Newell Brands Inc. (NWL) Stock Price Down 26.4% Following Weak Earnings
Shares of Newell Brands Inc. (NYSE:NWL) dropped 26.4% during mid-day trading on Friday following a dissappointing earnings announcement. The company traded as low as $29.70 and last traded at $30.01. Approximately 47,531,743 shares changed hands during trading, an increase of 597% from the average daily volume of 6,814,859 shares. The stock had previously closed at $40.78.
The company reported $0.86 EPS for the quarter, missing the consensus estimate of $0.92 by ($0.06). The company had revenue of $3.68 billion during the quarter, compared to the consensus estimate of $3.71 billion. Newell Brands had a return on equity of 11.52% and a net margin of 8.34%. The business’s revenue was down 7.0% on a year-over-year basis. During the same period in the prior year, the firm posted $0.78 EPS.
Newell Brands announced that its Board of Directors has approved a stock repurchase program on Tuesday, September 26th that authorizes the company to repurchase $256.00 million in outstanding shares. This repurchase authorization authorizes the company to reacquire up to 1.3% of its shares through open market purchases. Shares repurchase programs are typically an indication that the company’s board believes its stock is undervalued.
NWL has been the subject of several recent research reports. Jefferies Group LLC reiterated a “buy” rating and issued a $66.00 target price (up previously from $65.00) on shares of Newell Brands in a research note on Thursday, July 6th. Zacks Investment Research downgraded shares of Newell Brands from a “buy” rating to a “hold” rating in a research note on Tuesday, July 11th. BidaskClub downgraded shares of Newell Brands from a “buy” rating to a “hold” rating in a research note on Thursday, July 13th. BMO Capital Markets set a $51.00 target price on shares of Newell Brands and gave the stock a “hold” rating in a research note on Saturday, August 5th. Finally, J P Morgan Chase & Co set a $61.00 target price on shares of Newell Brands and gave the stock a “buy” rating in a research note on Monday, August 7th. Two equities research analysts have rated the stock with a sell rating, six have given a hold rating and seven have assigned a buy rating to the company. The company presently has an average rating of “Hold” and an average price target of $55.00.
In related news, Director Scott S. Cowen acquired 2,000 shares of the firm’s stock in a transaction on Monday, September 11th. The stock was acquired at an average cost of $43.60 per share, for a total transaction of $87,200.00. Following the acquisition, the director now owns 87,883 shares of the company’s stock, valued at $3,831,698.80. The purchase was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CEO Michael B. Polk acquired 5,000 shares of the firm’s stock in a transaction on Wednesday, September 13th. The stock was bought at an average price of $43.61 per share, with a total value of $218,050.00. Following the completion of the acquisition, the chief executive officer now directly owns 609,296 shares in the company, valued at approximately $26,571,398.56. The disclosure for this purchase can be found here. Insiders have purchased a total of 7,100 shares of company stock valued at $309,715 over the last quarter. 0.97% of the stock is currently owned by company insiders.
A number of hedge funds and other institutional investors have recently modified their holdings of the business. Pax World Management LLC raised its holdings in Newell Brands by 2.7% in the 3rd quarter. Pax World Management LLC now owns 383,403 shares of the company’s stock worth $16,360,000 after purchasing an additional 10,000 shares in the last quarter. Bessemer Group Inc. grew its position in shares of Newell Brands by 2.9% in the 3rd quarter. Bessemer Group Inc. now owns 3,028,535 shares of the company’s stock worth $129,228,000 after buying an additional 84,398 shares during the period. Doliver Capital Advisors LP purchased a new stake in shares of Newell Brands in the 3rd quarter worth about $297,000. Swiss National Bank grew its position in shares of Newell Brands by 1.0% in the 3rd quarter. Swiss National Bank now owns 1,779,453 shares of the company’s stock worth $75,929,000 after buying an additional 17,900 shares during the period. Finally, Rock Point Advisors LLC grew its position in shares of Newell Brands by 5.5% in the 3rd quarter. Rock Point Advisors LLC now owns 85,646 shares of the company’s stock worth $3,655,000 after buying an additional 4,450 shares during the period. Institutional investors and hedge funds own 92.24% of the company’s stock.
The company has a market cap of $14,707.90, a PE ratio of 10.46 and a beta of 1.20.
About Newell Brands
Newell Brands Inc is a marketer of consumer and commercial products. The Company’s segments include Writing, Home Solutions, Commercial Products, Baby & Parenting, Branded Consumables, Consumer Solutions, Outdoor Solutions and Process Solutions. Its products are marketed under a portfolio of brands, including Paper Mate, Sharpie, Dymo, Expo, Parker, Elmer’s, Coleman, Jostens, Marmot, Rawlings, Mr.
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