On May 16, 2023, HBK Sorce Advisory LLC made headlines as it boosted its holdings in Sonoco Products (NYSE:SON) by an astounding 100.0%. According to its most recent 13F filing with the Securities and Exchange Commission, the institutional investor now owns 7,372 shares of the industrial products company’s stock after acquiring an additional 3,686 shares during the quarter. At the end of the most recent quarter, HBK Sorce Advisory LLC’s holdings in Sonoco Products were worth $448,000.
This move indicates strong confidence on behalf of HBK Sorce Advisory LLC in Sonoco Products. Adding further fuel to this bullish sentiment is the news that on June 9th a quarterly dividend will be paid to shareholders. This dividend represents a yield of 3.43%, which is sure to delight any investor. Shareholders of record on Wednesday May 10th will receive a dividend payout of $0.51 per share while those who own SON shares on Tuesday May 9th can expect an ex-dividend date.
Analysts are also showing increased optimism about SON following this recent good news. Citigroup has lowered their target price from $71.00 to $69.00 but maintains their rating at “buy” for the company despite this slight reduction.
Seaport Res Ptn has upgraded SON from a “neutral” rating to a “buy” rating in a research note dated March 20th . Similarly, Argus cited Sonoco’s improving valuation as reason for upgrading shares from “hold” to “buy”, setting a target price of $67.00 per share.
All signs point to Sonoco Products being one of the strongest players within its industry, and one that investors should keep their eyes closely affixed upon moving forward.
[bs_forecast_slider ticker=”SON”]
Sonoco Products: A Strong, Sustainable Investment Opportunity
Sonoco Products: A Company Overview
Sonoco Products is an industrial products company that is publicly traded on the New York Stock Exchange (NYSE:SON). The firm has a market capitalization of $5.83 billion and trades at a price-to-earnings ratio of 11.79. With a dividend yield of 3.43%, Sonoco Products offers investors an attractive income opportunity while maintaining solid financial performance.
Institutional ownership currently stands at 76.43% of the stock, with several hedge funds and other investors adding or reducing their stake in the company over the last few quarters. BlackRock Inc., Vanguard Group Inc., State Street Corp, Royal Bank of Canada, and Victory Capital Management Inc. are among some of the prominent institutional owners.
An Insider’s Perspective
Insider Ernest D. Haynes III recently sold shares in two separate transactions, one in March for $110,040 and another in March for $30,458.16. Collectively, Haynes sold 2,365 shares for a total price tag of $140,498.16.
A Positive Dividend Outlook
In May 2023, Sonoco Products declared a quarterly dividend payment to shareholders with a record date on May 10th and payable on June 9th where each shareholder will receive $0.51 per share owned – which represents an increase from its previous payout amount ($0.49). As it stands now,the current dividend payout ratio is approximately 40%, showing strong performance.
Financial Highlights
Analysts forecast earnings per share (EPS) for Sonoco Products to be $5.79 this year due to its superior return on equity (ROE) rate at an impressive 29%. In the most recent quarter ending May 1st Sonoco Products showed earnings per share (EPS) performance exceeding analysts’ expectations at $1.40 based on actual revenue performance at only $1.73 billion compared to an estimated $1.84 billion. Nonetheless, year-over-year revenue has decreased by 2.3% which could indicate potential future issues in meeting sales targets.
Focusing on a Competitive Advantage
Sonoco Products’ competitive advantage lies not only in their financial performance but also in their strong environmental and sustainability efforts designed to reduce waste and increase recyclability wherever possible.
In conclusion, Sonoco Products provides investors with strong financial stability, a positive dividend outlook, and innovative solutions designed to promote sustainability responsibly that aims towards reducing its overall carbon footprint – thereby possibly continuing to attract socially responsible investment portfolios.
