Sonoco Products (NYSE:SON) Shares Gap Down on Disappointing Earnings

Shares of Sonoco Products Company (NYSE:SON) gapped down before the market opened on Wednesday following a weaker than expected earnings announcement. The stock had previously closed at $56.79, but opened at $52.80. Sonoco Products shares last traded at $48.9510, with a volume of 732,979 shares trading hands.

The industrial products company reported $1.20 earnings per share for the quarter, missing analysts’ consensus estimates of $1.57 by ($0.37). Sonoco Products had a net margin of 13.57% and a return on equity of 16.72%. The company had revenue of $1.68 billion during the quarter, compared to analyst estimates of $1.88 billion. During the same quarter in the prior year, the business earned $1.38 EPS. The business’s quarterly revenue was down 1.9% on a year-over-year basis. Sonoco Products has set its FY 2026 guidance at 5.800-6.200 EPS.

Sonoco Products Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, June 10th. Stockholders of record on Friday, May 8th will be paid a dividend of $0.54 per share. The ex-dividend date of this dividend is Friday, May 8th. This is an increase from Sonoco Products’s previous quarterly dividend of $0.53. This represents a $2.16 annualized dividend and a dividend yield of 4.5%. Sonoco Products’s payout ratio is 21.05%.

Analyst Upgrades and Downgrades

Several equities analysts have recently issued reports on SON shares. Citigroup raised their price target on shares of Sonoco Products from $52.00 to $70.00 and gave the company a “buy” rating in a research note on Thursday, February 19th. Bank of America reaffirmed a “buy” rating on shares of Sonoco Products in a research note on Wednesday. Wall Street Zen raised shares of Sonoco Products from a “hold” rating to a “buy” rating in a research note on Saturday, February 7th. Deutsche Bank Aktiengesellschaft started coverage on shares of Sonoco Products in a research note on Wednesday, April 1st. They set a “buy” rating and a $63.00 price target for the company. Finally, Argus raised shares of Sonoco Products to a “hold” rating in a research note on Monday. Five equities research analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the company. Based on data from MarketBeat, Sonoco Products has an average rating of “Hold” and a consensus target price of $61.78.

Insiders Place Their Bets

In related news, insider Ernest D. Haynes III sold 1,581 shares of Sonoco Products stock in a transaction on Friday, February 27th. The shares were sold at an average price of $56.39, for a total transaction of $89,152.59. Following the completion of the transaction, the insider owned 9,377 shares of the company’s stock, valued at $528,769.03. This trade represents a 14.43% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. 0.98% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Sonoco Products

Hedge funds have recently bought and sold shares of the company. Baker Ellis Asset Management LLC increased its stake in Sonoco Products by 3.9% in the first quarter. Baker Ellis Asset Management LLC now owns 5,307 shares of the industrial products company’s stock valued at $287,000 after purchasing an additional 201 shares in the last quarter. Powell Investment Advisors LLC increased its stake in Sonoco Products by 1.0% in the fourth quarter. Powell Investment Advisors LLC now owns 20,718 shares of the industrial products company’s stock valued at $904,000 after purchasing an additional 203 shares in the last quarter. IFP Advisors Inc increased its stake in Sonoco Products by 8.6% in the fourth quarter. IFP Advisors Inc now owns 2,996 shares of the industrial products company’s stock valued at $131,000 after purchasing an additional 237 shares in the last quarter. SBI Securities Co. Ltd. increased its stake in Sonoco Products by 77.7% in the fourth quarter. SBI Securities Co. Ltd. now owns 590 shares of the industrial products company’s stock valued at $26,000 after purchasing an additional 258 shares in the last quarter. Finally, Hsbc Holdings PLC increased its stake in Sonoco Products by 5.2% in the fourth quarter. Hsbc Holdings PLC now owns 6,073 shares of the industrial products company’s stock valued at $265,000 after purchasing an additional 299 shares in the last quarter. Institutional investors own 77.69% of the company’s stock.

Sonoco Products Trading Down 16.0%

The company has a quick ratio of 0.60, a current ratio of 1.05 and a debt-to-equity ratio of 1.04. The stock has a market capitalization of $4.72 billion, a P/E ratio of 4.68, a P/E/G ratio of 1.14 and a beta of 0.50. The firm’s 50 day simple moving average is $54.36 and its two-hundred day simple moving average is $47.36.

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.