Energizer (ENR) Upgraded to “Hold” at Zacks Investment Research

Zacks Investment Research upgraded shares of Energizer (NYSE:ENR) from a sell rating to a hold rating in a report released on Wednesday.

According to Zacks, “Shares of Energizer have outpaced the industry in the past one year. The company’s robust fourth quarter results is boosting investor's confidence on the stock. Notably, both top and bottom lines beat the Zacks Consensus Estimate during the quarter. Further, as part of its efforts to enhance innovation pipeline, the company is investing heavily to improve product performance and customer experience. To expand its auto portfolio, the company’s deal with Spectrum Brands also bodes well. Soft margins and high debt level act as deterrents for the company. We note that gross margin contracted 50 bps in fourth-quarter fiscal 2018, owing to currency headwinds. The company also expects high commodity costs to hurt margins. Further, high debt-to-capital ratio for the past few quarters add to the woes. Moreover, rising interest expenses are a concern. Such downsides pose a threat to the company’s bottom line in near future. “

ENR has been the subject of a number of other research reports. Jefferies Financial Group reissued a buy rating and issued a $80.00 target price on shares of Energizer in a report on Monday, October 22nd. Morgan Stanley reduced their target price on Energizer from $64.00 to $58.00 and set a hold rating for the company in a report on Monday, November 19th. SunTrust Banks reduced their target price on Energizer to $60.00 and set a buy rating for the company in a report on Monday, November 19th. ValuEngine lowered Energizer from a buy rating to a hold rating in a report on Thursday, November 1st. Finally, Citigroup reduced their target price on Energizer from $65.00 to $56.00 and set a neutral rating for the company in a report on Monday, November 19th. One research analyst has rated the stock with a sell rating, six have given a hold rating and four have given a buy rating to the stock. The stock has a consensus rating of Hold and a consensus target price of $65.30.

Shares of NYSE:ENR opened at $47.27 on Wednesday. The firm has a market cap of $2.82 billion, a price-to-earnings ratio of 14.03, a P/E/G ratio of 2.54 and a beta of 0.71. Energizer has a 12-month low of $44.15 and a 12-month high of $65.57. The company has a debt-to-equity ratio of 39.84, a current ratio of 1.56 and a quick ratio of 1.13.

Energizer (NYSE:ENR) last announced its quarterly earnings data on Thursday, November 15th. The company reported $0.83 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $0.81 by $0.02. The business had revenue of $457.20 million during the quarter, compared to analysts’ expectations of $459.64 million. Energizer had a return on equity of 549.70% and a net margin of 5.20%. The firm’s quarterly revenue was down 1.7% compared to the same quarter last year. During the same quarter in the previous year, the business earned $0.54 earnings per share. As a group, research analysts anticipate that Energizer will post 3.43 EPS for the current year.

The firm also recently announced a quarterly dividend, which will be paid on Thursday, December 13th. Shareholders of record on Friday, November 30th will be issued a $0.30 dividend. This is a positive change from Energizer’s previous quarterly dividend of $0.29. The ex-dividend date of this dividend is Thursday, November 29th. This represents a $1.20 dividend on an annualized basis and a dividend yield of 2.54%. Energizer’s dividend payout ratio (DPR) is presently 34.42%.

In related news, Director Bill G. Armstrong sold 1,000 shares of Energizer stock in a transaction on Monday, November 12th. The stock was sold at an average price of $61.11, for a total value of $61,110.00. Following the completion of the sale, the director now owns 23,387 shares of the company’s stock, valued at $1,429,179.57. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Robert V. Vitale acquired 4,160 shares of the business’s stock in a transaction that occurred on Monday, November 19th. The stock was purchased at an average cost of $47.89 per share, with a total value of $199,222.40. Following the acquisition, the director now directly owns 6,460 shares of the company’s stock, valued at $309,369.40. The disclosure for this purchase can be found here. In the last three months, insiders sold 3,000 shares of company stock valued at $180,570. Corporate insiders own 1.79% of the company’s stock.

Several institutional investors and hedge funds have recently modified their holdings of ENR. Point72 Hong Kong Ltd bought a new stake in shares of Energizer in the third quarter worth $100,000. Advisory Services Network LLC grew its holdings in shares of Energizer by 443.8% in the second quarter. Advisory Services Network LLC now owns 1,974 shares of the company’s stock worth $128,000 after acquiring an additional 1,611 shares during the period. Itau Unibanco Holding S.A. bought a new stake in shares of Energizer in the second quarter worth $129,000. Fortis Advisors LLC bought a new stake in shares of Energizer in the second quarter worth $137,000. Finally, Harvest Fund Management Co. Ltd grew its holdings in shares of Energizer by 128.7% in the third quarter. Harvest Fund Management Co. Ltd now owns 3,231 shares of the company’s stock worth $189,000 after acquiring an additional 1,818 shares during the period. 93.05% of the stock is owned by institutional investors.

Energizer Company Profile

Energizer Holdings, Inc, together with its subsidiaries, manufactures, markets, and distributes household batteries, specialty batteries, and lighting products worldwide. It offers lithium, alkaline, carbon zinc, nickel metal hydride, zinc air, and silver oxide batteries under the Energizer and Eveready brands, as well as primary, rechargeable, specialty, and hearing aid products.

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