On May 28, 2023, it was reported that Mercer Global Advisors Inc. ADV had obtained a new stake in ACCO Brands Co. (NYSE:ACCO) during the fourth quarter of the previous fiscal year. According to its most recent Form 13F filing with the Securities and Exchange Commission (SEC), the investment firm secured approximately $130,000 worth of the industrial products company’s stock via the acquisition of 23,172 shares.
Following this news, investors are eagerly anticipating a quarterly dividend that is set to be paid on June 9th. This particular dividend represents an annualized yield of 5.99% and is worth $0.075 per share for those who were recorded on May 19th as being recipients of this financial instrument. However, things become more perplexing when we note that ACCO Brands’s payout ratio is -176.46%.
To explain what this means for potential investors, let us explore some of the various research reports from trusted firms that have weighed in on ACCO Brands and their stock performance thus far. For instance, BWS Financial downgraded the outlook for ACCO Brands from “buy” to “neutral.” They also lowered their price target for the stock from $9.00 all the way down to $6.00 in their research report which was published on February 14th earlier this year- quite a steep decline!
On March 22nd however Barrington Research went against these judgments by raising their price target at ACCO Brands from $7.00 up to $8.00 and giving them an “outperform” rating based on analysis they conducted themselves.
Most recently though StockNews.com started coverage on ACCO Brands by asserting that they believe it is a sound investment opportunity; stating firmly that they have established a “buy” rating for this manufacture of inspired office products- encouraging news indeed!
In conclusion, while the payout ratio is indeed perplexing and may cause some to be somewhat hesitant towards investing in ACCO Brands, it is always wise to consider the opinions of multiple sources when making any significant financial decision. Therefore, those who are looking for encouraging signs about the future prospects of this office product manufacturer should take heed of StockNews’ positive outlook before investing any substantial portion of their portfolio into this particular company.
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Increased Institutional Investor Interest Prompts Debate over ACCO Brands’ Worth
ACCO Brands Corporation has found itself the subject of increased attention from several hedge funds and institutional investors in recent times. Among them, BlackRock Inc. has raised its stake in the industrial products company by 0.9% during the first quarter, with Allspring Global Investments Holdings LLC increasing its stake by 3.6% during the fourth quarter. Furthermore, Invesco Ltd., State Street Corp and Charles Schwab Investment Management Inc. have all increased their positions by 0.6%, 0.7%, and 17% respectively durng the first quarter of this year.
Interestingly, ACCO Brands also attracted the attention of Roxanne M. Bernstein – one of its own executive vice presidents – who recently purchased 5,000 shares at an average price of $5.40 per share for a total transaction of $27,000.00; therefore sparking further debate around the value of its stock.
ACCO Brands’ shareholders are set to benefit with a dividend payment on June 9th; investors held on record as-of May 19th will be issued a $0.075 dividend with an annualised yield of 5.99%. Nonetheless, ACCO remains an intriguing prospect for potential investors when juxtaposed against both historic market trends and future growth prospects within the industrial products sector.
Currently trading on NYSE:ACCO at $5.01 having experienced some volatility over the past twelve months between lows of $4.27 to highs of $7.56 – it remains uncertain where investors may take ACCO next.
Recent earnings from Friday May 5th, however, provided some positive news; beating consensus estimates with revenues up at $402m over Q1 compared to expectations at $391m.
With forecasts predicting EPS will stand at 1.11 for FY2023, it would seem that even though analyst verdicts continue to decry speculation or confusion surrounding ACCO Brands, fundamentally, institutional excitement and a strong financial performance may well see the company consolidate its position in the market.
