Silgan (NASDAQ:SLGN) Cut to Sell at Zacks Investment Research

Zacks Investment Research downgraded shares of Silgan (NASDAQ:SLGN) from a hold rating to a sell rating in a research report sent to investors on Tuesday, Zacks.com reports. Zacks Investment Research currently has $32.00 price target on the industrial products company’s stock.

According to Zacks, “Silgan Holdings expects adjusted earnings per share between $2.10 and $2.20 in 2019 compared with $2.08 in 2018. The Closures segment will gain from the Dispensing Systems acquisition, manufacturing efficiencies and higher unit volumes. The plastic container business will benefit from manufacturing efficiencies and higher volumes. However, unit volumes in the metal container business are projected to decline in 2019 owing to customer pre-buy activity at the end of 2018. Inflated material and freight costs will dent margins in 2019. Nevertheless, acquisitions and investment in capacity will drive growth. Incessant focus on cost control will help sustain margins. The company’s estimates for the current fiscal have undergone positive revisions lately. Further, the company has a positive record of earnings surprises in the last few quarters.”

Several other brokerages also recently weighed in on SLGN. Citigroup raised their target price on shares of Silgan from $34.00 to $36.00 and gave the company a buy rating in a research note on Thursday, July 11th. BidaskClub upgraded shares of Silgan from a sell rating to a hold rating in a research note on Wednesday, September 25th. ValuEngine downgraded shares of Silgan from a sell rating to a strong sell rating in a research note on Wednesday, October 2nd. Finally, JPMorgan Chase & Co. upgraded shares of Silgan from an underweight rating to a neutral rating and raised their target price for the company from $31.00 to $33.00 in a research note on Wednesday, July 17th. Two investment analysts have rated the stock with a sell rating, six have assigned a hold rating and three have assigned a buy rating to the stock. The stock presently has a consensus rating of Hold and an average price target of $30.38.

SLGN traded up $0.55 during trading on Tuesday, hitting $30.85. The stock had a trading volume of 18,065 shares, compared to its average volume of 347,903. The company has a market capitalization of $3.31 billion, a PE ratio of 14.75, a PEG ratio of 1.77 and a beta of 0.77. Silgan has a twelve month low of $22.24 and a twelve month high of $31.69. The company has a debt-to-equity ratio of 1.96, a quick ratio of 0.49 and a current ratio of 0.98. The stock has a 50 day simple moving average of $29.71 and a two-hundred day simple moving average of $30.00.

Silgan (NASDAQ:SLGN) last announced its earnings results on Wednesday, July 24th. The industrial products company reported $0.55 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $0.54 by $0.01. The company had revenue of $1.09 billion during the quarter, compared to the consensus estimate of $1.08 billion. Silgan had a net margin of 4.46% and a return on equity of 26.45%. Silgan’s revenue was up 3.2% compared to the same quarter last year. During the same period last year, the firm earned $0.52 earnings per share. On average, equities research analysts anticipate that Silgan will post 2.19 EPS for the current year.

In other news, insider Thomas James Snyder sold 10,444 shares of Silgan stock in a transaction on Thursday, August 8th. The shares were sold at an average price of $31.02, for a total transaction of $323,972.88. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director John W. Alden sold 2,000 shares of Silgan stock in a transaction on Thursday, August 29th. The stock was sold at an average price of $29.71, for a total transaction of $59,420.00. Following the sale, the director now owns 67,331 shares of the company’s stock, valued at $2,000,404.01. The disclosure for this sale can be found here. Insiders own 30.32% of the company’s stock.

Several large investors have recently bought and sold shares of the company. Krane Funds Advisors LLC purchased a new position in shares of Silgan during the second quarter worth $26,000. C M Bidwell & Associates Ltd. purchased a new position in shares of Silgan during the second quarter worth $40,000. Point72 Asset Management L.P. purchased a new position in shares of Silgan during the second quarter worth $40,000. Harel Insurance Investments & Financial Services Ltd. purchased a new position in shares of Silgan during the second quarter worth $51,000. Finally, Huntington National Bank purchased a new position in shares of Silgan during the second quarter worth $53,000. Institutional investors and hedge funds own 65.84% of the company’s stock.

About Silgan

Silgan Holdings Inc, together with its subsidiaries, manufactures and sells rigid packaging for consumer goods products worldwide. It operates through three segments: Metal Containers, Closures, and Plastic Containers. The Metal Containers segment manufactures and sells steel and aluminum containers for food products, such as pet food, vegetables, soups, proteins, tomato based products, adult nutritional drinks, fruits, and other miscellaneous food products, as well as general line metal containers primarily for chemicals.

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