ACCO Brands Delivers Strong Q1 Results with EPS of $0.09
On May 7, 2023, industrial products company ACCO Brands (NYSE:ACCO) released its quarterly earnings report highlighting a strong first quarter performance. The company reported earnings per share of $0.09 for the quarter, surpassing the consensus estimate of $0.05 by $0.04 according to Briefing.com.
During Q1, ACCO Brands generated revenue of $402.60 million against a consensus estimate of $391.88 million, marking an 8.8% decrease compared to the same period last year. Notably, the firm was able to generate a positive return on equity of 12.07% despite experiencing a negative net margin of 0.68%.
Looking ahead, investors can expect a quarterly dividend payment from ACCO Brands on Friday, June 9th as announced by the company recently. Investors with shares on record before Friday May 19th will receive a dividend payment of $0.075 per share representing an annualized basis dividend yield of 5.94%. However, it is important to note that ACCO Brands’s current dividend payout ratio stands at -187.49%.
Shares in ACCO Brands were up during trading on Friday reaching $5.05 while trading volumes reached 586,046 shares over the course of the day amid an average while stock volumes stood at around trades totaling roughly563,636 shares.
The Quick Ratio for AC CO now stands at .83 alongside Current Ratio which has remained steady at approximately 1/50/1 as well as a Debt-to-Equity ratio which currently sits at around 1/16.
Despite several hedge funds and institutional investors offloading their stake in recent months- with notable buyers such as Medina Value Partners LLC acquiring new shares – ACCO Brand maintains a solid outlook with strong financial fundamentals and sound management policies.
ACCO Brands Corporation: Institutional Investor Interest and Latest Developments
ACCO Brands: Institutional Investors and Recent Updates
ACCO Brands Corporation, a well-established industrial products company catering to both commercial and consumer markets, has recently become a spotlight for hedge funds and institutional investors. The company’s stock has seen a strong uptick in interest by institutional investors with top names such as ARQ Capital Management LLC, Norges Bank, JPMorgan Chase & Co., Arrowstreet Capital Limited Partnership, and Medina Value Partners LLC applying huge sums of money towards acquiring stakes in the company.
Medina Value Partners LLC invested approximately $8.97 million dollars during Q4 of 2022 in ACCO Brands while AQR Capital Management LLC increased its stake by 77.4%, choosing to purchase an additional 916,973 shares of its stock amounting to over $11 million dollars.
Norges Bank joined the bandwagon during Q4 as well, purchasing newly released stakes worth an estimated $4.8 million dollars. Meanwhile Arrowstreet Capital Limited Partnership raised its position by 69.6% at the beginning of Q1 this year following suit with their investment plan in ACCO Brands.
JPMorgan Chase & Co., one of the top institutional investors in America’s finance industry also followed similar steps investing and increasing their holdings by another 37.1% which is valued at around $8 million dollars.
Accordingly, about four-fifths (80.65%) of stakeholders’ stock ownership is now held by various institutions marking a significant level shift in the structure of shareholder ownership in ACCO Brands. Following these purchases was some interesting news regarding an insider’s purchase.
EVP Roxanne M Bernstein purchased a substantial number of shares amounting to around 5k shares at an average cost per share of around $5.40 apiece on Thursday last week (March 9th). Her action alone resulted in accruing almost $27k worth of stocks along with her current holdings of 25k shares valued around $135k in ACCO Brands.
The company’s recent development attracted mixed reviews from a number of analysts who provided differing opinions on its financial future. Barrington Research, for instance, recommends buying the stock and has raised their price objective from $7 to $8 indicating the confidence they have in ACCO Brands. However, other analysts lowered ACCO Brand’s rating from buy to neutral with Stocknews.com following BWS Financial who hold a similar opinion and went ahead and lowered their price objective of the company by $3 apiece.
In conclusion, as institutional investors increasingly become a significant part of ownership as far as company stocks are concerned, ACCO Brands Corporation could perhaps brace themselves for further investment going forward if their trend and standing positive news holds steady.
