Silgan (NASDAQ:SLGN) Upgraded to Buy at Zacks Investment Research

Silgan (NASDAQ:SLGNGet Rating) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a report issued on Wednesday, Zacks.com reports. The firm presently has a $46.00 price target on the industrial products company’s stock. Zacks Investment Research‘s price target points to a potential upside of 5.14% from the stock’s current price.

According to Zacks, “Silgan’s revenues and adjusted earnings per share improved year over year in the first quarter of 2022 and surpassed the Zacks Consensus Estimate. Silgan expects adjusted earnings per share between $3.90 and $4.05 for 2022. The mid-point of the range indicates year-over-year growth of 17%. Surging input costs, ongoing supply-chain headwinds and labor shortages are likely to hurt margins. However, strong volumes for the beauty, fragrance, food and beverage markets as well as recent acquisitions will drive the Dispensing and Specialty Closures segment's results. Pet food markets will aid the Metal Container segment's results. Silgan’s manufacturing improvement efforts, capacity expansions and acquisitions will contribute to growth. However, high debt levels and the consequent higher interest expenses remain concerning.”

Several other research analysts have also recently weighed in on SLGN. Citigroup boosted their price objective on shares of Silgan from $45.00 to $50.00 in a research report on Friday, April 8th. StockNews.com cut shares of Silgan from a “buy” rating to a “hold” rating in a research report on Friday, April 29th. One investment analyst has rated the stock with a sell rating, four have issued a hold rating and six have assigned a buy rating to the company. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and an average target price of $49.50.

NASDAQ SLGN traded down $0.06 during trading on Wednesday, reaching $43.75. 12,665 shares of the company traded hands, compared to its average volume of 598,635. The company has a market cap of $4.85 billion, a price-to-earnings ratio of 13.14, a P/E/G ratio of 2.26 and a beta of 0.76. The company has a debt-to-equity ratio of 2.10, a quick ratio of 0.74 and a current ratio of 1.33. Silgan has a 1-year low of $37.10 and a 1-year high of $46.98. The stock’s 50 day moving average price is $44.83 and its two-hundred day moving average price is $43.44.

Silgan (NASDAQ:SLGNGet Rating) last posted its quarterly earnings data on Wednesday, April 27th. The industrial products company reported $0.78 earnings per share for the quarter, topping the consensus estimate of $0.77 by $0.01. Silgan had a net margin of 6.30% and a return on equity of 25.33%. The firm had revenue of $1.44 billion during the quarter, compared to analysts’ expectations of $1.40 billion. During the same quarter in the previous year, the company posted $0.75 EPS. Silgan’s revenue was up 16.5% on a year-over-year basis. Equities research analysts expect that Silgan will post 3.95 EPS for the current fiscal year.

A number of institutional investors have recently added to or reduced their stakes in the business. Verity Asset Management Inc. increased its holdings in shares of Silgan by 9.9% during the first quarter. Verity Asset Management Inc. now owns 9,806 shares of the industrial products company’s stock worth $454,000 after purchasing an additional 885 shares during the period. Point72 Hong Kong Ltd increased its holdings in shares of Silgan by 90,740.0% during the first quarter. Point72 Hong Kong Ltd now owns 4,542 shares of the industrial products company’s stock worth $210,000 after purchasing an additional 4,537 shares during the period. Quantbot Technologies LP bought a new position in shares of Silgan during the first quarter worth approximately $893,000. Eaton Vance Management increased its holdings in shares of Silgan by 1,492.1% during the first quarter. Eaton Vance Management now owns 45,661 shares of the industrial products company’s stock worth $2,110,000 after purchasing an additional 42,793 shares during the period. Finally, Guggenheim Capital LLC increased its holdings in shares of Silgan by 36.9% during the first quarter. Guggenheim Capital LLC now owns 20,449 shares of the industrial products company’s stock worth $945,000 after purchasing an additional 5,517 shares during the period. 67.77% of the stock is currently owned by hedge funds and other institutional investors.

About Silgan (Get Rating)

Silgan Holdings Inc, together with its subsidiaries, manufactures and sells rigid packaging for consumer goods products in North America, Europe, and internationally. It operates through three segments: Dispensing and Specialty Closures, Metal Containers, and Custom Containers. The Metal Containers segment manufactures and sells steel and aluminum containers for food products, such as pet food, vegetables, soups, proteins, tomato based products, adult nutritional drinks, fruits, and other miscellaneous food products, as well as general line metal containers primarily for chemicals.

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