Published On: Wed, Sep 21st, 2016

Zacks Investment Research Upgrades Avery Dennison Corp. (AVY) to Buy

Avery Dennison Corp. (NYSE:AVY) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research report issued to clients and investors on Wednesday. The brokerage currently has a $87.00 price objective on the stock. Zacks Investment Research’s price target indicates a potential upside of 11.32% from the stock’s previous close.
According to Zacks, “Following the strong operating performance in the second quarter 2016, Avery Dennison raised its adjusted earnings per share guidance to a new range of $3.80–$3.95 for full year 2016. Its endeavor to reduce fixed costs, localize material sourcing and responding more quickly to changes in customer needs by decentralizing decision making will aid growth. The company's recent acquisition of Mactac will add capacity to support growth for both graphics and tapes. Further, Avery Dennison will gain from constant focus on productivity and capital discipline. Continued focus on execution of strategies, cost control and share repurchases will also drive results. The company has a positve record of earnings surprises in the recent quarters.”
Other equities analysts have also recently issued reports about the company. JPMorgan Chase & Co. cut Avery Dennison Corp. from an “overweight” rating to a “neutral” rating and set a $78.00 target price for the company. in a research note on Thursday, May 26th. Bank of America Corp. cut Avery Dennison Corp. from a “buy” rating to an “underperform” rating and set a $75.00 target price for the company. in a research note on Friday, July 1st. One research analyst has rated the stock with a sell rating, two have given a hold rating and three have assigned a buy rating to the company. The stock has an average rating of “Hold” and an average target price of $78.00.

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Shares of Avery Dennison Corp. (NYSE:AVY) traded up 0.68% during midday trading on Wednesday, hitting $78.15. 423,164 shares of the company’s stock traded hands. The company has a 50 day moving average of $77.46 and a 200 day moving average of $74.53. Avery Dennison Corp. has a 52 week low of $55.29 and a 52 week high of $79.27. The stock has a market cap of $6.94 billion, a P/E ratio of 23.29 and a beta of 1.01.
Avery Dennison Corp. (NYSE:AVY) last released its earnings results on Tuesday, July 26th. The company reported $1.09 EPS for the quarter, beating the Thomson Reuters’ consensus estimate of $1.01 by $0.08. The company earned $1.54 billion during the quarter, compared to analysts’ expectations of $1.54 billion. Avery Dennison Corp. had a return on equity of 34.82% and a net margin of 5.18%. The business’s revenue was up 1.7% on a year-over-year basis. During the same period in the prior year, the business posted $0.91 EPS. On average, equities analysts forecast that Avery Dennison Corp. will post $3.94 EPS for the current fiscal year.
The business also recently announced a quarterly dividend, which will be paid on Wednesday, September 21st. Shareholders of record on Wednesday, September 7th will be given a $0.41 dividend. This represents a $1.64 annualized dividend and a yield of 2.10%. The ex-dividend date of this dividend is Friday, September 2nd. Avery Dennison Corp.’s dividend payout ratio is presently 48.81%.
In other Avery Dennison Corp. news, insider Dean A. Scarborough sold 100,000 shares of the stock in a transaction on Tuesday, August 2nd. The stock was sold at an average price of $77.97, for a total value of $7,797,000.00. Following the sale, the insider now directly owns 231,066 shares of the company’s stock, valued at $18,016,216.02. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, VP Susan C. Miller sold 2,000 shares of the stock in a transaction on Friday, July 1st. The stock was sold at an average price of $73.31, for a total value of $146,620.00. Following the completion of the sale, the vice president now directly owns 8,518 shares in the company, valued at $624,454.58. The disclosure for this sale can be found here. 2.70% of the stock is owned by company insiders.
A number of large investors have recently modified their holdings of AVY. Springbok Capital Management LLC bought a new stake in shares of Avery Dennison Corp. during the first quarter valued at $136,000. Financial Architects Inc bought a new stake in shares of Avery Dennison Corp. during the second quarter valued at $169,000. Whittier Trust Co. raised its stake in shares of Avery Dennison Corp. by 21.5% in the second quarter. Whittier Trust Co. now owns 2,357 shares of the company’s stock valued at $176,000 after buying an additional 417 shares in the last quarter. Creative Planning raised its stake in shares of Avery Dennison Corp. by 62.0% in the second quarter. Creative Planning now owns 2,578 shares of the company’s stock valued at $193,000 after buying an additional 987 shares in the last quarter. Finally, Veritable L.P. bought a new stake in shares of Avery Dennison Corp. during the second quarter valued at $206,000. 89.50% of the stock is currently owned by hedge funds and other institutional investors.
About Avery Dennison Corp.
Avery Dennison Corporation (Avery Dennison) is engaged in the production of pressure-sensitive materials and a range of tickets, tags, labels and other converted products. The Company’s pressure-sensitive materials are sold to label printers and converters that convert the materials into labels and other products through embossing, printing, stamping and die-cutting.

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