Zacks Investment Research lowered shares of Newell Brands (NYSE:NWL) from a buy rating to a hold rating in a report issued on Tuesday.
According to Zacks, “Newell Brands is on track to attain its transformation goals through market share gains, point of sale growth, innovation, e-commerce improvement, and cost-savings plans. Further, stringent progress on its Project Renewal Program and Growth Game Plan bode well. This is likely to improve cost savings and accelerate growth by simplifying and strengthening the company’s portfolio. Additionally, Newell’s shareholder-friendly moves and value-added investments should attract investors’ attention. However, the company has lagged the industry in the last three months due to the after-effects of Hurricane Harvey, which weighed on its third-quarter 2017 results. The quarter marked the company’s first earnings miss in more than three years, while sales lagged after two straight beats. Moreover, the company slashed its outlook for 2017. Estimates have been stable lately ahead of the fourth quarter earnings.”
A number of other research firms have also weighed in on NWL. JPMorgan Chase & Co. lowered shares of Newell Brands from an overweight rating to a neutral rating and increased their price objective for the stock from $56.00 to $63.00 in a research note on Thursday, November 2nd. Oppenheimer reiterated a hold rating and issued a $42.00 price objective on shares of Newell Brands in a research note on Tuesday, October 31st. Jefferies Group reiterated a hold rating and issued a $47.00 price objective on shares of Newell Brands in a research note on Thursday, October 19th. Barclays reissued a buy rating and set a $35.00 price target on shares of Newell Brands in a report on Wednesday, December 6th. Finally, Raymond James Financial reissued a market perform rating on shares of Newell Brands in a report on Friday, November 3rd. One equities research analyst has rated the stock with a sell rating, nine have assigned a hold rating and eight have assigned a buy rating to the stock. The company has a consensus rating of Hold and an average price target of $45.20.
Newell Brands (NYSE:NWL) last released its quarterly earnings data on Thursday, November 2nd. The company reported $0.86 earnings per share for the quarter, missing the Zacks’ consensus estimate of $0.92 by ($0.06). The business had revenue of $3.68 billion during the quarter, compared to analyst estimates of $3.71 billion. Newell Brands had a return on equity of 11.52% and a net margin of 8.34%. The firm’s revenue was down 7.0% compared to the same quarter last year. During the same quarter in the previous year, the company earned $0.78 EPS. equities research analysts anticipate that Newell Brands will post 2.81 EPS for the current fiscal year.
Newell Brands declared that its board has initiated a stock buyback plan on Tuesday, September 26th that authorizes the company to buyback $256.00 million in outstanding shares. This buyback authorization authorizes the company to purchase up to 1.3% of its shares through open market purchases. Shares buyback plans are usually an indication that the company’s leadership believes its stock is undervalued.
In related news, CEO Michael B. Polk acquired 7,000 shares of the firm’s stock in a transaction on Monday, November 20th. The shares were acquired at an average cost of $28.22 per share, with a total value of $197,540.00. Following the completion of the acquisition, the chief executive officer now directly owns 616,296 shares in the company, valued at approximately $17,391,873.12. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. Company insiders own 0.97% of the company’s stock.
Hedge funds and other institutional investors have recently modified their holdings of the company. Vanguard Group Inc. increased its position in Newell Brands by 2.8% during the second quarter. Vanguard Group Inc. now owns 47,877,545 shares of the company’s stock worth $2,567,193,000 after purchasing an additional 1,305,820 shares during the last quarter. Capital World Investors lifted its position in shares of Newell Brands by 2.0% during the 2nd quarter. Capital World Investors now owns 31,195,887 shares of the company’s stock worth $1,672,723,000 after buying an additional 610,973 shares during the last quarter. FMR LLC lifted its position in shares of Newell Brands by 0.5% during the 2nd quarter. FMR LLC now owns 11,462,512 shares of the company’s stock worth $614,621,000 after buying an additional 52,553 shares during the last quarter. American Century Companies Inc. lifted its position in shares of Newell Brands by 2.9% during the 3rd quarter. American Century Companies Inc. now owns 7,946,423 shares of the company’s stock worth $339,074,000 after buying an additional 225,484 shares during the last quarter. Finally, UBS Asset Management Americas Inc. lifted its position in shares of Newell Brands by 6.4% during the 2nd quarter. UBS Asset Management Americas Inc. now owns 3,934,152 shares of the company’s stock worth $210,949,000 after buying an additional 236,900 shares during the last quarter. Institutional investors and hedge funds own 94.28% of the company’s stock.
Newell Brands Company Profile
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.
For more information about research offerings from Zacks Investment Research, visit Zacks.com
Receive News & Ratings for Newell Brands Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Newell Brands and related companies with MarketBeat.com's FREE daily email newsletter.