Zacks Investment Research Lowers Sealed Air Corporation (SEE) to Hold
Sealed Air Corporation (NYSE:SEE) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report released on Wednesday.
According to Zacks, “For 2017, Sealed Air expects sales of $4.3 billion reflecting an expected 3% constant dollar sales growth in Food Care and 3–4% constant dollar sales growth in Product Care. In 2017, volume growth will be partially offset by higher raw material costs, a higher mix of eCommerce and fulfillment sales, along with the impact of functional support and related expenses, EPS is likely to be around $1.70 per share for 2017 due to the dilutive impact of the Diversey sale. Further, the company’s shares have underperformed the Zacks categorized sub industry year to date. However, Sealed Air’s top-line will be supported by enhanced demand for its core product portfolio, recently-introduced innovations, and accelerated growth in the global protein market along with the eCommerce sector. It will also benefit from the divestiture of its Diversey business. Its estimates have gone up in the past few days.”
Other equities research analysts have also recently issued research reports about the company. UBS AG set a $49.00 target price on Sealed Air Corporation and gave the stock a “buy” rating in a research note on Wednesday, May 10th. Credit Suisse Group set a $50.00 price objective on Sealed Air Corporation and gave the company a “buy” rating in a research note on Thursday, May 11th. Royal Bank Of Canada reissued a “buy” rating and issued a $52.00 price objective on shares of Sealed Air Corporation in a research note on Tuesday, April 11th. Goldman Sachs Group, Inc. (The) cut Sealed Air Corporation from a “conviction-buy” rating to a “buy” rating and reduced their price objective for the company from $53.00 to $50.00 in a research note on Tuesday, April 4th. Finally, BidaskClub raised Sealed Air Corporation from a “hold” rating to a “buy” rating in a research note on Friday, June 16th. Seven equities research analysts have rated the stock with a hold rating and six have issued a buy rating to the company’s stock. The stock has an average rating of “Hold” and an average price target of $48.73.
Sealed Air Corporation (NYSE:SEE) traded up 0.55% during trading on Wednesday, hitting $46.03. The stock had a trading volume of 264,146 shares. The company has a 50-day moving average of $45.03 and a 200 day moving average of $45.55. Sealed Air Corporation has a 52 week low of $41.74 and a 52 week high of $50.62. The company has a market cap of $9.01 billion, a price-to-earnings ratio of 26.45 and a beta of 1.17.
Sealed Air Corporation (NYSE:SEE) last released its earnings results on Tuesday, May 9th. The industrial products company reported $0.43 EPS for the quarter, missing the consensus estimate of $0.46 by $0.03. Sealed Air Corporation had a return on equity of 85.72% and a net margin of 5.48%. The business had revenue of $1.03 billion for the quarter, compared to analyst estimates of $1.58 billion. During the same period in the prior year, the business earned $0.50 EPS. The company’s revenue for the quarter was up 2.6% on a year-over-year basis. On average, equities research analysts anticipate that Sealed Air Corporation will post $1.83 EPS for the current year.
Sealed Air Corporation declared that its Board of Directors has initiated a stock buyback plan on Monday, March 27th that authorizes the company to buyback $1.50 billion in outstanding shares. This buyback authorization authorizes the industrial products company to reacquire up to 17.8% of its shares through open market purchases. Shares buyback plans are typically an indication that the company’s leadership believes its shares are undervalued.
In related news, insider Emile Z. Chammas bought 3,000 shares of the business’s stock in a transaction that occurred on Tuesday, May 16th. The shares were bought at an average price of $43.09 per share, with a total value of $129,270.00. Following the completion of the transaction, the insider now directly owns 148,077 shares in the company, valued at $6,380,637.93. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider Jerome A. Peribere bought 6,960 shares of the business’s stock in a transaction that occurred on Friday, May 12th. The shares were bought at an average cost of $42.97 per share, for a total transaction of $299,071.20. Following the transaction, the insider now owns 199,000 shares of the company’s stock, valued at $8,551,030. The disclosure for this purchase can be found here. 0.86% of the stock is owned by insiders.
Several hedge funds and other institutional investors have recently made changes to their positions in the stock. Huntington National Bank boosted its position in shares of Sealed Air Corporation by 2.0% in the first quarter. Huntington National Bank now owns 29,945 shares of the industrial products company’s stock valued at $1,305,000 after buying an additional 591 shares during the last quarter. DnB Asset Management AS boosted its position in shares of Sealed Air Corporation by 21.3% in the first quarter. DnB Asset Management AS now owns 17,079 shares of the industrial products company’s stock valued at $744,000 after buying an additional 3,000 shares during the last quarter. Baldwin Brothers Inc. MA boosted its position in shares of Sealed Air Corporation by 61,387.8% in the first quarter. Baldwin Brothers Inc. MA now owns 180,774 shares of the industrial products company’s stock valued at $7,878,000 after buying an additional 180,480 shares during the last quarter. Merriman Wealth Management LLC boosted its position in shares of Sealed Air Corporation by 54.5% in the first quarter. Merriman Wealth Management LLC now owns 42,780 shares of the industrial products company’s stock valued at $1,864,000 after buying an additional 15,088 shares during the last quarter. Finally, Gulf International Bank UK Ltd boosted its position in shares of Sealed Air Corporation by 1.4% in the first quarter. Gulf International Bank UK Ltd now owns 63,698 shares of the industrial products company’s stock valued at $2,775,000 after buying an additional 900 shares during the last quarter. 90.48% of the stock is currently owned by institutional investors.
Sealed Air Corporation Company Profile
Sealed Air Corporation is engaged in food safety and security, facility hygiene and product protection business. The Company’s segments are Food Care, Diversey Care, Product Care and Other (includes Corporate, Medical Applications and New Ventures businesses). The Food Care segment focuses on providing a range of integrated system solutions.
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