On June 9, 2023, investment analysts at StockNews.com issued a report downgrading Crown Holdings Inc. (NYSE:CCK) from a “hold” rating to a “sell” rating. This comes after the release of the company’s earnings results on April 24th, which showed a $1.20 EPS for the quarter, surpassing analysts’ expectations by $0.15. Despite this positive performance, Crown saw a decrease in revenue of 5.9% compared to the same period last year.
Crown Holdings Inc. specializes in designing, manufacturing and selling packaging products and equipment for consumer goods such as aerosol cans, beverage packaging, food cans, closures and capping solutions as well as transit packaging. The company operates through four segments: Americas, Europe, Asia-Pacific and Transit Packaging.
While Crown has shown strong financial performance in recent quarters with high returns on equity and net margins over 30%, investors are questioning the company’s ability to sustain this level of success moving forward amidst decreasing revenue numbers.
The current sell-side analyst consensus projects Crown to post an EPS of 6.3 for the fiscal year ending December 31st. However, with share prices falling after the downgrade by StockNews.com, some financial experts warn that investors should approach buying Crown stock with caution.
As we continue to navigate an ever-evolving global market landscape impacted by factors such as shifting consumer preferences or trade tensions between nations – companies like Crown will need to adapt quickly in order to overcome these challenges and remain competitive within their industries.
It remains unclear how this recent downgrade will impact the future of Crown Holdings Inc., but one thing is certain – investors will be keenly watching to see how the company responds in these challenging times ahead.
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Rising Stock Prices and Positive Ratings Boost Crown Holdings Inc.’s Future Potential
Crown Holdings, Inc., a leading packaging products and equipment design, manufacturing, and sales company for consumer goods, has seen a rise in its stock prices following positive reports from various brokerages. Citigroup recently raised Crown’s price target from $103 to $104 on April 27th, and Mizuho increased the price target from $103 to $108 on April 26th. The Royal Bank of Canada also raised their price target for Crown from $96 to $97 in February. However, Wells Fargo & Company reduced the target price for Crown from $86 to $79 at the end of March. Finally, Barclays gave a “Moderate Buy” rating with an average target price of $97.60.
On June 9th, Crown’s stock opened at $83.80 with a market capitalization of over $10 billion. The company has a 52-week low of $66 and a high of almost $105. Further statistics indicate that the company has a debt-to-equity ratio of 2.84 with quick ratios at 0.73 as well as current ratios at 1.30.
Additionally, Crown operates through several segments including Americas, Europe, Asia Pacific and Transit Packaging while offering aerosol cans, beverage bottles/cans, promotional items packaging solutions like bags/boxes/containers to transit/aerospace packages such as pallets/handling tools.
Director James H. Miller also recently completed selling 9,300 shares valued just under $800 thousand on May 5th at an average share price of about $84 per share.
Several significant financial institutions like BlackRock Inc., Vanguard Group Inc., Nuveen Asset Management LLC and more have explored variable positions in shares of Crown during Q1 indicating high investor attraction within the firm’s industry sector.
With positive ratings and supportive analyst coverage alongside consistent revenue streams generated by their prominence in consumer-goods packaging solutions, Crown Holdings Inc. is a company to watch out for in the coming times.