Reviewing The Case For Amcor plc (AMCR) Going Higher


SSgA Funds Management, Inc. recently announced the acquisition of new stake in Amcor plc (NYSE:AMCR). The institutional investor has increased its shareholding in the Consumer Cyclical company by 6.05% to 93.18 million shares with purchase of 5.32 million shares. This fresh investment now brings its stake to 5.92% valued currently at $959.73 million. In addition, BlackRock Fund Advisors raised its holdings by 17.52 million to 84.46 million shares. And Geode Capital Management LLC has lifted its position by 16.90% or 3.64 million shares – to 25.21 million shares.

With over 5.54 million Amcor plc (AMCR) shares trading Tuesday and a closing price of $10.87 on the day, the dollar volume was approximately $60.24 million. The shares have shown a negative weekly performance of -1.90% and its price on 08/25/20 lost nearly 0.00%. Currently, there are 1.59B common shares owned by the public and among those 1.57B 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: 15 analysts who have offered their price forecasts for AMCR have a consensus price objective of $11.59. The analysts have set the share’s price value over the next 12 months at a high of $12.88 and a low of $9.50 should the stock experience a downside. Incidentally, analysts’ outlook for the Amcor plc stock is 2.60 for the next 12 months. The average price target is 3.89% above its last price level and an upside to the estimated low will see the stock lose -14.42% over that period. But an upside of 15.61% will see the stock hit the forecast high price target while mean target price for the stock is $11.70.

The top 3 mutual fund holders in Amcor plc are Vanguard 500 Index Fund, Government Pension Fund – Global, and SPDR S&P Dividend ETF. Vanguard 500 Index Fund owns 32.48 million shares of the company’s stock, all valued at over $334.51 million. The company sold -0.18 million shares recently to bring their total holdings to about 2.06% of the shares outstanding. Government Pension Fund – Global bought 17.25 million shares to see its total holdings expand to 23.47 million shares valued at over $241.75 million and representing 1.49% of the shares outstanding. SPDR S&P Dividend ETF sold 6294.0 shares to bring its total holdings to over 20.54 million shares at a value of $211.54 million. SPDR S&P Dividend ETF now owns shares totaling to 1.30% of the shares outstanding.

Shares of Amcor plc (NYSE: AMCR) opened at $10.90, up $0.03 from a prior closing price of $10.87. However, the script later closed the day at $10.87, down 0.00%. The company’s stock has a 5-day price change of -1.90% and 10.24% over the past three months. AMCR shares are trading 0.28% year to date (YTD), with the 12-month market performance up to 11.83% higher. It has a 12-month low price of $5.80 and touched a high of $11.59 over the same period. Currently, 5.54 million shares have been traded, compared to an average intraday trading volume of 10.20 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by -0.34%, 2.29%, and 10.11% respectively.

Institutional ownership of Amcor plc (NYSE: AMCR) shares accounts for 36.30% of the company’s 1.59B shares outstanding. Mutual fund holders own 14.72%, while other institutional holders and individual stakeholders account for 23.19% and 0.20% respectively.

It has a market capitalization of $17.38B. The stock’s trailing 12-month PE ratio is 28.02, while the earnings-per-share (ttm) stands at $0.39. The company has a PEG of 5.15 and a Quick Ratio of 0.70 with the debt-to-equity ratio at 1.38. Price movements for the stock have been influenced by the stock’s volatility, which stands at 2.24% over the week and 2.24% over the month.

Analysts forecast that Amcor plc (AMCR) will achieve an EPS of $Ameresco, Inc. for the current quarter, $34.21 for the next quarter and $Stocks for Type. The lowest estimate earnings-per-share for the quarter is $AMCR while analysts give the company a high EPS estimate of $Amkor Technology, Inc. Comparatively, EPS for the current quarter was $ACM Research, Inc. a year ago. Earnings per share for the fiscal year are expected to decrease by -26.70%, and 7.49% over the next financial year. EPS should grow at an annualized rate of 5.45% over the next five years, compared to -8.00% over the past 5-year period.

If you are looking to buy this stock, then you may note that the average analyst recommendation by 15 brokerage firm advisors rate Amcor plc (AMCR) as a “Moderate Buy” at a consensus score of 2.60. Specifically, 6 Wall Street analysts polled rate the stock as a buy, while 7 of the 15 advise that investors “hold,” and 1 rated it as a “Sell.”

Looking at the support for the AMCR, a number of firms have released research notes about the stock. BofA Securities stated their Neutral rating for the stock in a research note on July 08, 2020, with the firm’s price target at $11.50. Credit Suisse coverage for the Amcor plc (AMCR) stock in a research note released on June 10, 2020 offered a Neutral rating with a price target of. Jefferies was of a view on April 23, 2020 that the stock is Hold, while Deutsche Bank gave the stock Buy rating on March 19, 2020, issuing a price target of $7.50. BMO Capital Markets on their part issued Market Perform rating on March 13, 2020.


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