Spectrum Brands (NYSE:SPB) Shares Gap Up Following Earnings Beat

Spectrum Brands Holdings Inc. (NYSE:SPB)’s stock price gapped up before the market opened on Thursday after the company announced better than expected quarterly earnings. The stock had previously closed at $53.24, but opened at $59.03. Spectrum Brands shares last traded at $62.6740, with a volume of 108,561 shares.

The company reported $2.61 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.91 by $1.70. Spectrum Brands had a net margin of 2.56% and a return on equity of 5.27%. The company had revenue of $733.50 million for the quarter, compared to analysts’ expectations of $738.57 million. During the same quarter in the previous year, the business posted $0.97 EPS. Spectrum Brands’s revenue was down 5.2% compared to the same quarter last year.

Spectrum Brands Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, December 9th. Investors of record on Monday, November 24th will be given a $0.47 dividend. The ex-dividend date is Monday, November 24th. This represents a $1.88 annualized dividend and a dividend yield of 3.0%. Spectrum Brands’s payout ratio is currently 70.15%.

Wall Street Analyst Weigh In

SPB has been the topic of several recent analyst reports. Weiss Ratings reissued a “hold (c-)” rating on shares of Spectrum Brands in a research note on Wednesday, October 8th. Royal Bank Of Canada set a $75.00 target price on Spectrum Brands and gave the stock an “outperform” rating in a report on Monday, August 11th. Wells Fargo & Company lowered their price objective on Spectrum Brands from $60.00 to $55.00 and set an “equal weight” rating for the company in a research report on Thursday, September 25th. Wall Street Zen lowered Spectrum Brands from a “hold” rating to a “sell” rating in a research report on Monday. Finally, Canaccord Genuity Group dropped their price objective on shares of Spectrum Brands from $77.00 to $75.00 and set a “buy” rating on the stock in a research note on Friday, August 8th. Four research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company’s stock. According to data from MarketBeat, the company has an average rating of “Moderate Buy” and a consensus target price of $73.80.

Institutional Trading of Spectrum Brands

A number of institutional investors and hedge funds have recently modified their holdings of SPB. GAMMA Investing LLC increased its holdings in Spectrum Brands by 120.3% during the 2nd quarter. GAMMA Investing LLC now owns 489 shares of the company’s stock valued at $26,000 after purchasing an additional 267 shares in the last quarter. Headlands Technologies LLC acquired a new position in shares of Spectrum Brands during the second quarter worth approximately $41,000. SJS Investment Consulting Inc. bought a new position in Spectrum Brands during the third quarter valued at about $47,000. State of Alaska Department of Revenue purchased a new stake in shares of Spectrum Brands during the 3rd quarter valued at approximately $49,000. Finally, Blue Trust Inc. increased its holdings in shares of Spectrum Brands by 44.8% in the 2nd quarter. Blue Trust Inc. now owns 1,060 shares of the company’s stock worth $56,000 after buying an additional 328 shares during the last quarter.

Spectrum Brands Stock Up 17.8%

The firm has a market cap of $1.52 billion, a PE ratio of 23.40 and a beta of 0.82. The company has a debt-to-equity ratio of 0.35, a quick ratio of 1.50 and a current ratio of 2.42. The company’s 50-day simple moving average is $53.63 and its two-hundred day simple moving average is $55.99.

About Spectrum Brands

Spectrum Brands Holdings, Inc operates as a branded consumer products and home essentials company in North America, Europe, the Middle East, Africa, and Asia-Pacific regions. It operates through three segments: Home and Personal Care; Global Pet Care; and Home and Garden. The Home and Personal Care segment provides home appliances under the Black & Decker, Russell Hobbs, George Foreman, PowerXL, Emeril Legasse, Copper Chef, Toastmaster, Juiceman, Farberware, and Breadman brands; and personal care products under the Remington brand.