Spectrum Brands (NYSE:SPB) Sets New 1-Year High - Still a Buy?

Key Points

• Spectrum Brands hit a new 52-week high (intraday high $80.53, last ~$80.73) as analysts lifted targets—Oppenheimer and RBC moved targets toward $85—and MarketBeat shows a Moderate Buy consensus with a $83 price target.
• Strong quarterly beat: the company reported $1.40 EPS vs. $0.77 expected and $677M revenue (above estimates) though revenue fell 3.3% YoY; market cap is about $1.88B with a P/E ~18.7.
• Shareholder-friendly metrics: Spectrum pays a $0.47 quarterly dividend (annualized $1.88, yield 2.3%, DPR ~43%) and several institutional investors recently increased their stakes.

Spectrum Brands Holdings Inc. (NYSE:SPB - Get Free Report) shares hit a new 52-week high during mid-day trading on Thursday . The company traded as high as $80.53 and last traded at $80.7330, with a volume of 120218 shares changing hands. The stock had previously closed at $79.16.

Analysts Set New Price Targets

A number of equities research analysts recently issued reports on the stock. Weiss Ratings reissued a "hold (c)" rating on shares of Spectrum Brands in a report on Friday, March 27th. Royal Bank Of Canada set a $85.00 price objective on shares of Spectrum Brands in a report on Friday, February 6th. Wells Fargo & Company upped their price objective on shares of Spectrum Brands from $62.00 to $80.00 and gave the company an "equal weight" rating in a report on Friday, February 6th. Finally, Oppenheimer upped their price objective on shares of Spectrum Brands from $75.00 to $85.00 and gave the company an "outperform" rating in a report on Friday, February 6th. Five equities research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company's stock. According to MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus price target of $83.00.

Spectrum Brands Trading Up 2.5%

The company's fifty day moving average is $76.11 and its two-hundred day moving average is $64.46. The stock has a market cap of $1.88 billion, a price-to-earnings ratio of 18.74, a PEG ratio of 2.70 and a beta of 0.63. The company has a quick ratio of 1.38, a current ratio of 2.21 and a debt-to-equity ratio of 0.29.

Spectrum Brands (NYSE:SPB - Get Free Report) last issued its earnings results on Thursday, February 5th. The company reported $1.40 earnings per share for the quarter, beating the consensus estimate of $0.77 by $0.63. The firm had revenue of $677.00 million for the quarter, compared to analysts' expectations of $667.59 million. Spectrum Brands had a net margin of 3.76% and a return on equity of 7.65%. The firm's revenue was down 3.3% compared to the same quarter last year. During the same quarter last year, the company earned $1.02 earnings per share. On average, research analysts predict that Spectrum Brands Holdings Inc. will post 5.06 EPS for the current fiscal year.

Spectrum Brands Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, March 10th. Shareholders of record on Tuesday, February 17th were issued a dividend of $0.47 per share. The ex-dividend date of this dividend was Tuesday, February 17th. This represents a $1.88 dividend on an annualized basis and a yield of 2.3%. Spectrum Brands's dividend payout ratio (DPR) is presently 43.42%.

Institutional Trading of Spectrum Brands

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. American Century Companies Inc. increased its holdings in shares of Spectrum Brands by 14.5% in the 3rd quarter. American Century Companies Inc. now owns 2,052,850 shares of the company's stock valued at $107,836,000 after acquiring an additional 260,085 shares during the period. Mitsubishi UFJ Trust & Banking Corp increased its holdings in shares of Spectrum Brands by 88.3% in the 3rd quarter. Mitsubishi UFJ Trust & Banking Corp now owns 22,618 shares of the company's stock valued at $1,188,000 after acquiring an additional 10,605 shares during the period. Assenagon Asset Management S.A. acquired a new position in shares of Spectrum Brands in the 3rd quarter valued at $994,000. Rovida Advisors Inc. increased its holdings in shares of Spectrum Brands by 1,140.4% in the 3rd quarter. Rovida Advisors Inc. now owns 60,000 shares of the company's stock valued at $3,150,000 after acquiring an additional 55,163 shares during the period. Finally, Callodine Capital Management LP increased its holdings in shares of Spectrum Brands by 26.7% in the 3rd quarter. Callodine Capital Management LP now owns 1,714,955 shares of the company's stock valued at $90,087,000 after acquiring an additional 360,898 shares during the period.

About Spectrum Brands

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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