3.7%. Sonoco Products's dividend payout ratio (DPR) is presently 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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