Avon Products, Inc. (AVP) Stock is Up Big After Receiving Huge Investment from Cerberus Capital


If you know a woman, than you probably know someone who uses some sort of Avon Products, Inc. (NYSE:AVP) product. That’s how popular their products are. Apparently Cerberus Capital Management LP believes the company will continue to succeed in a competitive market — so much so that they decided to invest $170 million to take over an 80.1% stake in the compay’s North American branch.

Additionally, Cerberus will also make a $435 million investment into Avon Products, Inc. (NYSE:AVP) which is equal to 16.6% of the company. That’s a total investment of $605 million in equity.

The stock is up 8.07% or $0.33 following the news, hitting $4.42 per share. About 759,109 shares traded hands. AVP has declined 42.15% since May 14, 2015 and is downtrending. It has underperformed the S&P500 by 39.53%.

From a total of 5 analysts covering Avon Products Inc. (NYSE:AVP) stock, 2 rate it a “Buy”, 1 a “Sell”, and 2 a “Hold”. This means that 40% of the ratings are positive. The highest target price is $10 while the lowest target price is $3.20. The mean of all analyst targets is $6.18 which is 39.82% above today’s ($4.42) stock price. Avon Products Inc. was the topic of 9 analyst reports since August 3, 2015 according to the firm StockzIntelligence Inc. Citigroup maintained shares on December 5 with a “Buy” rating. B. Riley & Co maintained AVP stock in a recent report from November 5 with a “Neutral” rating.

The institutional sentiment increased to 0.99 in Q2 2015. It’s up 0.27, from 0.72 in 2015Q2. The ratio improved, as 43 funds sold all their Avon Products, Inc. shares they owned while 100 reduced their positions. 30 funds bought stakes while 112 increased their total positions. Institutions now own 442.22 million shares which is 1.44% more than the previous share count of 435.94 million in 2015Q2.

Shah Capital Management holds 9.42% of its total portfolio in Avon Products, Inc., equating to 2.81 million shares. Royal Capital Management Llc owns 427,500 shares representing 3.73% of their total US portfolio. Moreover, Mcglinn Capital Management Inc has 1.26% of their total portfolio invested in the company, equating to 128,100 shares. The New York-based Pergamon Offshore Advisors L.P. has a total of 1.16% of their portfolio invested in the stock. North Run Capital Lp, a Massachusetts-based fund reported 3.54 million shares owned.

Avon Products, Inc. is a manufacturer and marketer of beauty and related products. The company has a market cap of $1.92 billion. The Company’s offers its products under two product categories: Beauty and Fashion & Home. It currently has negative earnings. Beauty consists of skincare , fragrance and color (cosmetics).