Zacks Research Lowers Earnings Estimates for Avery Dennison

Key Points

• Zacks Research cut its Q1 2026 EPS estimate for Avery Dennison to $2.41 from $2.43 and now projects FY2026 EPS of $10.10, while issuing updated multi-quarter forecasts through Q4 2027.
• Avery Dennison reported Q1 EPS of $2.45, beating estimates by $0.05, set Q1 2026 guidance at $2.40–$2.46, and posted revenue up 3.9% year-over-year despite a slight revenue miss versus expectations.
• Analysts maintain a consensus rating of Moderate Buy with an average price target of $206.50, though recent mixed analyst moves and insider selling add nuance to investor sentiment.

Avery Dennison Corporation (NYSE:AVY - Free Report) - Equities research analysts at Zacks Research dropped their Q1 2026 EPS estimates for Avery Dennison in a report issued on Tuesday, April 14th. Zacks Research analyst Team now expects that the industrial products company will earn $2.41 per share for the quarter, down from their prior forecast of $2.43. The consensus estimate for Avery Dennison's current full-year earnings is $9.96 per share. Zacks Research also issued estimates for Avery Dennison's Q2 2026 earnings at $2.57 EPS, FY2026 earnings at $10.10 EPS, Q2 2027 earnings at $2.76 EPS, Q3 2027 earnings at $2.76 EPS and Q4 2027 earnings at $2.85 EPS.

A number of other equities research analysts have also recently commented on the stock. Weiss Ratings reissued a "hold (c)" rating on shares of Avery Dennison in a research report on Friday, March 27th. Deutsche Bank Aktiengesellschaft initiated coverage on shares of Avery Dennison in a research report on Wednesday, April 1st. They set a "buy" rating and a $200.00 target price for the company. Citigroup decreased their target price on shares of Avery Dennison from $201.00 to $190.00 and set a "neutral" rating for the company in a research report on Tuesday. UBS Group decreased their target price on shares of Avery Dennison from $226.00 to $222.00 and set a "buy" rating for the company in a research report on Friday. Finally, Truist Financial increased their target price on shares of Avery Dennison from $213.00 to $234.00 and gave the company a "buy" rating in a research report on Tuesday, January 6th. Ten research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company. Based on data from MarketBeat, Avery Dennison presently has a consensus rating of "Moderate Buy" and an average price target of $206.50.

Avery Dennison Trading Down 0.8%

NYSE:AVY opened at $170.92 on Wednesday. Avery Dennison has a 52 week low of $156.23 and a 52 week high of $199.54. The firm has a 50 day moving average of $180.53 and a 200 day moving average of $177.67. The company has a quick ratio of 0.76, a current ratio of 1.13 and a debt-to-equity ratio of 1.43. The stock has a market capitalization of $13.15 billion, a price-to-earnings ratio of 19.47, a PEG ratio of 2.84 and a beta of 1.00.

Avery Dennison (NYSE:AVY - Get Free Report) last posted its earnings results on Wednesday, February 4th. The industrial products company reported $2.45 EPS for the quarter, beating analysts' consensus estimates of $2.40 by $0.05. Avery Dennison had a net margin of 7.77% and a return on equity of 33.84%. The company had revenue of $2.27 billion during the quarter, compared to analysts' expectations of $2.29 billion. During the same quarter in the prior year, the company posted $2.38 earnings per share. Avery Dennison's revenue for the quarter was up 3.9% compared to the same quarter last year. Avery Dennison has set its Q1 2026 guidance at 2.400-2.46 EPS.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in AVY. Vanguard Group Inc. increased its stake in shares of Avery Dennison by 0.7% in the fourth quarter. Vanguard Group Inc. now owns 10,448,799 shares of the industrial products company's stock worth $1,900,428,000 after acquiring an additional 69,662 shares during the period. Wellington Management Group LLP increased its stake in shares of Avery Dennison by 12.5% in the third quarter. Wellington Management Group LLP now owns 5,808,960 shares of the industrial products company's stock worth $942,039,000 after acquiring an additional 644,664 shares during the period. Morgan Stanley increased its stake in shares of Avery Dennison by 20.1% in the fourth quarter. Morgan Stanley now owns 3,869,889 shares of the industrial products company's stock worth $703,856,000 after acquiring an additional 647,795 shares during the period. State Street Corp increased its stake in shares of Avery Dennison by 0.9% in the fourth quarter. State Street Corp now owns 3,701,598 shares of the industrial products company's stock worth $673,247,000 after acquiring an additional 34,124 shares during the period. Finally, Ameriprise Financial Inc. increased its stake in shares of Avery Dennison by 30.9% in the third quarter. Ameriprise Financial Inc. now owns 1,841,191 shares of the industrial products company's stock worth $298,613,000 after acquiring an additional 435,156 shares during the period. Hedge funds and other institutional investors own 94.17% of the company's stock.

Insiders Place Their Bets

In other Avery Dennison news, SVP Ignacio J. Walker sold 1,156 shares of the firm's stock in a transaction on Friday, February 6th. The shares were sold at an average price of $192.95, for a total value of $223,050.20. Following the completion of the transaction, the senior vice president owned 7,588 shares of the company's stock, valued at approximately $1,464,104.60. This trade represents a 13.22% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, Director Mitchell R. Butier sold 20,000 shares of the firm's stock in a transaction on Wednesday, March 11th. The stock was sold at an average price of $173.88, for a total transaction of $3,477,600.00. Following the completion of the transaction, the director directly owned 211,147 shares of the company's stock, valued at approximately $36,714,240.36. This represents a 8.65% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders sold 34,156 shares of company stock valued at $5,930,150. Corporate insiders own 0.81% of the company's stock.

Avery Dennison Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Wednesday, March 18th. Shareholders of record on Wednesday, March 4th were issued a $0.94 dividend. The ex-dividend date of this dividend was Wednesday, March 4th. This represents a $3.76 dividend on an annualized basis and a dividend yield of 2.2%. Avery Dennison's dividend payout ratio (DPR) is currently 42.82%.

About Avery Dennison

Avery Dennison NYSE: AVY is a global materials science and manufacturing company specializing in labeling and packaging solutions. The company develops pressure-sensitive materials, tags and labels, and adhesive technologies that help brands and businesses enhance product identification, branding and supply-chain performance. Avery Dennison's offerings range from industrial and retail labeling to high-performance tapes, films and graphics materials used across multiple end markets.

The company operates through several key segments, including Label and Graphic Materials, which supplies pressure-sensitive materials for consumer goods; Retail Branding and Information Solutions, offering apparel tags, RFID inlays and digital product identification; Pressure-Sensitive Materials, providing specialty tapes and adhesives; and RF Technologies, focused on advanced RFID and IoT labeling solutions.

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