Spectrum Brands (NYSE:SPB) Shares Gap Down After Earnings Miss

Spectrum Brands Holdings, Inc. (NYSE:SPB) gapped down prior to trading on Thursday following a weaker than expected earnings announcement. The stock had previously closed at $61.88, but opened at $58.31. Spectrum Brands shares last traded at $62.21, with a volume of 133,753 shares.

The company reported $0.68 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.35 by ($0.67). Spectrum Brands had a return on equity of 6.44% and a net margin of 4.01%. The business had revenue of $675.70 million during the quarter, compared to analysts’ expectations of $701.00 million. During the same period in the prior year, the company posted $1.62 earnings per share. The firm’s revenue was down 6.0% on a year-over-year basis.

Spectrum Brands Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, June 17th. Investors of record on Tuesday, May 27th will be given a dividend of $0.47 per share. This represents a $1.88 dividend on an annualized basis and a yield of 2.93%. The ex-dividend date of this dividend is Tuesday, May 27th. Spectrum Brands’s payout ratio is presently 46.19%.

Analysts Set New Price Targets

SPB has been the topic of several research analyst reports. UBS Group lowered their price target on shares of Spectrum Brands from $106.00 to $76.00 and set a “buy” rating on the stock in a report on Thursday, April 17th. Canaccord Genuity Group raised shares of Spectrum Brands from a “hold” rating to a “buy” rating and raised their price objective for the company from $94.00 to $102.00 in a research report on Friday, February 7th. Royal Bank of Canada decreased their target price on shares of Spectrum Brands from $114.00 to $110.00 and set an “outperform” rating for the company in a research report on Friday, February 7th. Finally, Wells Fargo & Company reduced their price objective on shares of Spectrum Brands from $75.00 to $65.00 and set an “equal weight” rating for the company in a research note on Wednesday, April 16th. Two investment analysts have rated the stock with a hold rating and five have assigned a buy rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $95.43.

Institutional Trading of Spectrum Brands

A number of institutional investors and hedge funds have recently modified their holdings of SPB. Pzena Investment Management LLC raised its holdings in Spectrum Brands by 1.7% in the 4th quarter. Pzena Investment Management LLC now owns 1,333,345 shares of the company’s stock worth $112,654,000 after acquiring an additional 22,484 shares during the period. Alberta Investment Management Corp boosted its stake in Spectrum Brands by 33.1% during the 1st quarter. Alberta Investment Management Corp now owns 750,029 shares of the company’s stock valued at $53,665,000 after purchasing an additional 186,729 shares during the period. Callodine Capital Management LP increased its position in Spectrum Brands by 29.8% in the 4th quarter. Callodine Capital Management LP now owns 527,500 shares of the company’s stock worth $44,568,000 after buying an additional 121,000 shares during the period. FIL Ltd boosted its position in shares of Spectrum Brands by 8.7% in the fourth quarter. FIL Ltd now owns 461,568 shares of the company’s stock valued at $38,998,000 after acquiring an additional 36,798 shares during the period. Finally, Charles Schwab Investment Management Inc. grew its stake in shares of Spectrum Brands by 1.6% in the fourth quarter. Charles Schwab Investment Management Inc. now owns 450,807 shares of the company’s stock worth $38,089,000 after acquiring an additional 7,198 shares during the last quarter.

Spectrum Brands Trading Up 3.5 %

The company’s 50 day moving average is $66.26 and its 200 day moving average is $79.41. The stock has a market capitalization of $1.69 billion, a price-to-earnings ratio of 15.74, a PEG ratio of 1.70 and a beta of 1.00. The company has a debt-to-equity ratio of 0.27, a quick ratio of 1.53 and a current ratio of 2.40.

About Spectrum Brands

Spectrum Brands Holdings, Inc operates as a branded consumer products and home essentials company in North America, Europe, the Middle East, Africa, and Asia-Pacific regions. It operates through three segments: Home and Personal Care; Global Pet Care; and Home and Garden. The Home and Personal Care segment provides home appliances under the Black & Decker, Russell Hobbs, George Foreman, PowerXL, Emeril Legasse, Copper Chef, Toastmaster, Juiceman, Farberware, and Breadman brands; and personal care products under the Remington brand.