Avon Products, Inc. (AVP) Cut to “Strong Sell” at Zacks Investment Research
Zacks Investment Research cut shares of Avon Products, Inc. (NYSE:AVP) from a hold rating to a strong sell rating in a research report sent to investors on Tuesday.
According to Zacks, “Avon has lagged the broader industry in the last six months, largely due to its dismal surprise history. The company has posted lower-than-expected bottom-line results for three straight quarters now, with a loss in the last quarter. Avon continues to face lower Active Representatives, though it is on track to improve the same. Estimates have been going down ahead of the second quarter release. The company remains prone to stiff competition, and other macroeconomic hurdles. Further, management expects the second quarter to remain troubled. However, we remain impressed with Avon’s progress with its Transformation Plan, which started its second year, this quarter. The company is on track to generate targeted savings of $230 million in 2017. Also, it is confident of achieving its long-term goals of low-double digit operating margin growth, Active Representatives growth of 1–2% and constant-dollar revenue growth in the mid-single digits.”
A number of other equities research analysts have also weighed in on AVP. DA Davidson began coverage on shares of Avon Products in a research note on Thursday, July 6th. They set a neutral rating and a $4.25 target price for the company. ValuEngine lowered shares of Avon Products from a hold rating to a sell rating in a research note on Friday, June 2nd. Finally, Royal Bank Of Canada reiterated a hold rating and set a $4.00 target price on shares of Avon Products in a research note on Friday, March 24th. Three equities research analysts have rated the stock with a sell rating, three have issued a hold rating and two have given a buy rating to the company. Avon Products currently has a consensus rating of Hold and a consensus target price of $5.54.
Avon Products (AVP) traded down 1.92% during trading on Tuesday, hitting $3.57. The stock had a trading volume of 1,800,350 shares. The company’s market capitalization is $1.57 billion. The stock’s 50-day moving average price is $3.56 and its 200-day moving average price is $4.54. Avon Products has a 1-year low of $3.24 and a 1-year high of $6.96.
Avon Products (NYSE:AVP) last announced its quarterly earnings data on Thursday, May 4th. The company reported ($0.07) earnings per share for the quarter, missing analysts’ consensus estimates of $0.01 by $0.08. Avon Products had a negative return on equity of 3.68% and a net margin of 0.26%. The firm had revenue of $1.33 billion during the quarter, compared to analysts’ expectations of $1.33 billion. During the same quarter in the previous year, the firm earned ($0.07) earnings per share. Avon Products’s revenue was up 2.0% on a year-over-year basis. Analysts expect that Avon Products will post $0.22 earnings per share for the current year.
Large investors have recently modified their holdings of the stock. Comerica Bank increased its stake in shares of Avon Products by 5.0% in the fourth quarter. Comerica Bank now owns 329,311 shares of the company’s stock worth $1,818,000 after buying an additional 15,804 shares during the last quarter. Dimensional Fund Advisors LP increased its stake in shares of Avon Products by 28.1% in the fourth quarter. Dimensional Fund Advisors LP now owns 6,582,658 shares of the company’s stock worth $33,178,000 after buying an additional 1,442,984 shares during the last quarter. Credit Agricole S A acquired a new stake in shares of Avon Products during the fourth quarter worth about $104,000. Envestnet Asset Management Inc. increased its stake in shares of Avon Products by 0.5% in the fourth quarter. Envestnet Asset Management Inc. now owns 51,377 shares of the company’s stock worth $259,000 after buying an additional 258 shares during the last quarter. Finally, A.R.T. Advisors LLC acquired a new stake in shares of Avon Products during the fourth quarter worth about $111,000. 86.90% of the stock is owned by hedge funds and other institutional investors.
About Avon Products
Avon Products, Inc is a manufacturer and marketer of beauty and related products. The Company’s segments include Europe, Middle East & Africa; South Latin America; North Latin America, and Asia Pacific. Its product categories are Beauty, and Fashion and Home. Beauty consists of skincare (which includes personal care), fragrance and color (cosmetics).
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