Silgan Holdings Inc. (SLGN) Lifted to Hold at Zacks Investment Research
According to Zacks, “Silgan will benefit from acquisitions, increased investments and continued focus on its footprint optimization programs across each of its businesses. These are well reflected in the company’s positive record of earnings surprises in recent quarters. However, Silgan trimmed its earnings per share guidance to $2.70–$2.90 for 2016. 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. For the third quarter, Silgan guides earnings in the range of $1.20–$1.30, a 1% dip at the mid-point year over year. Incremental costs from its footprint optimization programs and high debt also remain concerns.”
Several other equities analysts have also recently weighed in on the company. JPMorgan Chase & Co. began coverage on Silgan Holdings in a research note on Tuesday, September 13th. They set a neutral rating and a $51.00 target price on the stock. Citigroup Inc. lowered their price target on Silgan Holdings from $55.00 to $54.00 and set a neutral rating for the company in a research note on Tuesday, August 2nd. Wells Fargo & Co. cut Silgan Holdings from an outperform rating to a market perform rating in a research note on Thursday, July 28th. BMO Capital Markets cut Silgan Holdings from an outperform rating to a market perform rating and lowered their price target for the company from $58.00 to $47.00 in a research note on Wednesday, June 8th. Finally, Goldman Sachs Group Inc. reissued a neutral rating and issued a $53.00 price target on shares of Silgan Holdings in a research note on Wednesday, June 1st. One research analyst has rated the stock with a sell rating, nine have assigned a hold rating and two have issued a buy rating to the company. The stock has an average rating of Hold and a consensus price target of $52.33.
Shares of Silgan Holdings (NASDAQ:SLGN) opened at 49.40 on Monday. The stock’s 50 day moving average is $48.75 and its 200-day moving average is $50.88. The stock has a market cap of $2.99 billion, a price-to-earnings ratio of 19.20 and a beta of 0.54. Silgan Holdings has a 1-year low of $47.00 and a 1-year high of $56.06.
Silgan Holdings (NASDAQ:SLGN) last released its earnings results on Wednesday, July 27th. The company reported $0.60 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $0.56 by $0.04. Silgan Holdings had a return on equity of 25.69% and a net margin of 4.23%. The company had revenue of $874.60 million for the quarter, compared to analysts’ expectations of $895.15 million. During the same quarter in the previous year, the business posted $0.71 EPS. The business’s revenue for the quarter was down 4.3% on a year-over-year basis. On average, analysts anticipate that Silgan Holdings will post $2.80 EPS for the current year.
The business also recently announced a quarterly dividend, which was paid on Thursday, September 15th. Shareholders of record on Thursday, September 1st were given a dividend of $0.17 per share. The ex-dividend date was Tuesday, August 30th. This represents a $0.68 dividend on an annualized basis and a yield of 1.38%. Silgan Holdings’s payout ratio is currently 26.25%.
In other news, VP B Frederik Prinzen sold 1,000 shares of the company’s stock in a transaction that occurred on Thursday, August 18th. The stock was sold at an average price of $48.05, for a total transaction of $48,050.00. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, VP Anthony P. Andreacchi sold 1,221 shares of the company’s stock in a transaction that occurred on Tuesday, August 30th. The stock was sold at an average price of $48.48, for a total value of $59,194.08. The disclosure for this sale can be found here. Company insiders own 32.94% of the company’s stock.
Several hedge funds and other institutional investors have recently modified their holdings of the company. Fiera Capital Corp acquired a new position in shares of Silgan Holdings during the second quarter worth approximately $54,190,000. Norges Bank acquired a new position in shares of Silgan Holdings during the fourth quarter worth approximately $33,681,000. FMR LLC raised its position in shares of Silgan Holdings by 6.4% in the second quarter. FMR LLC now owns 6,112,850 shares of the company’s stock worth $314,567,000 after buying an additional 366,272 shares during the period. Emerald Acquisition Ltd. acquired a new position in shares of Silgan Holdings during the second quarter worth approximately $12,592,000. Finally, BTIM Corp. raised its position in shares of Silgan Holdings by 32.4% in the second quarter. BTIM Corp. now owns 599,586 shares of the company’s stock worth $30,855,000 after buying an additional 146,843 shares during the period. Institutional investors own 68.85% of the company’s stock.
About Silgan Holdings
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.
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