Sonoco Products (NYSE:SON) Shares Down 11.9% on Disappointing Earnings

Sonoco Products (NYSE:SON) shares were down 11.9% during trading 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 traded hands during mid-day 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 for the quarter, missing the consensus estimate of $1.41 by ($0.03). The company had revenue of $1.71 billion for the quarter, compared to analysts’ expectations of $2.02 billion. Sonoco Products had a return on equity of 20.81% and a net margin of 2.60%. The firm’s quarterly revenue was up 30.6% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $1.12 EPS.

Sonoco Products Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, June 10th. Stockholders of record on Friday, May 9th will be given a dividend of $0.53 per share. This represents a $2.12 annualized dividend and a dividend yield of 5.15%. The ex-dividend date is Friday, May 9th. This is an increase from Sonoco Products’s previous quarterly dividend of $0.52. Sonoco Products’s payout ratio is currently 128.48%.

Analyst Upgrades and Downgrades

Several analysts have recently weighed in on SON shares. Wells Fargo & Company reduced their price objective on shares of Sonoco Products from $50.00 to $48.00 and set an “underweight” rating for the company in a research report on Monday, February 24th. Raymond James reduced their price objective on shares of Sonoco Products from $54.00 to $50.00 and set an “outperform” rating for the company in a research report on Tuesday, April 22nd. Truist Financial reduced their price target on shares of Sonoco Products from $60.00 to $54.00 and set a “buy” rating for the company in a research report on Tuesday, April 22nd. StockNews.com downgraded shares of Sonoco Products from a “hold” rating to a “sell” rating in a research report on Friday, April 25th. Finally, Citigroup reduced their price target on shares of Sonoco Products from $59.00 to $55.00 and set a “buy” rating for the company in a research report on Monday, January 6th. Two 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 MarketBeat, the stock has a consensus rating of “Hold” and an average price target of $56.43.

Insider Activity at Sonoco Products

In other news, Director John R. Haley purchased 3,000 shares of the firm’s stock in a transaction dated Thursday, February 27th. The shares were acquired at an average price of $46.76 per share, with a total value of $140,280.00. Following the purchase, the director now directly owns 18,558 shares of the company’s stock, valued at $867,772.08. The trade was a 19.28 % increase in their ownership of the stock. The purchase was disclosed in a legal filing with the SEC, which is available through this link. Also, CEO R. Howard Coker purchased 20,000 shares of the firm’s stock in a transaction dated Thursday, March 13th. The shares were purchased at an average cost of $46.10 per share, for a total transaction of $922,000.00. Following the purchase, the chief executive officer now directly owns 482,365 shares in the company, valued at approximately $22,237,026.50. This represents a 4.33 % increase in their ownership of the stock. The disclosure for this purchase can be found here. 0.74% of the stock is owned by insiders.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the stock. UMB Bank n.a. raised its position in shares of Sonoco Products by 152.7% during the 1st quarter. UMB Bank n.a. now owns 950 shares of the industrial products company’s stock worth $45,000 after purchasing an additional 574 shares during the last quarter. Quarry LP raised its position in shares of Sonoco Products by 111.3% during the 4th quarter. Quarry LP now owns 970 shares of the industrial products company’s stock worth $47,000 after purchasing an additional 511 shares during the last quarter. Colonial Trust Co SC raised its position in shares of Sonoco Products by 90.6% during the 4th quarter. Colonial Trust Co SC now owns 953 shares of the industrial products company’s stock worth $47,000 after purchasing an additional 453 shares during the last quarter. Allworth Financial LP raised its position in shares of Sonoco Products by 152.0% during the 1st quarter. Allworth Financial LP now owns 1,071 shares of the industrial products company’s stock worth $50,000 after purchasing an additional 646 shares during the last quarter. Finally, True Wealth Design LLC raised its position in shares of Sonoco Products by 650.7% during the 4th quarter. True Wealth Design LLC now owns 1,096 shares of the industrial products company’s stock worth $54,000 after purchasing an additional 950 shares during the last quarter. 77.69% of the stock is currently owned by institutional investors and hedge funds.

Sonoco Products Price Performance

The company has a 50-day moving average of $45.56 and a 200-day moving average of $48.36. The company has a debt-to-equity ratio of 2.18, a quick ratio of 1.91 and a current ratio of 0.79. The stock has a market capitalization of $4.06 billion, a price-to-earnings ratio of 24.93, a P/E/G ratio of 0.76 and a beta of 0.64.

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.