Zacks Investment Research upgraded shares of Newell Brands (NYSE:NWL) from a sell rating to a hold rating in a report published on Monday morning. The brokerage currently has $36.00 price objective on the stock.
According to Zacks, “Newell Brands is on track to attain its transformation goals through market share gains, point of sale growth, innovation, e-commerce improvement, and cost-savings plans. Further, stringent progress on its Project Renewal Program and Growth Game Plan bode well. This is likely to improve cost savings and accelerate growth by simplifying and strengthening the company’s portfolio. Additionally, Newell’s shareholder-friendly moves and value-added investments should attract investors’ attention. However, the company has lagged the industry in the last three months due to the after-effects of Hurricane Harvey, which weighed on its third-quarter 2017 results. The quarter marked the company’s first earnings miss in more than three years, while sales lagged after two straight beats. Moreover, the company slashed its outlook for 2017. Estimates for the current fiscal have been going up ahead of the fourth quarter earnings.”
Several other analysts have also recently weighed in on NWL. Forward View reaffirmed a buy rating and issued a $58.00 target price on shares of Newell Brands in a report on Monday, September 11th. Jefferies Group cut shares of Newell Brands from a buy rating to a hold rating and reduced their target price for the company from $63.00 to $49.00 in a report on Monday, September 11th. JPMorgan Chase & Co. reduced their target price on shares of Newell Brands from $58.00 to $56.00 and set an overweight rating on the stock in a report on Thursday, September 21st. BMO Capital Markets reaffirmed a market perform rating and issued a $45.00 target price (down previously from $51.00) on shares of Newell Brands in a report on Thursday, September 21st. Finally, KeyCorp set a $60.00 target price on shares of Newell Brands and gave the company a buy rating in a report on Monday, October 16th. One investment analyst has rated the stock with a sell rating, nine have given a hold rating and eight have given a buy rating to the company’s stock. Newell Brands presently has a consensus rating of Hold and an average target price of $45.20.
Shares of Newell Brands (NYSE NWL) traded up $0.35 on Monday, hitting $32.26. 3,520,000 shares of the stock traded hands, compared to its average volume of 5,490,000. The firm has a market capitalization of $15,810.00, a PE ratio of 12.46, a PEG ratio of 1.22 and a beta of 1.10. Newell Brands has a 1-year low of $27.45 and a 1-year high of $55.08. The company has a debt-to-equity ratio of 0.80, a current ratio of 1.46 and a quick ratio of 0.86.
Newell Brands (NYSE:NWL) last issued its quarterly earnings results on Thursday, November 2nd. The company reported $0.86 earnings per share (EPS) for the quarter, missing the Thomson Reuters’ consensus estimate of $0.92 by ($0.06). The business had revenue of $3.68 billion for the quarter, compared to analyst estimates of $3.71 billion. Newell Brands had a return on equity of 11.52% and a net margin of 8.34%. The firm’s revenue for the quarter was down 7.0% compared to the same quarter last year. During the same period in the prior year, the company posted $0.78 EPS. equities research analysts forecast that Newell Brands will post 2.81 EPS for the current year.
The business also recently declared a quarterly dividend, which was paid on Friday, December 15th. Shareholders of record on Thursday, November 30th were paid a $0.23 dividend. The ex-dividend date was Wednesday, November 29th. This represents a $0.92 annualized dividend and a yield of 2.85%. Newell Brands’s dividend payout ratio is currently 35.52%.
Newell Brands declared that its Board of Directors has approved a stock buyback plan on Tuesday, September 26th that authorizes the company to repurchase $256.00 million in outstanding shares. This repurchase authorization authorizes the company to repurchase up to 1.3% of its stock through open market purchases. Stock repurchase plans are usually a sign that the company’s leadership believes its stock is undervalued.
In related news, CEO Michael B. Polk purchased 7,000 shares of the company’s stock in a transaction on Monday, November 20th. The shares were bought at an average cost of $28.22 per share, for a total transaction of $197,540.00. Following the completion of the purchase, the chief executive officer now directly owns 616,296 shares of the company’s stock, valued at approximately $17,391,873.12. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Corporate insiders own 0.97% of the company’s stock.
A number of institutional investors have recently made changes to their positions in NWL. Ameriprise Financial Inc. increased its stake in Newell Brands by 28.1% in the second quarter. Ameriprise Financial Inc. now owns 7,796,439 shares of the company’s stock valued at $417,953,000 after purchasing an additional 1,709,917 shares during the last quarter. FIL Ltd purchased a new position in Newell Brands in the second quarter valued at approximately $76,301,000. Vanguard Group Inc. increased its stake in Newell Brands by 2.8% in the second quarter. Vanguard Group Inc. now owns 47,877,545 shares of the company’s stock valued at $2,567,193,000 after purchasing an additional 1,305,820 shares during the last quarter. Lord Abbett & CO. LLC increased its stake in Newell Brands by 57.4% in the second quarter. Lord Abbett & CO. LLC now owns 3,200,022 shares of the company’s stock valued at $171,585,000 after purchasing an additional 1,167,393 shares during the last quarter. Finally, Teachers Advisors LLC increased its stake in Newell Brands by 86.0% in the second quarter. Teachers Advisors LLC now owns 2,421,593 shares of the company’s stock valued at $129,846,000 after purchasing an additional 1,119,376 shares during the last quarter. Institutional investors own 94.29% of the company’s stock.
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About Newell Brands
Newell Brands Inc is a marketer of consumer and commercial products. The Company’s segments include Writing, Home Solutions, Commercial Products, Baby & Parenting, Branded Consumables, Consumer Solutions, Outdoor Solutions and Process Solutions. Its products are marketed under a portfolio of brands, including Paper Mate, Sharpie, Dymo, Expo, Parker, Elmer’s, Coleman, Jostens, Marmot, Rawlings, Mr.
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