Zacks Investment Research upgraded shares of Avon Products (NYSE:AVP) from a strong sell rating to a hold rating in a report released on Monday.
According to Zacks, “Avon has outperformed the industry in past month driven by the company’s focus on transformation plan, which is on track to deliver cost savings goals of $230 million for 2017. Further, the company expects to drive growth through innovations, solid team execution, improving Representative experience. However, the company’s dismal earnings surprise history with fifth straight earnings miss recorded in third-quarter 2017 remains a concern. Further, operating margin remained under pressure due to higher bad debt expenses, alongside increased Representative, sales leader and field expenses, all mainly in Brazil. Nevertheless, top line trend reversed in the quarter after four consecutive misses. Though Avon is witnessing improving trends in various markets, it expects modest growth in fourth-quarter while results are likely to lag expectations in 2017. Estimates have been stable ahead of the fourth quarter earnings.”
A number of other brokerages also recently weighed in on AVP. Bank of America downgraded Avon Products from a neutral rating to an underperform rating and decreased their price target for the stock from $3.00 to $2.50 in a report on Thursday, January 4th. Stifel Nicolaus reiterated a hold rating and set a $3.00 price target on shares of Avon Products in a report on Friday, November 3rd. Jefferies Group decreased their price target on Avon Products from $2.20 to $1.75 and set an underperform rating for the company in a report on Friday, November 3rd. Royal Bank of Canada reiterated a hold rating and set a $3.00 price target on shares of Avon Products in a report on Friday, October 13th. Finally, DA Davidson reiterated a hold rating and set a $2.00 price target on shares of Avon Products in a report on Tuesday, November 7th. Three equities research analysts have rated the stock with a sell rating, six have issued a hold rating and one has assigned a buy rating to the company’s stock. The company currently has a consensus rating of Hold and an average target price of $2.86.
Avon Products (NYSE:AVP) traded up $0.04 during midday trading on Monday, reaching $2.21. The company had a trading volume of 1,869,146 shares, compared to its average volume of 3,150,000. The firm has a market capitalization of $972.39, a P/E ratio of -9.61, a price-to-earnings-growth ratio of 2.40 and a beta of 1.81. Avon Products has a 1-year low of $1.85 and a 1-year high of $6.03. The company has a quick ratio of 0.97, a current ratio of 1.42 and a debt-to-equity ratio of -2.31.
Avon Products (NYSE:AVP) last issued its quarterly earnings results on Thursday, November 2nd. The company reported $0.03 earnings per share for the quarter, missing the Zacks’ consensus estimate of $0.07 by ($0.04). The business had revenue of $1.42 billion during the quarter, compared to analysts’ expectations of $1.41 billion. During the same period in the prior year, the firm posted $0.02 EPS. The company’s revenue for the quarter was up .7% on a year-over-year basis. sell-side analysts anticipate that Avon Products will post -0.03 earnings per share for the current year.
Hedge funds have recently added to or reduced their stakes in the company. Alpine Global Management LLC bought a new position in shares of Avon Products during the 2nd quarter worth about $100,000. Shelton Capital Management bought a new position in shares of Avon Products during the 2nd quarter worth about $122,000. Verition Fund Management LLC boosted its position in shares of Avon Products by 27.3% during the 2nd quarter. Verition Fund Management LLC now owns 58,058 shares of the company’s stock worth $221,000 after purchasing an additional 12,437 shares in the last quarter. PEAK6 Investments L.P. bought a new position in shares of Avon Products during the 3rd quarter worth about $139,000. Finally, Commonwealth of Pennsylvania Public School Empls Retrmt SYS boosted its position in shares of Avon Products by 0.3% during the 2nd quarter. Commonwealth of Pennsylvania Public School Empls Retrmt SYS now owns 64,193 shares of the company’s stock worth $244,000 after purchasing an additional 213 shares in the last quarter. 82.38% of the stock is currently owned by institutional investors.
About Avon Products
Avon Products, Inc is a manufacturer and marketer of beauty and related products. The Company’s segments include Europe, Middle East & Africa; South Latin America; North Latin America, and Asia Pacific. Its product categories are Beauty, and Fashion and Home. Beauty consists of skincare (which includes personal care), fragrance and color (cosmetics).
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