Newell Brands (NWL) Rating Lowered to Sell at Zacks Investment Research

Zacks Investment Research lowered shares of Newell Brands (NYSE:NWL) from a hold rating to a sell rating in a research report sent to investors on Wednesday morning.

According to Zacks, “Newell lagged the industry in the last three months due to the weak margins trend in the last few quarters, which continued into the fourth quarter. Though the company’s results outpaced estimates in fourth-quarter 2017, both the top and bottom lines declined year over year. Results in the quarter were hurt by lost contributions from divested operations, lower core sales volume, adverse pricing and commodity cost inflation. However, Newell is on track with the execution of its transformation plan through market share gains, point of sale growth, e-commerce improvement and cost-savings plans. Also, the plan focuses on enhancing operational efficiency and boosting shareholder value. Further, the company’s Project Renewal Program along with financial strength bode well. Estimates have been stable ahead of the first quarter earnings release.”

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NWL has been the topic of several other research reports. BMO Capital Markets dropped their price target on shares of Newell Brands to $25.00 and set a market perform rating on the stock in a research note on Friday, January 26th. Vetr raised shares of Newell Brands from a buy rating to a strong-buy rating and set a $29.00 price target on the stock in a research note on Monday, March 26th. Bank of America downgraded shares of Newell Brands from a buy rating to a neutral rating in a research note on Thursday, January 25th. SunTrust Banks reaffirmed a buy rating and set a $35.00 price target on shares of Newell Brands in a research note on Tuesday, January 30th. Finally, ValuEngine downgraded shares of Newell Brands from a buy rating to a hold rating in a research note on Sunday, December 31st. Two equities research analysts have rated the stock with a sell rating, thirteen have assigned a hold rating, five have given a buy rating and one has issued a strong buy rating to the company’s stock. Newell Brands presently has a consensus rating of Hold and an average target price of $33.06.

Shares of NWL stock opened at $26.44 on Wednesday. Newell Brands has a 52 week low of $23.85 and a 52 week high of $55.08. The company has a current ratio of 1.41, a quick ratio of 0.83 and a debt-to-equity ratio of 0.70. The firm has a market capitalization of $12,828.69, a PE ratio of 9.61, a price-to-earnings-growth ratio of 1.67 and a beta of 0.81.

Newell Brands (NYSE:NWL) last released its quarterly earnings results on Friday, February 16th. The company reported $0.68 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $0.67 by $0.01. Newell Brands had a net margin of 18.65% and a return on equity of 10.47%. The firm had revenue of $3.74 billion for the quarter, compared to the consensus estimate of $3.69 billion. During the same quarter in the previous year, the firm posted $0.80 EPS. The firm’s quarterly revenue was down 9.5% on a year-over-year basis. equities analysts expect that Newell Brands will post 2.67 earnings per share for the current year.

Several institutional investors and hedge funds have recently added to or reduced their stakes in NWL. MUFG Americas Holdings Corp increased its position in shares of Newell Brands by 566.7% in the 4th quarter. MUFG Americas Holdings Corp now owns 3,380 shares of the company’s stock worth $104,000 after purchasing an additional 2,873 shares during the last quarter. Cerebellum GP LLC bought a new stake in shares of Newell Brands in the 4th quarter worth about $123,000. Patten Group Inc. increased its position in shares of Newell Brands by 5,263.6% in the 4th quarter. Patten Group Inc. now owns 6,919 shares of the company’s stock worth $214,000 after purchasing an additional 6,790 shares during the last quarter. Balter Liquid Alternatives LLC bought a new stake in shares of Newell Brands in the 4th quarter worth about $215,000. Finally, Steward Partners Investment Advisory LLC bought a new stake in shares of Newell Brands in the 3rd quarter worth about $238,000. 92.82% of the stock is owned by institutional investors.

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Newell Brands Company Profile

Newell Brands Inc designs, manufactures, sources, and distributes consumer and commercial products worldwide. The company's Live segment offers household products, including kitchen appliances, gourmet cookware, bakeware and cutlery, food storage and home storage products, fresh preserving products, and home fragrance products; and baby gear, infant care, and health products primarily under Aprica, Baby Jogger, Ball, Calphalon, Chesapeake Bay Candle, Crock-Pot, FoodSaver, Graco, Mr.

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