Does a Barclays Downgrade Make Shares of Sonoco Products (NYSE:SON) a Sell?

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Sonoco Products (NYSE:SON) Receives a Downgrade

It will be interesting to watch the trading activity for Sonoco Products (NYSE:SON) today as Barclays lowered the shares of the stock from a “Equal Weight” rating to a “Underweight”. In addition to this downgrade, analysts at Barclays set a $38.0 target PPS which is a change of -11.48%.

From a total of 10 analysts covering Sonoco Products Company (NYSE:SON) stock, 3 rate it a ”Buy”, 1 a “Sell”, and 9 a ”Hold”. This means that 23% of the ratings are positive. The highest target price is $50 while the lowest target price is $41. The mean of all analyst targets is $44.6 with a 6.64% above today’s ($41.57) stock price. Sonoco Products Company was the topic of 8 analyst reports since August 7, 2015 according to the firm StockzIntelligence Inc. Macquarie Research upgraded shares on November 23 to “Outperform” rating. Zacks downgraded SON stock in a recent report from September 7 to “Sell” rating.

Approximately 559,406 shares of stock traded hands or 13.42% up from the average. Sonoco Products Co (NYSE:SON) has declined 4.90% since May 4, 2015 and is downtrending. It has underperformed by 3.82% the S&P500.

The overall sentiment of institutions has decreased to 0.96 in Q2 2015. Its down 0.25, from 1.21 in 2015Q2. The ratio worsened, as 42 institutions have sold all the shares of Sonoco Products Co that they owned while 108 funds have taken shares off the table. 32 funds have purchased shares for the first time while 112 added to their positions. These institutions now hold 60.63 million shares or 9.56% less than the 67.04 million shares they owned in 2015Q2.

The Fund Speece Thorson Capital Group Inc currently is holding shares equating to 3.72% of its total portfolio in Sonoco Products Co representing a total of 396,509 shares. Another fund,Evanston Investments Inc. Dba Evanston Advisors, is holding a total of 150,164 shares equating to 1.88% of their holdings. Additionally, Shufro Rose & Co Llc has a 338,295 share stake in Sonoco Products Co which represents 1.53% of their total portfolio. The Fund, Capital Innovations Llc, based out of Wisconsin, has also built up a stake in the stock, which represents a total of 1.44% of their total portfolio. Finally Wharton Business Group Llc, a fund which is based in the state of Pennsylvania reported a total holdings of 353,256 shares.

Sonoco Products Company is a maker of industrial and consumer packaging products and a well-known provider of packaging services. The company has a market cap of $4.31 billion. The Firm operates in four divisions: Consumer Packaging, Paper and Industrial Converted Products, Display and Packaging, and Protective Solutions. It has 18.08 P/E ratio. The Firm has 335 locations in 33 countries.

According to Zacks Investment Research, “Sonoco is one of the world’s largest manufacturers of packaging materials for industrial and consumer markets. In addition, the company is one of the leading producers of recycled paperboard, utilizing more than a million tons of recovered paper annually in its papermaking operations. Sonoco products are used by many of the world’s leading industries, including food processing, beverages, textiles, supermarkets, plastics, papermaking, pharmaceuticals, material converting, material handling, agriculture, personal care, health care and many others.” Get a free copy of the Zacks research report on Sonoco Products Co (SON).

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