Sonoco Products Co. (SON): Are Investors Missing The Big Picture?

Sonoco Products Co. (NYSE:SON) does about 680.45K shares in volume on a normal day but saw 1163202 shares change hands in the recent trading day. The company now has a market cap of 4.75B USD. Its current market price is $48.33, marking a decrease of -1.33% compared to the previous close of $48.98. The 52 week high reached by this stock is $61.73 whilst the lowest price level in 52 weeks is $48.22. The script in recent trading has seen the stock touch a high of $105 and a low of $58.

Sonoco Products Co. (SON) has a 20-day trading average at $53.62 and the current price is -21.71% off the 52-week high compared with 0.23% distance from its 52-week low. The 50-day simple moving average of the closing price is $57.05 and its 200-day simple moving average is $56.05. If we look at the stock’s price movements over the week, volatility stands at 1.92%, which increases to 2.25% over 1 month. It is also key to look at other market indicators of price movement for the stock, where we see that the relative strength index (RSI) is at 17.63 to suggest the stock is oversold.

The consensus objective for the share price is $60.80, suggesting that the stock has a potential upside of 20.51% over the period. The median price target is 25.65% away from the current levels at $65.

6 analysts have rated it as a buy and 1 have advised that investors hold their positions. The consensus recommendation rating is Buy and Wall Street’s advice is for investors to Moderate Buy the stock.

Seaport Research Partners upgraded the stock to “Buy” from Neutral on March 20, 2023 at a price target of $65. Argus upgraded its price target at $67.

Sonoco Products Co. (SON) stock is down -3.94% over the week and -19.49% over the past month. Its price is -13.50% year-to-date and -15.31% over the past year.

The stock last released its quarterly earnings report for quarter ended 3/31/2024, with the company’s earnings per share (EPS) of 1.38 below consensus estimates by -0.1. The company’s next earnings report forecasts estimating quarterly EPS at 1.25 and 4.99 for whole year. Expected sales for next quarter are $1.75B, which analysts say will come at $6.75B for the current fiscal year and next year at $6.9B. In addition, estimates put the company’s current quarterly revenue at an average of $1.71B.

Its 12-month price target is $65. To reach the target analysts have set, the stock logically needs to grow 20.51 percent from here. Of course, the average price target is just what the average analysts believe a stock will be worth in the next 52 weeks, and is only one metric. There are analysts with lower targets than the average, including one bearish Wall Street research firm advocating investors to wait for the price to pull back to $58, given the recent momentum. And then, on the bullish side of things, one analyst is expecting the stock to peak at $105.

Outstanding shares total 97.96M with insiders holding 0.64% of the shares and institutional holders owning 79.83% of the company’s common stock. The company has a return on investment of 7.35% and return on equity of 16.97%. The price to earnings ratio (P/E ratio) amounts to 12.21 while the forward price to earnings ratio is 8.99. The beta has a value of 0.68. Price to book ratio is 1.96 and price to sales ratio is 0.71.