Avery Dennison (NYSE:AVY) Share price down 6.2% on disappointing earnings

Avery Dennison Co. (NYSE:AVY – Get Rating) stock price fell 6.2% during Wednesday’s session after a disappointing earnings announcement. The company traded as low as $165.82 and last traded at $165.97. Around 55,163 shares were traded at midday, down 88% from the average daily volume of 444,163 shares. The stock previously closed at $177.01.

The industrial products company reported EPS of $2.46 for the quarter, missing analyst consensus estimates of $2.52 per ($0.06). Avery Dennison had a return on equity of 40.75% and a net margin of 8.48%. The company posted revenue of $2.32 billion in the quarter, versus analyst estimates of $2.30 billion. In the same quarter a year earlier, the company posted earnings of $2.14 per share. The company’s revenue for the quarter increased by 11.8% compared to the same quarter last year.

Avery Dennison Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Wednesday, September 21. Shareholders of record on Wednesday, September 7 received a dividend of $0.75 per share. The ex-dividend date was Tuesday, September 6. This represents a dividend of $3.00 on an annualized basis and a yield of 1.83%. Avery Dennison’s dividend payout ratio (DPR) is currently 32.79%.

Changes to analyst ratings

Several analysts have recently commented on the company. Bank of America downgraded Avery Dennison from a “buy” rating to a “neutral” rating and lowered its price target for the stock from $206.00 to $172.00 in a Thursday, October 13 research note . Citigroup cut its price target on Avery Dennison shares from $218.00 to $204.00 and set a “buy” rating on the stock in a Tuesday, October 11 report. UBS Group lowered its target price on Avery Dennison shares from $195.00 to $180.00 in a Wednesday, July 13 report. Finally, StockNews.com launched coverage on Avery Dennison shares in a Wednesday, October 12 report. They set a “buy” rating on the stock. Two investment analysts gave the stock a hold rating and six gave the company a buy rating. According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $196.00.

Insider buying and selling

In other news, Director Anthony Anderson sold 2,800 shares of the company in a trade that took place on Wednesday, September 14. The shares were sold at an average price of $178.82, for a total value of $500,696.00. Following completion of the transaction, the administrator now directly owns 1,374 shares of the company, valued at $245,698.68. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available via this hyperlink. 1.00% of the shares are currently held by insiders.

Institutional entries and exits

Several institutional investors have recently changed their stock portfolios. Wipfli Financial Advisors LLC bought a new position in Avery Dennison in the third quarter worth $227,000. Janney Montgomery Scott LLC bought a new position in Avery Dennison stock in Q3 for approximately $2,623,000. Fifth Third Bancorp increased its position in Avery Dennison shares by 1.4% during the third quarter. Fifth Third Bancorp now owns 27,981 shares of the industrial products company valued at $4,553,000 after buying 382 more shares in the last quarter. Thompson Siegel & Walmsley LLC bought a new position in Avery Dennison stock during Q3, valued at approximately $2,196,000. Finally, Texas Permanent School Fund increased its position in Avery Dennison by 6.8% in the third quarter. Texas Permanent School Fund now owns 11,497 shares of the industrial products company worth $1,871,000 after buying 734 additional shares in the last quarter. 90.21% of the shares are currently held by institutional investors.

Avery Dennison stock performance

The company has a market capitalization of $13.35 billion, a PE ratio of 19.35, a growth price-earnings ratio of 2.46 and a beta of 0.99. The company has a 50-day simple moving average of $177.99 and a 200-day simple moving average of $175.21. The company has a debt ratio of 1.29, a current ratio of 0.98 and a quick ratio of 0.65.

About Avery Dennison

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Avery Dennison Corporation manufactures and markets pressure sensitive materials and products in the United States, Europe, Asia, Latin America and internationally. The Company’s Label and Graphic Materials segment offers pressure-sensitive labels and packaging materials under the Fasson, JAC and Avery Dennison brands; graphics products under the Avery Dennison and Mactac brands; and reflective products under the Avery Dennison brand.

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