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

Sonoco Products Company (NYSE:SON) gapped up before the market opened on Thursday after the company announced better than expected quarterly earnings. 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 for the quarter, beating analysts’ consensus estimates of $1.47 by $0.04. Sonoco Products had a net margin of 8.41% and a return on equity of 16.60%. The company had revenue of $1.89 billion during the quarter, compared to the consensus estimate of $1.88 billion. During the same period in the prior year, the company earned $1.37 EPS. Sonoco Products’s 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 Dividend Announcement

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

Wall Street Analyst Weigh In

Several research firms have issued reports on SON. 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 raised their price objective on Sonoco Products from $65.00 to $69.00 and gave the stock a “buy” rating in a research note on Tuesday, July 14th. Argus raised Sonoco Products to a “hold” rating in a research report on Monday, April 20th. UBS Group reduced their target price on Sonoco Products from $62.00 to $59.00 and set a “neutral” rating for the company in a report on Friday, April 10th. Finally, Robert W. Baird decreased their price target on Sonoco Products from $60.00 to $55.00 and set a “neutral” rating for the company in a research report on Thursday, April 23rd. Five research analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and an average price target of $61.33.

Insiders Place Their Bets

In other Sonoco Products news, insider James A. Harrell III bought 6,753 shares of the stock in a transaction on Monday, April 27th. The shares were bought at an average price of $50.37 per share, with a total value of $340,148.61. Following the purchase, the insider directly owned 10,070 shares in the company, valued at $507,225.90. The trade was a 203.59% increase in their position. The acquisition was disclosed in a document filed with the SEC, which can be accessed through the SEC website. 0.98% of the stock is currently owned by company insiders.

Institutional Trading of Sonoco Products

Institutional investors have recently made changes to their positions in the stock. Wasatch Advisors LP grew its position in Sonoco Products by 15.9% during the second quarter. Wasatch Advisors LP now owns 81,167 shares of the industrial products company’s stock valued at $4,574,000 after purchasing an additional 11,130 shares in the last quarter. Evanson Financial LLC purchased a new stake in Sonoco Products in the 2nd quarter worth approximately $165,000. Hilltop National Bank boosted its stake in shares of Sonoco Products by 49.7% during the 2nd quarter. Hilltop National Bank now owns 1,777 shares of the industrial products company’s stock valued at $100,000 after buying an additional 590 shares during the period. Access Investment Management LLC boosted its stake in shares of Sonoco Products by 11.5% during the 1st quarter. Access Investment Management LLC now owns 289,855 shares of the industrial products company’s stock valued at $15,678,000 after buying an additional 29,980 shares during the period. Finally, Bank of America Corp DE grew its holdings in shares of Sonoco Products by 19.0% during the 1st quarter. Bank of America Corp DE now owns 3,312,638 shares of the industrial products company’s stock valued at $179,181,000 after acquiring an additional 528,292 shares in the last quarter. 77.69% of the stock is currently owned by institutional investors and hedge funds.

Sonoco Products Stock 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 firm has a market capitalization of $5.57 billion, a PE ratio of 8.96, a PEG ratio of 1.20 and a beta of 0.37. The firm’s fifty day moving average price is $51.93 and its 200 day moving average price is $51.97.

About Sonoco Products

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.