Silgan Holdings Inc. (NASDAQ:SLGN) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research report issued to clients and investors on Tuesday.
According to Zacks, “For 2016, Silgan trimmed its earnings per share guidance to $2.70–$2.90. The mid-point depicts a 6% year over year dip, reflecting lower demand from certain U.S. pack customers, a cool and wet start to the European growing season and a somewhat more measured pace of equipment relocations associated with the footprint optimization program in the plastic container business. For the third quarter, Silgan guides earnings in the range of $1.20–$1.30, reflecting a 1% dip at the mid-point year over year. Further, incremental costs from its footprint optimization programs, high debt and foreign exchange volatility remain concerns.”
SLGN has been the topic of several other research reports. Citigroup Inc. dropped their price objective on shares of Silgan Holdings from $55.00 to $54.00 and set a “neutral” rating on the stock in a research note on Tuesday, August 2nd. Goldman Sachs Group Inc. reiterated a “neutral” rating and issued a $53.00 price objective on shares of Silgan Holdings in a research note on Wednesday, June 1st. Wells Fargo & Co. lowered shares of Silgan Holdings from an “outperform” rating to a “market perform” rating in a research note on Thursday, July 28th. JPMorgan Chase & Co. began coverage on shares of Silgan Holdings in a research note on Tuesday, September 13th. They issued a “neutral” rating and a $51.00 price objective on the stock. Finally, BMO Capital Markets lowered shares of Silgan Holdings from an “outperform” rating to a “market perform” rating and dropped their price objective for the company from $58.00 to $47.00 in a research note on Wednesday, June 8th. Two investment analysts have rated the stock with a sell rating, eight have given a hold rating and two have assigned a buy rating to the company. The stock presently has a consensus rating of “Hold” and an average price target of $52.33.
Silgan Holdings (NASDAQ:SLGN) traded up 0.71% during midday trading on Tuesday, reaching $49.89. 36,565 shares of the company traded hands. The stock has a market capitalization of $3.02 billion, a price-to-earnings ratio of 19.39 and a beta of 0.54. Silgan Holdings has a 12 month low of $47.00 and a 12 month high of $56.06. The firm has a 50 day moving average of $48.80 and a 200-day moving average of $50.85.
Silgan Holdings (NASDAQ:SLGN) last released its quarterly earnings results on Wednesday, July 27th. The company reported $0.60 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $0.56 by $0.04. Silgan Holdings had a net margin of 4.23% and a return on equity of 25.69%. The business had revenue of $874.60 million for the quarter, compared to analyst estimates of $895.15 million. During the same quarter in the previous year, the business earned $0.71 earnings per share. The firm’s revenue was down 4.3% compared to the same quarter last year. Analysts forecast that Silgan Holdings will post $2.80 EPS for the current fiscal year.
The company also recently disclosed a quarterly dividend, which was paid on Thursday, September 15th. Investors of record on Thursday, September 1st were issued a dividend of $0.17 per share. This represents a $0.68 annualized dividend and a dividend yield of 1.37%. The ex-dividend date was Tuesday, August 30th. Silgan Holdings’s dividend payout ratio is currently 26.25%.
In related news, VP Anthony P. Andreacchi sold 1,221 shares of the company’s stock in a transaction on Tuesday, August 30th. The shares were sold at an average price of $48.48, for a total transaction of $59,194.08. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, VP B Frederik Prinzen sold 1,000 shares of the company’s stock in a transaction on Thursday, August 18th. The stock was sold at an average price of $48.05, for a total transaction of $48,050.00. The disclosure for this sale can be found here. Corporate insiders own 32.94% of the company’s stock.
Hedge funds have recently bought and sold shares of the company. Norges Bank purchased a new stake in Silgan Holdings during the fourth quarter valued at about $33,681,000. Prudential Financial Inc. increased its stake in Silgan Holdings by 366.9% in the first quarter. Prudential Financial Inc. now owns 115,000 shares of the company’s stock valued at $6,115,000 after buying an additional 90,370 shares in the last quarter. BlackRock Inc. increased its stake in Silgan Holdings by 21.3% in the first quarter. BlackRock Inc. now owns 18,293 shares of the company’s stock valued at $973,000 after buying an additional 3,208 shares in the last quarter. BlackRock Group LTD increased its stake in Silgan Holdings by 28.3% in the first quarter. BlackRock Group LTD now owns 25,843 shares of the company’s stock valued at $1,374,000 after buying an additional 5,705 shares in the last quarter. Finally, BlackRock Institutional Trust Company N.A. increased its stake in Silgan Holdings by 10.1% in the first quarter. BlackRock Institutional Trust Company N.A. now owns 1,306,256 shares of the company’s stock valued at $69,454,000 after buying an additional 120,284 shares in the last quarter. 68.85% of the stock is owned by institutional investors and hedge funds.
Silgan Holdings Company Profile
Silgan Holdings Inc (Silgan) is a manufacturer of rigid packaging for shelf-stable food and other consumer goods products. The Company operates through three segments: metal container, closures and plastic container. The Company’s products include steel and aluminum containers for human and pet food and general line products; metal, composite and plastic closures for food and beverage products, and custom designed plastic containers and closures for personal care, food, healthcare, pharmaceutical, household and industrial chemical, pet care, agricultural, automotive and marine chemical products.
For more information about research offerings from Zacks Investment Research, visit Zacks.com
Receive News & Ratings for Silgan Holdings Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Silgan Holdings Inc. and related companies with MarketBeat.com's FREE daily email newsletter.