In a challenging market environment, Avery Dennison Corporation (NYSE:AVY) stock has reached its 52-week low, trading at $185.48. According to InvestingPro analysis, the company currently trades at a P/E ratio of 22.6x with a healthy EBITDA of $1.4 billion. This price level reflects a notable downturn for the company, which specializes in pressure-sensitive materials and a variety of tickets, tags, labels, and other converted products. Over the past year, Avery Dennison has seen its stock price decrease by 7.53%, yet maintains strong fundamentals with a 29% gross profit margin and a remarkable 54-year streak of consistent dividend payments. InvestingPro analysis reveals 7 additional key insights about AVY’s financial health and growth potential, available exclusively to subscribers. This recent low could attract the attention of value investors looking for potential rebounds or signal caution to those concerned about further declines, especially considering the company’s stable 1.87% dividend yield and low historical price volatility.
In other recent news, Avery Dennison Corporation reported a 9% increase in adjusted earnings per share year-over-year, reaching $2.33 in the third quarter. The company also raised its full-year earnings guidance to between $9.35 and $9.50 per share, indicating anticipated organic sales growth between 4.5% and 5%. Additionally, Avery Dennison successfully issued €500 million in senior notes due in 2034, utilizing the proceeds to repay existing debt and for general corporate purposes.
In leadership changes, Gregory S. Lovins, the company’s Senior Vice President and Chief Financial Officer, has taken a medical leave of absence. Consequently, Danny G. Allouche has been appointed as the Interim Chief Financial Officer. Additionally, board member Ken C. Hicks resigned to assume a new role as President and CEO of PetSmart LLC.
In analyst notes, Citi reduced its price target on Avery Dennison from $240 to $228, maintaining a Neutral rating, while BMO Capital Markets reduced its price target to $247 from $252, maintaining an Outperform rating. Both firms noted a pattern of lowered sales growth outlooks for Avery Dennison’s Industrial Labels segment.
Avery Dennison is also expanding its Radio-Frequency Identification (RFID) technology into the food category, piloting this technology in approximately 2,800 Kroger (NYSE:KR) bakeries. The company’s restructuring actions are expected to save over $55 million. These are the recent developments for Avery Dennison.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.