Avery Dennison Corporation (NYSE: AVY) Seen Running Too Hot, Let’s Look At This More Closely

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T. Rowe Price Associates, Inc. (I. recently announced the acquisition of new stake in Avery Dennison Corporation (NYSE:AVY). The institutional investor has increased its shareholding in the Industrials company by 1.79% to 6.33 million shares with purchase of 0.11 million shares. This fresh investment now brings its stake to 7.60% valued currently at $722.18 million. In addition, JPMorgan Investment Management, I. raised its holdings by 0.42 million to 2.24 million shares. And Victory Capital Management, Inc. has lifted its position by 6.43% or 0.12 million shares – to 2.05 million shares.

With over 0.78 million Avery Dennison Corporation (AVY) shares trading Tuesday and a closing price of $115.82 on the day, the dollar volume was approximately $90.83 million. The shares have shown a negative weekly performance of -0.03% and its price on 07/14/20 gained nearly 3.27%. Currently, there are 83.30M common shares owned by the public and among those 82.78M shares have been available to trade.

An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 14 analysts who have offered their price forecasts for AVY have a consensus price objective of $123.40. The analysts have set the share’s price value over the next 12 months at a high of $140.00 and a low of $105.00 should the stock experience a downside. Incidentally, analysts’ outlook for the Avery Dennison Corporation stock is 2.40 for the next 12 months. The average price target is 7.2% above its last price level and an upside to the estimated low will see the stock lose -10.3% over that period. But an upside of 17.27% will see the stock hit the forecast high price target while mean target price for the stock is $125.50.

Insiders at the company have transacted a total of 72 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 35 of these insider trades were purchases, accounting for 103,335 shares. Insider sales of the common stock occurred on 37 occasions, with total insider shares sold totaling 169,854 shares.

The top 3 mutual fund holders in Avery Dennison Corporation are Vanguard Total Stock Market Index, Vanguard Mid Cap Index Fund, and T Rowe Price Mid Cap Growth Fund. Vanguard Total Stock Market Index owns 2.41 million shares of the company’s stock, all valued at over $274.8 million. The company sold 13175.0 shares recently to bring their total holdings to about 2.89% of the shares outstanding. Vanguard Mid Cap Index Fund bought 12421.0 shares to see its total holdings expand to 2.18 million shares valued at over $248.59 million and representing 2.62% of the shares outstanding. T Rowe Price Mid Cap Growth Fund sold 1400.0 shares to bring its total holdings to over 2.0 million shares at a value of $228.02 million. T Rowe Price Mid Cap Growth Fund now owns shares totaling to 2.40% of the shares outstanding.

Shares of Avery Dennison Corporation (NYSE: AVY) opened at $112.12, down -$0.03 from a prior closing price of $112.15. However, the script later closed the day at $115.82, up 3.27%. The company’s stock has a 5-day price change of -0.03% and 4.79% over the past three months. AVY shares are trading -11.47% year to date (YTD), with the 12-month market performance up to 2.08% higher. It has a 12-month low price of $76.96 and touched a high of $141.09 over the same period. Currently, 0.78 million shares have been traded, compared to an average intraday trading volume of 559.17K shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by 1.63%, 3.49%, and -2.87% respectively.

Institutional ownership of Avery Dennison Corporation (NYSE: AVY) shares accounts for 92.00% of the company’s 83.30M shares outstanding. Mutual fund holders own 36.31%, while other institutional holders and individual stakeholders account for 54.77% and 1.61% respectively.

It has a market capitalization of $9.62B and a beta (3y monthly) value of 1.19. The stock’s trailing 12-month PE ratio is 16.77, while the earnings-per-share (ttm) stands at $6.91. The company has a PEG of 2.13 and a Quick Ratio of 0.90 with the debt-to-equity ratio at 2.40. Price movements for the stock have been influenced by the stock’s volatility, which stands at 2.67% over the week and 2.73% over the month.

Analysts forecast that Avery Dennison Corporation (AVY) will achieve an EPS of $1.1 for the current quarter, $1.34 for the next quarter and $6.54 for 2021. The lowest estimate earnings-per-share for the quarter is $0.94 while analysts give the company a high EPS estimate of $1.19. Comparatively, EPS for the current quarter was $1.72 a year ago. Earnings per share for the fiscal year are expected to decrease by -32.80%, and 13.50% over the next financial year. EPS should grow at an annualized rate of 7.89% over the next five years, compared to 6.70% over the past 5-year period.

Looking at the support for the AVY, a number of firms have released research notes about the stock. Loop Capital stated their Buy rating for the stock in a research note on March 20, 2020, with the firm’s price target at $125. Argus coverage for the Avery Dennison Corporation (AVY) stock in a research note released on January 07, 2020 offered a Hold rating with a price target of. Morgan Stanley was of a view on December 17, 2019 that the stock is Equal-Weight, while Citigroup gave the stock Neutral rating on October 24, 2019, issuing a price target of $132- $136. BofA/Merrill on their part issued Buy rating on September 13, 2019.

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