Zacks Investment Research cut shares of Avon Products, Inc. (NYSE:AVP) from a buy rating to a hold rating in a research report sent to investors on Monday.

According to Zacks, “Avon has underperformed the industry in six months owing to its dismal earnings surprise history. Notably, third-quarter 2017 results marked the company’s fifth straight quarter of earnings miss. Further, operating margin remained under pressure due to higher bad debt expenses, alongside increased Representative, sales leader and field expenses, all mainly in Brazil. However, top line reversed the trend after four consecutive misses. Though Avon is witnessing improving trends in various markets, it expects modest growth in fourth-quarter while results are likely to lag expectations in 2017. Nevertheless, Avon’s progress on Transformation Plan, which is on track to deliver cost savings goals of $230 million for 2017, is impressive. Further, the company expects to drive growth through innovations, solid team execution, improving Representative experience. However, the company will take time to realize the benefits from these strategies.”

AVP has been the subject of several other reports. UBS AG lowered their price target on Avon Products from $3.50 to $2.75 and set a sell rating for the company in a report on Friday, August 4th. Stifel Nicolaus restated a hold rating and issued a $3.00 price target on shares of Avon Products in a report on Friday. Royal Bank Of Canada lowered their price target on Avon Products from $4.00 to $3.00 and set a sector perform rating for the company in a report on Friday, August 4th. Deutsche Bank AG restated a hold rating and issued a $3.00 price target (down from $5.00) on shares of Avon Products in a report on Friday, August 4th. Finally, ValuEngine downgraded Avon Products from a hold rating to a sell rating in a report on Friday, August 4th. Three research analysts have rated the stock with a sell rating and six have given a hold rating to the company’s stock. The company presently has a consensus rating of Hold and a consensus price target of $2.91.

Avon Products (AVP) traded down $0.10 during mid-day trading on Monday, hitting $1.95. The stock had a trading volume of 4,757,991 shares, compared to its average volume of 4,270,000. The company has a quick ratio of 0.97, a current ratio of 1.42 and a debt-to-equity ratio of -2.31. Avon Products has a 12 month low of $1.90 and a 12 month high of $6.24.

Avon Products (NYSE:AVP) last released its quarterly earnings data on Thursday, November 2nd. The company reported $0.03 EPS for the quarter, missing analysts’ consensus estimates of $0.07 by ($0.04). The company had revenue of $1.42 billion during the quarter, compared to the consensus estimate of $1.41 billion. Avon Products had a negative net margin of 1.40% and a negative return on equity of 3.68%. The company’s revenue for the quarter was up .7% compared to the same quarter last year. During the same quarter in the prior year, the company posted $0.02 EPS. equities research analysts predict that Avon Products will post 0.09 earnings per share for the current fiscal year.

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A number of hedge funds and other institutional investors have recently modified their holdings of the stock. BlackRock Inc. boosted its position in Avon Products by 14,920.7% during the first quarter. BlackRock Inc. now owns 46,294,214 shares of the company’s stock valued at $203,696,000 after purchasing an additional 45,986,012 shares during the last quarter. Vanguard Group Inc. boosted its position in Avon Products by 3.9% during the first quarter. Vanguard Group Inc. now owns 40,109,692 shares of the company’s stock valued at $176,482,000 after purchasing an additional 1,495,063 shares during the last quarter. FMR LLC lifted its position in shares of Avon Products by 219.8% in the second quarter. FMR LLC now owns 29,804,223 shares of the company’s stock valued at $113,256,000 after buying an additional 20,485,474 shares during the last quarter. Yacktman Asset Management LP lifted its position in shares of Avon Products by 0.3% in the third quarter. Yacktman Asset Management LP now owns 19,132,384 shares of the company’s stock valued at $44,578,000 after buying an additional 51,355 shares during the last quarter. Finally, State Street Corp lifted its position in shares of Avon Products by 1.7% in the first quarter. State Street Corp now owns 14,342,565 shares of the company’s stock valued at $63,106,000 after buying an additional 234,308 shares during the last quarter. 84.70% of the stock is owned by hedge funds and other institutional investors.

Avon Products Company Profile

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).

Analyst Recommendations for Avon Products (NYSE:AVP)

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