Spectrum Brands (NYSE:SPB) Hits New 52-Week High - Time to Buy?

Key Points

• Spectrum Brands hit a new 52-week high, trading as high as $88.47 and finishing up about 5% on the day.
• Recent analyst sentiment is mixed: the stock has a Moderate Buy consensus overall, but several firms have trimmed targets or downgraded the shares, with a consensus price target of $87.00.
• The company posted solid quarterly results, beating EPS and revenue estimates, and it also pays a 2.1% dividend yield with a relatively low payout ratio of 35.88%.

Spectrum Brands Holdings Inc. (NYSE:SPB - Get Free Report)'s stock price reached a new 52-week high during trading on Wednesday . The stock traded as high as $88.47 and last traded at $88.4850, with a volume of 151430 shares trading hands. The stock had previously closed at $84.12.

Analyst Ratings Changes

A number of research analysts recently issued reports on the company. Canaccord Genuity Group reduced their price objective on Spectrum Brands from $100.00 to $99.00 and set a "buy" rating for the company in a research report on Wednesday, June 17th. Wall Street Zen lowered shares of Spectrum Brands from a "buy" rating to a "hold" rating in a research report on Sunday, June 21st. Deutsche Bank Aktiengesellschaft reiterated a "hold" rating and issued a $81.00 price objective on shares of Spectrum Brands in a research report on Friday, May 8th. Wells Fargo & Company upped their target price on shares of Spectrum Brands from $80.00 to $85.00 and gave the stock an "equal weight" rating in a research report on Wednesday, July 8th. Finally, Weiss Ratings raised Spectrum Brands from a "hold (c)" rating to a "hold (c+)" rating in a report on Friday, April 24th. Three analysts have rated the stock with a Buy rating and three have given a Hold rating to the company's stock. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus target price of $87.00.

Spectrum Brands Stock Up 5.0%

The firm's fifty day moving average is $81.60 and its two-hundred day moving average is $75.85. The firm has a market cap of $2.03 billion, a price-to-earnings ratio of 16.86, a P/E/G ratio of 2.66 and a beta of 0.64. The company has a debt-to-equity ratio of 0.30, a current ratio of 2.29 and a quick ratio of 1.42.

Spectrum Brands (NYSE:SPB - Get Free Report) last posted its quarterly earnings data on Thursday, May 7th. The company reported $1.25 EPS for the quarter, topping analysts' consensus estimates of $1.04 by $0.21. The company had revenue of $708.90 million for the quarter, compared to the consensus estimate of $676.45 million. Spectrum Brands had a return on equity of 8.23% and a net margin of 4.47%.The company's quarterly revenue was up 4.9% compared to the same quarter last year. During the same quarter in the previous year, the business earned $0.68 EPS. On average, sell-side analysts expect that Spectrum Brands Holdings Inc. will post 5.32 EPS for the current fiscal year.

Spectrum Brands Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Tuesday, June 16th. Investors of record on Tuesday, May 26th were given a $0.47 dividend. The ex-dividend date was Tuesday, May 26th. This represents a $1.88 dividend on an annualized basis and a dividend yield of 2.1%. Spectrum Brands's dividend payout ratio (DPR) is 35.88%.

Insiders Place Their Bets

In related news, CEO David M. Maura acquired 2,500 shares of the business's stock in a transaction on Wednesday, May 20th. The shares were purchased at an average price of $72.85 per share, for a total transaction of $182,125.00. Following the acquisition, the chief executive officer owned 790,708 shares in the company, valued at approximately $57,603,077.80. This represents a 0.32% increase in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Corporate insiders own 4.50% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in SPB. Northwestern Mutual Wealth Management Co. lifted its position in shares of Spectrum Brands by 374,119.1% in the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 2,196,666 shares of the company's stock worth $129,779,000 after purchasing an additional 2,196,079 shares in the last quarter. Callodine Capital Management LP grew its position in Spectrum Brands by 20.4% during the fourth quarter. Callodine Capital Management LP now owns 2,065,216 shares of the company's stock valued at $122,013,000 after purchasing an additional 350,261 shares in the last quarter. Balyasny Asset Management L.P. acquired a new position in Spectrum Brands in the 2nd quarter valued at approximately $15,409,000. Qube Research & Technologies Ltd increased its stake in Spectrum Brands by 71.2% in the 2nd quarter. Qube Research & Technologies Ltd now owns 539,728 shares of the company's stock valued at $28,606,000 after buying an additional 224,481 shares during the period. Finally, Bridgeway Capital Management LLC purchased a new stake in Spectrum Brands in the 2nd quarter worth approximately $7,317,000.

Spectrum Brands Company Profile

Spectrum Brands Holdings, Inc is a global consumer products company that develops and markets a diverse portfolio of branded household and personal care products. Organized into four principal business segments—Hardware & Home Improvement, Home & Garden, Pet, and Appliances & Personal Care—the company offers a broad range of items including security and plumbing solutions, small electric appliances, grooming tools, and pet care accessories. Its hardware division features well-known brands such as Kwikset, Baldwin and Pfister, while the home appliance segment is anchored by names like Russell Hobbs and Remington.

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