Sonoco Products (NYSE:SON) Stock Price Down 6.4% on Analyst Downgrade

Sonoco Products Company (NYSE:SON)’s share price dropped 6.4% during mid-day trading on Thursday after Bank of America downgraded the stock from a buy rating to a neutral rating. Bank of America now has a $60.00 price target on the stock, down from their previous price target of $69.00. Sonoco Products traded as low as $51.30 and last traded at $51.22. Approximately 180,317 shares were traded during trading, a decline of 84% from the average session volume of 1,145,305 shares. The stock had previously closed at $54.74.

A number of other research firms also recently weighed in on SON. Truist Financial boosted their target price on shares of Sonoco Products from $64.00 to $68.00 and gave the stock a “buy” rating in a report on Friday, July 24th. Weiss Ratings raised shares of Sonoco Products from a “hold (c+)” rating to a “buy (b-)” rating in a report on Wednesday, August 26th. Finally, Citigroup lifted their price target on Sonoco Products from $63.00 to $66.00 and gave the stock a “buy” rating in a research report on Thursday, July 9th. Five investment analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the stock. According to MarketBeat.com, the company has an average rating of “Hold” and a consensus target price of $60.78.

Institutional Investors Weigh In On Sonoco Products

Several hedge funds and other institutional investors have recently made changes to their positions in the company. SBI Securities Co. Ltd. lifted its holdings in shares of Sonoco Products by 77.7% in the 4th quarter. SBI Securities Co. Ltd. now owns 590 shares of the industrial products company’s stock worth $26,000 after acquiring an additional 258 shares during the last quarter. LRI Investments LLC bought a new position in Sonoco Products during the 4th quarter valued at about $29,000. WPG Advisers LLC raised its position in Sonoco Products by 93.1% in the 1st quarter. WPG Advisers LLC now owns 612 shares of the industrial products company’s stock worth $33,000 after purchasing an additional 295 shares during the period. Larson Financial Group LLC raised its position in Sonoco Products by 1,826.9% in the 3rd quarter. Larson Financial Group LLC now owns 1,002 shares of the industrial products company’s stock worth $43,000 after purchasing an additional 950 shares during the period. Finally, Cullen Frost Bankers Inc. bought a new stake in Sonoco Products in the fourth quarter worth about $47,000. Hedge funds and other institutional investors own 77.69% of the company’s stock.

Sonoco Products Trading Down 5.9%

The company’s 50 day simple moving average is $56.67 and its 200-day simple moving average is $53.76. The firm has a market cap of $5.09 billion, a P/E ratio of 8.17, a P/E/G ratio of 1.25 and a beta of 0.36. The company has a quick ratio of 0.55, a current ratio of 0.99 and a debt-to-equity ratio of 0.97.

Sonoco Products (NYSE:SON) last released its earnings results on Wednesday, July 22nd. The industrial products company reported $1.51 EPS for the quarter, beating analysts’ consensus estimates of $1.47 by $0.04. Sonoco Products had a return on equity of 16.50% and a net margin of 8.41%.The firm had revenue of $1.89 billion for the quarter, compared to analysts’ expectations of $1.88 billion. During the same quarter in the prior year, the firm posted $1.37 earnings per share. The company’s quarterly revenue was down 1.3% on a year-over-year basis. Sonoco Products has set its FY 2026 guidance at 5.800-6.200 EPS. As a group, research analysts predict that Sonoco Products Company will post 5.8 earnings per share for the current fiscal year.

Sonoco Products Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, September 10th. Shareholders of record on Monday, August 10th will be given a $0.54 dividend. This represents a $2.16 annualized dividend and a yield of 4.2%. The ex-dividend date of this dividend is Monday, August 10th. Sonoco Products’s dividend payout ratio is 34.34%.

About Sonoco Products

Sonoco Products Company (NYSE: SON) is a global provider of diversified packaging solutions, serving a wide range of consumer, industrial and retail markets. The company offers a broad portfolio that includes rigid paper and plastic containers, flexible packaging, industrial core and tube products, thermoformed plastics, retail point-of-purchase displays, and packaging supply chain services. Through its solutions, Sonoco helps customers in food and beverage, personal care, chemicals, healthcare, home and garden, and electronics industries address their packaging needs, improve product shelf appeal, and optimize logistics efficiency.

With operations in more than 30 countries across North America, South America, Europe, Asia and Africa, Sonoco leverages a global network of manufacturing facilities, recycling centers and distribution channels to meet the demands of multinational and regional customers.