Sonoco Products Downgraded to Hold by StockNews.com

On Thursday morning, StockNews.com announced that shares of Sonoco Products (NYSE:SON) have been downgraded from a buy rating to a hold rating. This shift in recommendation reflects a careful review of the company's performance and market conditions.

Additionally, various equities analysts have recently shared their insights regarding Sonoco Products. Notably, Truist Financial raised their target price for the company from $63.00 to $68.00, while maintaining a buy rating as reported on January 6th. On the same date, Citigroup adjusted its target price down from $59.00 to $55.00 but still rated the stock as a buy.

Bank of America also increased its target for Sonoco Products from $66.00 to $71.00, reinforcing a buy rating. Conversely, Wells Fargo & Company reduced their target price from $52.00 to $50.00 and assigned an underweight rating to the stock. Moreover, Robert W. Baird decreased their target price from $58.00 to $55.00, assigning a neutral rating in a review dated November 4th.

Currently, one analyst has given Sonoco a sell rating, two have assigned a hold rating, and four have provided buy ratings, showing a mixed outlook on the stock. According to MarketBeat, Sonoco Products currently holds a consensus rating of "Hold" and an average target price set at $58.83.

Sonoco Products Stock Performance

As of Thursday, Sonoco Products opened trading at $46.88. The company is reported to have a debt-to-equity ratio of 2.18, alongside a current ratio of 0.79 and a quick ratio of 1.91. Over the past year, the stock has experienced a low of $44.35 and a high of $61.73. Its 50-day simple moving average stands at $48.12, while the 200-day simple moving average is $51.03. Presently, Sonoco Products has a market capitalization of $4.61 billion, with a price-to-earnings (P/E) ratio of 28.41, a price/earnings-to-growth (PEG) ratio of 0.76, and a beta of 0.67.

Recently, Sonoco Products reported its quarterly earnings on February 18th, showing earnings of $1.17 per share (EPS), which fell short of consensus estimates of $1.18 by a margin of $0.01. The company recorded a return on equity of 20.81% and a net margin of 2.60%. Net revenue for the quarter was noted as $1.36 billion, which was below analysts' expectations of $1.67 billion. Analysts forecast that Sonoco Products will post earnings of 6.1 per share for the ongoing fiscal year.

Sonoco Products Dividend Announcement

The company has also declared a quarterly dividend of $0.52 per share, which is scheduled to be distributed on March 10th to investors holding shares by February 26th. This marks an annualized dividend yield of 4.44% and represents a total payout of $2.08. The ex-dividend date falls on February 26th, with a current payout ratio standing at an elevated 126.06%.

Insider Activity at Sonoco Products

In other developments regarding insider trading, Director Robert R. Hill, Jr. sold 4,000 shares of the company on January 7th, receiving approximately $191,800 at an average sale price of $47.95. Following this transaction, he owns around 16,065 shares, valued at about $770,316.75, which indicates a notable 19.94% decrease in his holdings. This sale has been documented in filings with the Securities and Exchange Commission.

Institutional Investors Weigh In On Sonoco Products

Recent movements among institutional investors also reveal changes in their positions regarding Sonoco Products. For instance, Kennebec Savings Bank acquired a new stake in the company during the third quarter, valued at $27,000. Similarly, Capital Performance Advisors LLP invested $33,000 in the same quarter.

Furthermore, Quarry LP increased its holdings by 111.3% during the fourth quarter, acquiring 511 additional shares to reach a total of 970 shares worth $47,000. Additionally, Colonial Trust Co SC raised its stake by 90.6%, obtaining 453 more shares and bringing its total to 953 shares, also valued at $47,000.

True Wealth Design LLC, on the other hand, amplified its holdings by a significant 650.7% during the fourth quarter, now owning 1,096 shares valued at $54,000. Presently, approximately 77.69% of Sonoco Products stock is owned by institutional investors.

About Sonoco Products

Sonoco Products Company is engaged in designing, manufacturing, and selling a variety of engineered and sustainable packaging products across regions including North America, South America, Europe, Australia, and Asia. The company operates through two primary segments: Consumer Packaging and Industrial Paper Packaging. The Consumer Packaging segment produces an array of products including rigid paper, steel and plastic containers, metal, and peelable membrane ends, as well as thermoformed plastic trays.

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