In a challenging economic environment, shares of Sonoco Products Company (NYSE: ) hit a new 52-week low, falling to $46.44. According to InvestingPro analysis, the company maintains a “GOOD” financial health rating and has demonstrated outstanding dividend consistency, increasing payouts for 42 consecutive years. The packaging giant, known for its diverse portfolio of packaging materials and solutions, has faced issues that have pressured shares lower. Over the past year, Sonoco’s stock has seen a significant decline, with a one-year total return of -14.34%. Despite the current market pressure, three analysts recently revised their earnings estimates upwards, with the stock currently trading below its fair value. This decline reflects broader market trends, as investors recalibrate their expectations in light of global economic uncertainties and industry-specific challenges. Despite current lows, Sonoco’s position as a key player in the packaging sector indicates potential for recovery as market conditions develop. Discover more valuable insights on SON and over 1,400 other stocks through comprehensive Pro Research Reports, available exclusively at InvestingPro.
In other recent news, Sonoco Products Company has agreed to sell its thermoformed and flexible packaging business (NYSE: ) to TOPPAN Holdings Inc. for $1.8 billion. The company intends to use the proceeds from the sale to repay existing debt. This decision is in line with Sonoco’s strategy to simplify its portfolio and focus on its core segments of industrial paper and consumer packaging.
Sonoco Products also reported mixed results for the third quarter of 2024, with sales reaching $1.68 billion and adjusted earnings per share of $1.49. Operational challenges are offset by significant productivity savings. The company confirmed the closing of the Eviosys acquisition in the fourth quarter of 2024, which is expected to be earnings accretive.
Truist Securities initiated coverage of Sonoco Products with a Buy rating, highlighting the potential for multiple expansion. Conversely, Baird adjusted its outlook for Sonoco, lowering its price target to $55, while maintaining a Neutral rating due to the company’s ongoing restructuring efforts. These are one of the recent developments in the company’s operations.
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