On August 20, 2023, it was reported that Cascade Investment Advisors Inc. had acquired a new stake in Sonoco Products (NYSE:SON) during the first quarter of the year. This information was disclosed in their recent 13F filing with the Securities & Exchange Commission. The firm purchased 15,865 shares of Sonoco Products’ stock, which amounted to approximately $968,000 in value.
Sonoco Products is an industrial products company that operates in various sectors and provides essential packaging services to a wide range of industries. The acquisition of its shares by Cascade Investment Advisors Inc. indicates a vote of confidence in the company’s performance and potential for growth.
In addition to this development, Sonoco Products also recently announced its quarterly dividend payment schedule. Shareholders are set to receive a dividend of $0.51 per share on September 8th, with those recorded as investors on August 10th being eligible for this payment. It is important to note that the ex-dividend date for this dividend is August 9th.
The annualized dividend for Sonoco Products stands at $2.04 per share, resulting in a yield of 3.66%. This figure demonstrates the return on investment that shareholders can potentially earn through their ownership of Sonoco Products’ stock. Furthermore, the company’s payout ratio currently stands at 41.80%, indicating its commitment to distributing profits among its investors.
Sonoco Products has established itself as a key player within the industrial products sector and continues to generate returns for its shareholders through both capital appreciation and regular dividends. Investors who have paid attention to these recent developments may find them favorable indicators of Sonoco Products’ financial stability and potential for future growth.
Please ensure that you visit reliable financial sources for up-to-date information on Sonoco Products and consult with a professional advisor before making any investment decisions based on this article alone.
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Analysts and Institutional Investors Divided Over Potential Growth of Sonoco Products
Sonoco Products (NYSE:SON), an industrial products company with a market capitalization of $5.46 billion, has recently caught the attention of institutional investors who have made changes to their positions in the business. Ameritas Investment Partners Inc., for example, boosted its stake in Sonoco Products by 1.1% in the 1st quarter by purchasing additional shares worth $2,705,000. Oppenheimer Asset Management Inc. also raised its position in Sonoco Products by 4.5% during the same period by acquiring additional shares valued at $1,026,000.
Private Advisor Group LLC didn’t miss out on the opportunity either and purchased a new stake in Sonoco Products worth $303,000 during the 1st quarter. Meanwhile, Summit X LLC and Ascent Group LLC increased their holdings by 4.7% and 6.4% respectively during the same period.
Despite these movements by institutional investors, it seems that analysts are not entirely convinced about Sonoco Products’ potential growth. Wells Fargo & Company decreased their price objective from $61.00 to $55.00 and set an “equal weight” rating for the company on August 2nd. Similarly, Argus lowered their rating on Sonoco Products from a “buy” to a “hold” on August 3rd.
Bank of America also reduced their price objective for Sonoco Products from $80.00 to $68.00 on July 10th. StockNews.com started coverage on Sonoco Products recently and gave it a “hold” rating.
With all these differing opinions from analysts, Bloomberg.com reports that the average rating for Sonoco Products is “Hold,” with a consensus price target of $62.17.
As of August 20th, SON stock was trading at $55.76 after experiencing minimal movement during Friday’s trading session where approximately 432,371 shares were exchanged. The stock’s one-year low is $53.78, while its one-year high is $65.86.
Sonoco Products currently has a price-to-earnings (P/E) ratio of 11.43 and a price/earnings to growth (PEG) ratio of 2.14, indicating that the stock may be undervalued relative to its earnings potential. Its beta of 0.68 suggests that it is less volatile than the overall market.
Looking at Sonoco Products’ financial performance, the company reported earnings per share (EPS) of $1.38 for the most recent quarter ended July 31st, falling short of analysts’ consensus estimate by $0.12. However, it generated revenue of $1.71 billion for the same period, slightly below expectations of $1.83 billion.
Sonoco Products has maintained a net margin of 6.89% and a return on equity of 26.15%. In comparison, during the same quarter last year, the company posted an EPS of $1.76.
Despite missing estimates and receiving mixed ratings from analysts, it is expected that Sonoco Products will post EPS of 5.22 for the current fiscal year.
With all these developments in mind, investors should carefully consider their options before making any decisions regarding investments in Sonoco Products as increasing institutional interest contradicts cautious analyst sentiment and mixed trading activity observed in recent sessions.
