Amid Chinese Market Woes, Avon Products, Inc. (AVP) Will Not be Leaving Anytime Soon – Shares Still Plunge


The Chinese martket woes have been affecting a lot of stocks this morning, one of which is Avon Products, Inc. (NYSE:AVP). China makes up a fairly large portion of sales for the manufacturer of beauty products, so when the market there does poorly so does the company as a whole.

Last quarter, Avon Products, Inc. (NYSE:AVP) saw their sales drop by 22 percent in the Asia Pacific region, and this quarter may not get any better with the Chinese market fluttering. However, rumors that they will be leaving the market altogether have scared some investors off. With this said though, the company has now stated that they have no plans to leave China.

While you would think this would be enough to help keep longs in the market, shareholders are selling today, more than likely due to the fact that China’s econmoy may be in a significant downturn.

The stock is down 13.58% or $0.46 following the news, hitting $2.96 per share. Approximately 2.44 million shares traded hands. AVP shares have declined 47.15% since June 3, 2015 and are currently downtrending. It has underperformed the S&P500 by 41.29%.

From a total of 5 analysts covering Avon Products Inc. (NYSE:AVP) stock, 3 rate it a “Buy”, 1 a “Sell”, and 1 a “Hold”. This means that 60% of the ratings are positive. The highest target price is $10 while the lowest target price is $2. The mean of all analyst targets is $5.30 which is 79.05% above today’s ($2.96) stock price. Avon Products Inc. was the topic of 11 analyst reports since August 3, 2015 according to the firm StockzIntelligence Inc. Sterne Agee CRT upgraded shares on December 18 to 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 increased, 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 $1.29 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).