Avery Dennison (NYSE:AVY) Shares Down 5.3% on Disappointing Earnings

Shares of Avery Dennison Co. (NYSE:AVY) dropped 5.3% during trading on Thursday following a weaker than expected earnings announcement. The stock traded as low as $182.17 and last traded at $182.75. Approximately 193,540 shares were traded during trading, a decline of 69% from the average daily volume of 631,357 shares. The stock had previously closed at $192.91.

The industrial products company reported $2.38 EPS for the quarter, missing analysts’ consensus estimates of $2.39 by ($0.01). Avery Dennison had a return on equity of 33.01% and a net margin of 7.76%.

Wall Street Analysts Forecast Growth

Several brokerages have commented on AVY. Citigroup lowered their price objective on shares of Avery Dennison from $228.00 to $202.00 and set a “neutral” rating for the company in a report on Monday, January 6th. JPMorgan Chase & Co. cut Avery Dennison from an “overweight” rating to a “neutral” rating and lowered their target price for the company from $230.00 to $210.00 in a research note on Thursday, October 24th. Truist Financial reduced their price target on Avery Dennison from $258.00 to $245.00 and set a “buy” rating on the stock in a research note on Monday, January 6th. BMO Capital Markets lowered their price objective on Avery Dennison from $252.00 to $247.00 and set an “outperform” rating for the company in a research report on Thursday, October 24th. Finally, Bank of America reduced their target price on shares of Avery Dennison from $238.00 to $220.00 and set a “buy” rating on the stock in a research report on Monday, January 6th. Four research analysts have rated the stock with a hold rating and eight have assigned a buy rating to the company’s stock. Based on data from MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus price target of $235.05.

Insider Activity

In other Avery Dennison news, SVP Nicholas Colisto sold 3,679 shares of the company’s stock in a transaction dated Monday, November 25th. The shares were sold at an average price of $206.00, for a total transaction of $757,874.00. Following the transaction, the senior vice president now owns 7,126 shares in the company, valued at approximately $1,467,956. This represents a 34.05 % decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Corporate insiders own 1.10% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in AVY. Larson Financial Group LLC boosted its position in Avery Dennison by 100.0% in the third quarter. Larson Financial Group LLC now owns 142 shares of the industrial products company’s stock worth $31,000 after purchasing an additional 71 shares during the last quarter. Kennebec Savings Bank purchased a new position in shares of Avery Dennison in the third quarter worth approximately $36,000. Regents Gate Capital LLP bought a new stake in Avery Dennison during the fourth quarter valued at approximately $37,000. Peterson Financial Group Inc. purchased a new stake in shares of Avery Dennison in the 3rd quarter worth $39,000. Finally, Raleigh Capital Management Inc. raised its stake in shares of Avery Dennison by 1,400.0% in the third quarter. Raleigh Capital Management Inc. now owns 255 shares of the industrial products company’s stock worth $56,000 after buying an additional 238 shares during the period. 94.17% of the stock is owned by hedge funds and other institutional investors.

Avery Dennison Stock Performance

The company has a market cap of $14.68 billion, a P/E ratio of 21.93, a PEG ratio of 1.36 and a beta of 0.89. The business’s 50 day simple moving average is $193.87 and its 200 day simple moving average is $206.51. The company has a current ratio of 0.92, a quick ratio of 0.62 and a debt-to-equity ratio of 0.85.

Avery Dennison Company Profile

Avery Dennison Corporation operates as a materials science and digital identification solutions company in the United States, Europe, the Middle East, North Africa, Asia, Latin, America, and internationally. It provides pressure-sensitive materials comprising papers, plastic films, metal foils, and fabrics; performance tapes products, including tapes for wire harnessing, as well as cable wrapping for automotive, electrical, and general industrial applications; mechanical fasteners, which are precision-extruded and injection-molded plastic devices used in various automotive, general industrial, and retail applications; and other pressure-sensitive adhesive-based materials and converted products under the Fasson, JAC, Yongle, and Avery Dennison brands.