Newell Brands Inc. (NASDAQ: NWL) stock fell -1.21% on Friday to $19.57 against a previous-day closing price of $19.81. With 2.47 million shares changed hands, the volume of the stock remained lighter than its average volume of 3.61 million shares. During the session, the Household & Personal Products company that operates in wider Consumer Defensive sector, reached to the highest price of $19.95 whereas the lowest price it dropped to was $19.54. The 52-week range on NWL shows that it touched its highest point at $26.45 and its lowest point at $17.40 during that stretch. It currently has a 1-year price target of $25.90. With its current market cap of 8.04 billion, NWL has annualized dividend of $0.92 while the current yield stands at 4.70%. Beta for the stock currently stands at 0.76.
Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of NWL was down-trending over the past week, with a drop of -5.41%, but this was up by 0.46% over a month. Three-month performance dropped to -15.94% while six-month performance fell -16.72%. The stock lost -21.18% in the past year, while it has lost -10.39% so far this year. A look at the trailing 12-month EPS for NWL yields 1.68 with Next year EPS estimates of 2.05. For the next quarter, that number is 0.56. This implies an EPS growth rate of 173.60% for this year and 9.62% for next year. EPS is expected to grow by 4.51% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 75.60%.
Float and Shares Shorts:
At present, 421.90 million NWL shares are outstanding with a float of 411.11 million shares on hand for trading. On Jul 14, 2022, short shares totaled 20.44 million, which was 4.94% higher than short shares on Jun 14, 2022. In addition to Mr. Ravichandra K. Saligram as the firm’s CEO & Director, Mr. Christopher H. Peterson serves as its Pres & CFO.
Through their ownership of 94.45% of NWL’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 53.49% of NWL, in contrast to 41.15% held by mutual funds. Shares owned by individuals account for 10.82%. As the largest shareholder in NWL with 10.13% of the stake, The Vanguard Group, Inc. holds 41,881,214 shares worth 41,881,214. A second-largest stockholder of NWL, Pzena Investment Management LLC, holds 36,251,194 shares, controlling over 8.77% of the firm’s shares. Icahn Associates Holding LLC is the third largest shareholder in NWL, holding 33,070,432 shares or 8.00% stake. With a 2.66% stake in NWL, the Vanguard Total Stock Market Index is the largest stakeholder. A total of 10,988,273 shares are owned by the mutual fund manager. The iShares Tr. – Select Dividend ETF, which owns about 2.34% of NWL stock, is the second-largest Mutual Fund holder. It holds 9,659,133 shares valued at 183.91 million. Vanguard Small Cap Index Fund holds 2.27% of the stake in NWL, owning 9,403,677 shares worth 179.05 million.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for NWL since 12 analysts follow the stock currently. There are 5 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 7 believe that the stock is worth HOLDING, 0 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With NWL analysts setting a high price target of $35.00 and a low target of $19.00, the average target price over the next 12 months is $25.09. Based on these targets, NWL could surge 78.85% to reach the target high and fall by -2.91% to reach the target low. Reaching the average price target will result in a growth of 28.21% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. NWL will report FY 2022 earnings on 02/10/2023. Analysts have provided yearly estimates in a range of $1.90 being high and $1.80 being low. For NWL, this leads to a yearly average estimate of $1.83. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Newell Brands Inc. surprised analysts by $0.10 when it reported $0.57 EPS against a consensus estimate of $0.47. The surprise factor in the prior quarter was $0.09. Based on analyst estimates, the high estimate for the next quarter is $0.56 and the low estimate is $0.51. The average estimate for the next quarter is thus $0.52.
Dividends & Yield:
In terms of dividends, NWL has a current ratio of $0.92, which is $0.92 over the trailing 12-months, while a dividend of $0.91 is likely to be paid on average over the next five years. Dividend yield is another indicator that appeals to many investors, and NWL currently yields $4.7. In the past year, NWL’s dividend yield has been $4.7, but when looking at the stock over the past five years, its yield has been $4.48. Accordingly, NWL has a current buyback yield of $0.0. This was $0.0 for the TTM.
Summary of Insider Activity:
Insiders traded NWL stock several times over the past three months with 0 Buys and 0 Sells. In these transactions, 0 shares were bought while 0 shares were sold. The number of buy transactions has increased to 17 while that of sell transactions has risen to 7 over the past year. The total number of shares bought during that period was 457,979 while 10,811,789 shares were sold.