Avon Products (AVP) Downgraded by Zacks Investment Research to “Strong Sell”

Avon Products (NYSE:AVP) was downgraded by Zacks Investment Research from a “hold” rating to a “strong sell” rating in a report issued on Tuesday.

According to Zacks, “Avon underperformed the industry in the past month. Though the company delivered better-than-expected earnings in fourth quarter 2017, it lagged earnings estimates in the preceding five quarters. Moreover, sales reverted to negative surprise trend after a beat in the last quarter owing to declines in both Active and Ending Representatives across most segments. Going forward, management expects sales to remain under pressure due to a tough macro and competitive backdrop, mainly in its largest markets. However, the company remains encouraged by the smooth progress on Transformation Plan, which delivered above its cost-saving plan for 2017. The company realized cost savings of more than $250 million in 2017, beating the targeted $230 million. Further, the company expects execution of significant operational improvements in 2018, despite continued competitive pressures.”

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AVP has been the topic of a number of other reports. Bank of America lowered shares of Avon Products from a “neutral” rating to an “underperform” rating and reduced their target price for the stock from $3.00 to $2.50 in a research report on Thursday, January 4th. ValuEngine lowered shares of Avon Products from a “hold” rating to a “sell” rating in a research report on Wednesday, March 7th. Royal Bank of Canada reaffirmed a “sector perform” rating and set a $2.00 target price on shares of Avon Products in a research report on Friday, February 16th. Deutsche Bank raised their target price on shares of Avon Products from $2.00 to $3.00 and gave the stock a “hold” rating in a research report on Friday, February 16th. Finally, Jefferies Group set a $2.00 price objective on shares of Avon Products and gave the company a “sell” rating in a report on Thursday, February 15th. Five analysts have rated the stock with a sell rating, three have given a hold rating and one has given a buy rating to the company. The company currently has an average rating of “Hold” and a consensus target price of $2.47.

Shares of NYSE:AVP traded up $0.06 during trading on Tuesday, reaching $2.83. 4,412,836 shares of the company were exchanged, compared to its average volume of 4,521,816. The firm has a market cap of $1,219.84, a PE ratio of 47.17, a price-to-earnings-growth ratio of 1.22 and a beta of 1.42. Avon Products has a 12-month low of $1.85 and a 12-month high of $4.89. The company has a debt-to-equity ratio of -2.62, a quick ratio of 1.05 and a current ratio of 1.43.

Avon Products (NYSE:AVP) last issued its earnings results on Thursday, February 15th. The company reported $0.12 EPS for the quarter, topping the Zacks’ consensus estimate of $0.07 by $0.05. The business had revenue of $1.57 billion for the quarter, compared to analyst estimates of $1.60 billion. Avon Products had a net margin of 0.38% and a negative return on equity of 6.19%. The company’s quarterly revenue was up .1% compared to the same quarter last year. During the same period last year, the company posted $0.01 earnings per share. equities research analysts predict that Avon Products will post 0.18 EPS for the current fiscal year.

Hedge funds have recently modified their holdings of the stock. Mitsubishi UFJ Kokusai Asset Management Co. Ltd. increased its holdings in Avon Products by 169.0% during the fourth quarter. Mitsubishi UFJ Kokusai Asset Management Co. Ltd. now owns 51,362 shares of the company’s stock valued at $114,000 after buying an additional 32,268 shares during the period. Xact Kapitalforvaltning AB purchased a new position in Avon Products during the fourth quarter valued at approximately $136,000. Schroder Investment Management Group purchased a new position in Avon Products during the third quarter valued at approximately $156,000. Caption Management LLC purchased a new position in Avon Products during the fourth quarter valued at approximately $161,000. Finally, Stone Ridge Asset Management LLC purchased a new position in Avon Products during the fourth quarter valued at approximately $172,000. 83.61% of the stock is currently owned by institutional investors.

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Avon Products Company Profile

Avon Products, Inc manufactures and markets beauty and related products in Europe, the Middle East, Africa, south Latin America, north Latin America, and the Asia Pacific. The company offers beauty products, including skincare, fragrance, and color cosmetics; and fashion and home products, such as fashion jewelry, watches, apparel, footwear, accessories, gift and decorative products, housewares, entertainment and leisure products, children's products, and nutritional products.

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