Sonoco Products (NYSE:SON) Shares Gap Up Following Earnings Beat

Sonoco Products Company (NYSE:SON) shares gapped up prior to trading on Thursday following a stronger than expected earnings report. The stock had previously closed at $55.15, but opened at $57.66. Sonoco Products shares last traded at $56.7370, with a volume of 327,445 shares trading hands.

The industrial products company reported $1.51 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.47 by $0.04. Sonoco Products had a net margin of 13.57% and a return on equity of 16.50%. The business had revenue of $1.89 billion during the quarter, compared to analysts’ expectations of $1.88 billion. During the same quarter last year, the company posted $1.37 earnings per share. The business’s quarterly revenue was down 1.3% on a year-over-year basis. Sonoco Products has set its FY 2026 guidance at 5.800-6.200 EPS.

Sonoco Products Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, September 10th. Investors of record on Monday, August 10th will be paid a $0.54 dividend. The ex-dividend date of this dividend is Monday, August 10th. This represents a $2.16 dividend on an annualized basis and a yield of 3.8%. Sonoco Products’s dividend payout ratio (DPR) is currently 21.18%.

Wall Street Analysts Forecast Growth

A number of brokerages have recently issued reports on SON. Wall Street Zen lowered Sonoco Products from a “buy” rating to a “hold” rating in a research note on Saturday, May 2nd. Citigroup lifted their target price on Sonoco Products from $63.00 to $66.00 and gave the stock a “buy” rating in a research report on Thursday, July 9th. Weiss Ratings lowered shares of Sonoco Products from a “hold (c+)” rating to a “hold (c)” rating in a research report on Monday. Bank of America increased their target price on Sonoco Products from $65.00 to $69.00 and gave the stock a “buy” rating in a research note on Tuesday, July 14th. Finally, Truist Financial decreased their price target on Sonoco Products from $65.00 to $64.00 and set a “buy” rating on the stock in a research note on Wednesday, July 15th. Five research analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the stock. Based on data from MarketBeat, the company has a consensus rating of “Hold” and a consensus price target of $61.33.

Insider Activity at Sonoco Products

In other Sonoco Products news, CFO Paul Joachimczyk acquired 8,058 shares of the company’s stock in a transaction that occurred on Friday, April 24th. The shares were purchased at an average price of $49.64 per share, for a total transaction of $399,999.12. Following the completion of the purchase, the chief financial officer directly owned 28,558 shares in the company, valued at $1,417,619.12. The trade was a 39.31% increase in their ownership of the stock. The acquisition was disclosed in a filing with the SEC, which is accessible through this link. Also, insider James A. Harrell III bought 6,753 shares of the business’s stock in a transaction on Monday, April 27th. The stock was acquired at an average cost of $50.37 per share, for a total transaction of $340,148.61. Following the acquisition, the insider directly owned 10,070 shares of the company’s stock, valued at $507,225.90. The trade was a 203.59% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. Corporate insiders own 0.98% of the company’s stock.

Institutional Trading of Sonoco Products

Several hedge funds have recently bought and sold shares of SON. DAVENPORT & Co LLC grew its holdings in shares of Sonoco Products by 202.0% in the 4th quarter. DAVENPORT & Co LLC now owns 31,053 shares of the industrial products company’s stock worth $1,355,000 after acquiring an additional 20,771 shares during the last quarter. SG Americas Securities LLC grew its position in Sonoco Products by 10,238.5% during the fourth quarter. SG Americas Securities LLC now owns 728,138 shares of the industrial products company’s stock valued at $31,776,000 after purchasing an additional 721,095 shares in the last quarter. UBS Group AG grew its position in Sonoco Products by 57.8% in the fourth quarter. UBS Group AG now owns 303,784 shares of the industrial products company’s stock worth $13,257,000 after acquiring an additional 111,295 shares in the last quarter. LSV Asset Management raised its stake in shares of Sonoco Products by 95.7% in the fourth quarter. LSV Asset Management now owns 1,563,390 shares of the industrial products company’s stock valued at $68,226,000 after purchasing an additional 764,590 shares in the last quarter. Finally, Thompson Siegel & Walmsley LLC bought a new stake in Sonoco Products during the fourth quarter worth about $7,774,000. 77.69% of the stock is currently owned by institutional investors.

Sonoco Products Price Performance

The company has a current ratio of 0.96, a quick ratio of 0.54 and a debt-to-equity ratio of 0.97. The company has a 50 day moving average price of $51.79 and a 200 day moving average price of $51.88. The company has a market capitalization of $5.61 billion, a price-to-earnings ratio of 5.56, a PEG ratio of 1.19 and a beta of 0.37.

Sonoco Products Company Profile

Sonoco Products Company (NYSE: SON) is a global provider of diversified packaging solutions, serving a wide range of consumer, industrial and retail markets. The company offers a broad portfolio that includes rigid paper and plastic containers, flexible packaging, industrial core and tube products, thermoformed plastics, retail point-of-purchase displays, and packaging supply chain services. Through its solutions, Sonoco helps customers in food and beverage, personal care, chemicals, healthcare, home and garden, and electronics industries address their packaging needs, improve product shelf appeal, and optimize logistics efficiency.

With operations in more than 30 countries across North America, South America, Europe, Asia and Africa, Sonoco leverages a global network of manufacturing facilities, recycling centers and distribution channels to meet the demands of multinational and regional customers.