Reynolds Consumer Products (NASDAQ:REYN) Shares Gap Down After Earnings Miss

Shares of Reynolds Consumer Products Inc. (NASDAQ:REYN) gapped down before the market opened on Wednesday following a dissappointing earnings announcement. The stock had previously closed at $29.52, but opened at $28.00. Reynolds Consumer Products shares last traded at $27.67, with a volume of 36,598 shares changing hands.

The company reported $0.41 earnings per share for the quarter, missing analysts’ consensus estimates of $0.42 by ($0.01). The company had revenue of $910.00 million for the quarter, compared to the consensus estimate of $902.88 million. Reynolds Consumer Products had a net margin of 10.03% and a return on equity of 18.41%. The firm’s revenue was down 2.7% on a year-over-year basis. During the same period in the prior year, the company earned $0.37 earnings per share.

Reynolds Consumer Products Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Friday, November 29th. Shareholders of record on Friday, November 15th will be paid a $0.23 dividend. The ex-dividend date of this dividend is Friday, November 15th. This represents a $0.92 annualized dividend and a dividend yield of 3.41%. Reynolds Consumer Products’s payout ratio is presently 52.57%.

Wall Street Analyst Weigh In

Several equities research analysts recently weighed in on the company. JPMorgan Chase & Co. lifted their price objective on Reynolds Consumer Products from $29.00 to $33.00 and gave the stock a “neutral” rating in a report on Thursday, August 8th. Barclays cut their price target on shares of Reynolds Consumer Products from $29.00 to $28.00 and set an “equal weight” rating for the company in a research note on Thursday. Jefferies Financial Group initiated coverage on shares of Reynolds Consumer Products in a research report on Thursday, August 29th. They set a “buy” rating and a $38.00 price objective on the stock. Royal Bank of Canada upped their target price on shares of Reynolds Consumer Products from $31.00 to $32.00 and gave the stock a “sector perform” rating in a research report on Thursday, August 8th. Finally, Canaccord Genuity Group upped their target price on Reynolds Consumer Products from $30.00 to $32.00 and gave the stock a “hold” rating in a research note on Thursday, August 8th. Five investment analysts have rated the stock with a hold rating and one has assigned a buy rating to the company. Based on data from MarketBeat.com, the company has an average rating of “Hold” and a consensus price target of $32.17.

Institutional Investors Weigh In On Reynolds Consumer Products

Several institutional investors have recently added to or reduced their stakes in the company. Pacer Advisors Inc. raised its position in Reynolds Consumer Products by 48.6% during the 2nd quarter. Pacer Advisors Inc. now owns 3,890,109 shares of the company’s stock valued at $108,845,000 after purchasing an additional 1,272,353 shares during the last quarter. AQR Capital Management LLC increased its stake in shares of Reynolds Consumer Products by 122.7% during the second quarter. AQR Capital Management LLC now owns 1,557,835 shares of the company’s stock valued at $43,588,000 after buying an additional 858,419 shares during the period. Dimensional Fund Advisors LP lifted its stake in Reynolds Consumer Products by 17.2% in the second quarter. Dimensional Fund Advisors LP now owns 1,781,815 shares of the company’s stock worth $49,859,000 after acquiring an additional 261,513 shares during the period. Acadian Asset Management LLC boosted its holdings in Reynolds Consumer Products by 994.7% in the first quarter. Acadian Asset Management LLC now owns 212,694 shares of the company’s stock valued at $6,068,000 after acquiring an additional 193,265 shares in the last quarter. Finally, Beacon Harbor Wealth Advisors Inc. purchased a new stake in shares of Reynolds Consumer Products in the 3rd quarter worth about $5,731,000. Hedge funds and other institutional investors own 26.81% of the company’s stock.

Reynolds Consumer Products Price Performance

The business’s 50 day moving average price is $30.71 and its two-hundred day moving average price is $29.21. The company has a current ratio of 2.13, a quick ratio of 1.01 and a debt-to-equity ratio of 0.87. The stock has a market cap of $5.66 billion, a P/E ratio of 15.40 and a beta of 0.48.

Reynolds Consumer Products Company Profile

Reynolds Consumer Products Inc produces and sells products in cooking, waste and storage, and tableware product categories in the United States and internationally. It operates through four segments: Reynolds Cooking & Baking, Hefty Waste & Storage, Hefty Tableware, and Presto Products. The Reynolds Cooking & Baking segment produces aluminum foil, disposable aluminum pans, parchment paper, freezer paper, wax paper, butcher paper, plastic wrap, baking cups, oven bags, and slow cooker liners under the Reynolds Wrap, Reynolds KITCHENS, and EZ Foil brands in the United States, as well as under the ALCAN brand in Canada and under the Diamond brand internationally.