Silgan (NASDAQ:SLGN) was downgraded by Zacks Investment Research from a “strong-buy” rating to a “hold” rating in a note issued to investors on Tuesday, Zacks.com reports. They presently have a $39.00 price objective on the industrial products company’s stock. Zacks Investment Research‘s price objective indicates a potential upside of 8.82% from the stock’s previous close.
According to Zacks, “Silgan continues to benefit from demand for vital products like food, beverage, consumer health and personal care products amid the coronavirus pandemic. However, lower demand for products not intended for stay-at-home use and weakness in certain beauty products owing to shift in consumer buying patterns amid the pandemic will weigh on results. Nevertheless, Silgan’s focus on cutting costs across each of its businesses will boost margins. Its adjusted earnings per share guidance for 2020 is at $2.70-$2.85. The mid-point of the range indicates year-over-year increase of 28%. The recent acquisition of the dispensing business of the Albéa Group is a strategic fit for the closures segment and expected to modestly boost Silgan’s earnings in 2020. However, elevation in debt levels following the acquisition remains a cause of concern.”
A number of other research analysts have also recently weighed in on SLGN. ValuEngine cut shares of Silgan from a “hold” rating to a “sell” rating in a research report on Monday, June 1st. Deutsche Bank lifted their price objective on shares of Silgan from $31.00 to $37.00 and gave the company a “hold” rating in a research note on Thursday, July 23rd. Finally, BidaskClub lowered shares of Silgan from a “hold” rating to a “sell” rating in a research note on Thursday, September 17th. Two equities research analysts have rated the stock with a sell rating, four have assigned a hold rating and three have assigned a buy rating to the company’s stock. The company currently has a consensus rating of “Hold” and a consensus target price of $37.50.
Shares of SLGN traded up $0.34 during mid-day trading on Tuesday, hitting $35.84. The company had a trading volume of 3,614 shares, compared to its average volume of 624,260. The business’s 50-day simple moving average is $37.76 and its 200-day simple moving average is $33.60. The company has a quick ratio of 0.74, a current ratio of 1.34 and a debt-to-equity ratio of 2.85. Silgan has a 1-year low of $24.65 and a 1-year high of $39.69. The stock has a market cap of $3.94 billion, a PE ratio of 15.86, a P/E/G ratio of 2.62 and a beta of 0.71.
Silgan (NASDAQ:SLGN) last released its earnings results on Wednesday, July 22nd. The industrial products company reported $0.85 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $0.64 by $0.21. Silgan had a net margin of 5.50% and a return on equity of 27.83%. The business had revenue of $1.18 billion for the quarter, compared to analysts’ expectations of $1.12 billion. On average, sell-side analysts expect that Silgan will post 2.84 earnings per share for the current year.
In related news, CFO Robert B. Lewis sold 20,000 shares of Silgan stock in a transaction on Wednesday, July 29th. The shares were sold at an average price of $38.05, for a total value of $761,000.00. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. 29.37% of the stock is currently owned by insiders.
A number of institutional investors have recently added to or reduced their stakes in the business. Handelsbanken Fonder AB bought a new stake in shares of Silgan in the 2nd quarter valued at approximately $524,000. California State Teachers Retirement System boosted its stake in Silgan by 1.8% in the 2nd quarter. California State Teachers Retirement System now owns 131,803 shares of the industrial products company’s stock valued at $4,269,000 after purchasing an additional 2,331 shares during the period. Jane Street Group LLC bought a new stake in Silgan in the 2nd quarter valued at $515,000. Public Employees Retirement System of Ohio raised its holdings in Silgan by 0.6% in the 2nd quarter. Public Employees Retirement System of Ohio now owns 103,934 shares of the industrial products company’s stock valued at $3,366,000 after acquiring an additional 642 shares in the last quarter. Finally, Cubist Systematic Strategies LLC acquired a new position in Silgan in the 2nd quarter valued at $739,000. 67.33% of the stock is owned by hedge funds and other institutional investors.
Silgan Holdings Inc, together with its subsidiaries, manufactures and sells rigid packaging for consumer goods products worldwide. It operates through three segments: Metal Containers, Closures, and Plastic Containers. The Metal Containers segment manufactures and sells steel and aluminum containers for food products, such as pet food, vegetables, soups, proteins, tomato based products, adult nutritional drinks, fruits, and other miscellaneous food products, as well as general line metal containers primarily for chemicals.
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