Sonoco Products (NYSE:SON) Sets New 1-Year Low After Analyst Downgrade

Key Points

• Sonoco Products' stock hit a new 52-week low at $39.38 following a downgrade from Truist Financial, which lowered its price target from $58 to $57 while maintaining a buy rating.
• Multiple analysts have varying opinions on Sonoco, with five analysts rating it a buy and four issuing hold ratings, resulting in a consensus rating of "Moderate Buy" and an average price target of $55.13.
• The company recently announced a $0.53 quarterly dividend, yielding 5.4%, with a dividend payout ratio of 37.99% and reported a net margin of 8.35% in its latest earnings.

Sonoco Products Company (NYSE:SON - Get Free Report)'s share price reached a new 52-week low on Monday after Truist Financial lowered their price target on the stock from $58.00 to $57.00. Truist Financial currently has a buy rating on the stock. Sonoco Products traded as low as $39.38 and last traded at $39.45, with a volume of 757301 shares changing hands. The stock had previously closed at $39.61.

A number of other analysts have also commented on SON. Weiss Ratings reaffirmed a "hold (c-)" rating on shares of Sonoco Products in a research note on Wednesday, October 8th. Raymond James Financial lifted their price target on shares of Sonoco Products from $50.00 to $55.00 and gave the stock an "outperform" rating in a report on Tuesday, July 15th. UBS Group reduced their price objective on shares of Sonoco Products from $50.00 to $46.00 and set a "neutral" rating on the stock in a research note on Monday, October 6th. Bank of America restated a "neutral" rating and set a $56.00 target price on shares of Sonoco Products in a research report on Thursday. Finally, Citigroup cut their price target on Sonoco Products from $56.00 to $55.00 and set a "buy" rating for the company in a report on Monday, September 29th. Five investment analysts have rated the stock with a Buy rating and four have issued a Hold rating to the stock. Based on data from MarketBeat, Sonoco Products currently has a consensus rating of "Moderate Buy" and an average price target of $55.13.

Institutional Trading of Sonoco Products

Several institutional investors have recently made changes to their positions in SON. UMB Bank n.a. boosted its holdings 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 acquiring an additional 574 shares during the last quarter. Farther Finance Advisors LLC lifted its stake in shares of Sonoco Products by 65.6% in the 1st quarter. Farther Finance Advisors LLC now owns 3,082 shares of the industrial products company's stock valued at $148,000 after purchasing an additional 1,221 shares in the last quarter. Sound Income Strategies LLC grew its holdings in shares of Sonoco Products by 19.7% during the 1st quarter. Sound Income Strategies LLC now owns 333,566 shares of the industrial products company's stock worth $15,758,000 after purchasing an additional 54,837 shares during the period. Pinion Investment Advisors LLC increased its position in Sonoco Products by 161.5% during the 1st quarter. Pinion Investment Advisors LLC now owns 28,456 shares of the industrial products company's stock worth $1,344,000 after purchasing an additional 17,574 shares in the last quarter. Finally, Janney Montgomery Scott LLC raised its holdings in Sonoco Products by 29.8% in the first quarter. Janney Montgomery Scott LLC now owns 23,004 shares of the industrial products company's stock valued at $1,087,000 after buying an additional 5,278 shares during the period. 77.69% of the stock is owned by hedge funds and other institutional investors.

Sonoco Products Trading Down 0.3%

The company has a debt-to-equity ratio of 1.53, a current ratio of 1.25 and a quick ratio of 0.72. The business's 50-day simple moving average is $45.39 and its two-hundred day simple moving average is $45.25. The stock has a market capitalization of $3.89 billion, a price-to-earnings ratio of 7.08, a PEG ratio of 0.65 and a beta of 0.68.

Sonoco Products (NYSE:SON - Get Free Report) last issued its earnings results on Wednesday, June 22nd. The industrial products company reported $1.00 EPS for the quarter. Sonoco Products had a net margin of 8.35% and a return on equity of 20.46%. The business had revenue of $1.35 billion for the quarter. Sonoco Products has set its Q2 2022 guidance at $1.60-$1.70 EPS. On average, research analysts anticipate that Sonoco Products Company will post 6.1 earnings per share for the current fiscal year.

Sonoco Products Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Wednesday, September 10th. Stockholders of record on Friday, August 8th were paid a $0.53 dividend. The ex-dividend date was Friday, August 8th. This represents a $2.12 annualized dividend and a dividend yield of 5.4%. Sonoco Products's dividend payout ratio is 37.99%.

About Sonoco Products

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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