Sonoco Products (NYSE:SON) Trading Down 11.9% After Earnings Miss

Sonoco Products (NYSE:SON - Get Free Report)'s share price dropped 11.9% on Wednesday after the company announced weaker than expected quarterly earnings. The company traded as low as $42.32 and last traded at $41.20. Approximately 255,626 shares changed hands during trading, a decline of 66% from the average daily volume of 751,509 shares. The stock had previously closed at $46.76.

The industrial products company reported $1.38 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.41 by ($0.03). Sonoco Products had a return on equity of 20.81% and a net margin of 2.60%. The company had revenue of $1.71 billion for the quarter, compared to analyst estimates of $2.02 billion. During the same quarter in the previous year, the firm posted $1.12 earnings per share. Sonoco Products's quarterly revenue was up 30.6% compared to the same quarter last year.

Sonoco Products Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, June 10th. Shareholders of record on Friday, May 9th will be paid a $0.53 dividend. The ex-dividend date is Friday, May 9th. This is a positive change from Sonoco Products's previous quarterly dividend of $0.52. This represents a $2.12 annualized dividend and a yield of 4.72%. Sonoco Products's payout ratio is 137.66%.

Analysts Set New Price Targets

A number of research analysts recently commented on SON shares. Raymond James reduced their target price on Sonoco Products from $54.00 to $50.00 and set an "outperform" rating on the stock in a research note on Tuesday, April 22nd. Jefferies Financial Group began coverage on Sonoco Products in a report on Tuesday, April 22nd. They issued a "buy" rating and a $62.00 price objective on the stock. Bank of America increased their price target on shares of Sonoco Products from $66.00 to $71.00 and gave the company a "buy" rating in a research note on Monday, January 6th. Citigroup lowered their target price on shares of Sonoco Products from $59.00 to $55.00 and set a "buy" rating on the stock in a research report on Monday, January 6th. Finally, StockNews.com cut shares of Sonoco Products from a "hold" rating to a "sell" rating in a research note on Friday, April 25th. Two equities research analysts have rated the stock with a sell rating, one has assigned a hold rating and five have issued a buy rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and an average price target of $56.43.

Insiders Place Their Bets

In other Sonoco Products news, CEO R. Howard Coker purchased 20,000 shares of the stock in a transaction dated Thursday, May 1st. The shares were purchased at an average cost of $41.17 per share, with a total value of $823,400.00. Following the completion of the acquisition, the chief executive officer now directly owns 502,365 shares in the company, valued at $20,682,367.05. This trade represents a 4.15 % increase in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, Director John R. Haley bought 3,000 shares of the company's stock in a transaction that occurred on Thursday, February 27th. The shares were bought at an average price of $46.76 per share, with a total value of $140,280.00. Following the transaction, the director now owns 18,558 shares of the company's stock, valued at $867,772.08. The trade was a 19.28 % increase in their position. The disclosure for this purchase can be found here. Over the last 90 days, insiders have acquired 50,721 shares of company stock worth $2,206,646. Insiders own 0.74% of the company's stock.

Institutional Inflows and Outflows

Large investors have recently made changes to their positions in the stock. Arizona State Retirement System lifted its holdings in Sonoco Products by 0.8% during the fourth quarter. Arizona State Retirement System now owns 28,516 shares of the industrial products company's stock valued at $1,393,000 after purchasing an additional 224 shares in the last quarter. Beverly Hills Private Wealth LLC grew its stake in shares of Sonoco Products by 4.1% during the first quarter. Beverly Hills Private Wealth LLC now owns 5,669 shares of the industrial products company's stock worth $268,000 after purchasing an additional 224 shares in the last quarter. IFP Advisors Inc lifted its stake in Sonoco Products by 3.6% during the fourth quarter. IFP Advisors Inc now owns 7,073 shares of the industrial products company's stock worth $346,000 after purchasing an additional 243 shares during the last quarter. Wedmont Private Capital lifted its holdings in shares of Sonoco Products by 3.9% in the 4th quarter. Wedmont Private Capital now owns 6,652 shares of the industrial products company's stock valued at $306,000 after purchasing an additional 247 shares during the last quarter. Finally, Treasurer of the State of North Carolina grew its stake in shares of Sonoco Products by 0.6% in the 4th quarter. Treasurer of the State of North Carolina now owns 43,056 shares of the industrial products company's stock valued at $2,103,000 after purchasing an additional 270 shares during the last quarter. 77.69% of the stock is owned by institutional investors.

Sonoco Products Stock Performance

The firm has a market capitalization of $4.43 billion, a price-to-earnings ratio of 27.23, a PEG ratio of 0.76 and a beta of 0.68. The stock's 50 day moving average price is $45.44 and its two-hundred day moving average price is $48.13. The company has a current ratio of 0.79, a quick ratio of 1.91 and a debt-to-equity ratio of 2.18.

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.