Mitchell R. Butier, the Executive Chairman of Avery Dennison Corp (NYSE:AVY), has sold a total of $1,236,746 worth of company stock, according to a recent SEC filing. The transactions, which took place on August 6 and 7, 2024, involved shares sold at prices ranging from $202.30 to $208.175.
Butier's sales were executed in multiple trades over the two days. Specific details of the transactions, such as the number of shares sold at each price within the range, were not disclosed in the filing; however, the company has stated that full information regarding the shares and prices at which the transactions were effected will be provided upon request.
In addition to the sales, the filing also reported that Butier acquired a total of 6,000 shares of Avery Dennison stock through the exercise of options, with the transactions valued at $443,736 at a price of $73.956 per share. These acquisitions were conducted under a Rule 10b5-1 trading plan, a pre-arranged trading plan that allows insiders to sell shares at predetermined times to avoid accusations of trading on nonpublic information.
Avery Dennison Corp, headquartered in Mentor, Ohio, is known for its production of a variety of paper and converted paper products. The company's stock is publicly traded on the New York Stock Exchange under the ticker symbol AVY.
The recent transactions by Butier reflect a common practice among executives to diversify their investment portfolios. Investors often monitor insider buying and selling as a signal of executive confidence in the company's prospects, although such transactions do not always indicate a change in company performance or strategy.
The SEC filing did not indicate any immediate changes in Butier's role at the company or in Avery Dennison's operations.
In other recent news, Avery Dennison Corporation (NYSE:AVY) has been the focus of several analyst revisions following its robust second-quarter performance. The company exceeded earnings expectations with an earnings per share (EPS) of $2.42, prompting an upward adjustment of its full-year earnings guidance to between $9.30 and $9.50 per share, indicating an approximately 20% growth over the previous year.
UBS downgraded Avery Dennison from "Buy" to "Neutral," citing concerns over the pace of growth in the company's radio-frequency identification (RFID) segment. The firm also reduced the price target for Avery Dennison shares from $262.00 to $235.00. Despite the downgrade, UBS still expects Avery Dennison to experience above-average growth, with RFID anticipated to make up about 13% of the company's sales by 2025.
BMO Capital Markets adjusted its outlook on Avery Dennison, reducing its price target on the stock to $254 from the previous $256, while maintaining an Outperform rating. Truist Securities also adjusted its outlook, increasing the price target to $258 from $253, while reaffirming a Buy rating on the stock.
Avery Dennison anticipates a mid-single-digit percentage decline in Q3 EPS due to historical seasonal volume drops. Despite this, the company expects record revenue in Q4 and targets over 20% volume growth in intelligent labels for the year. More insight into Avery Dennison's long-term strategies will be provided during the company's Investor Day in September, marking ongoing efforts to maintain strong growth and adapt to market conditions.
InvestingPro Insights
Following the recent insider transactions by Executive Chairman Mitchell R. Butier, investors may be keen to understand the financial health and market performance of Avery Dennison Corp (NYSE:AVY). According to InvestingPro data, Avery Dennison currently holds a market capitalization of $16.73 billion, with a Price to Earnings (P/E) ratio of 26.54. This valuation metric is adjusted to a slightly lower P/E ratio of 24.48 for the last twelve months as of Q2 2024.
The company's commitment to shareholders is evident through its dividend history. An InvestingPro Tip highlights that Avery Dennison has raised its dividend for 13 consecutive years, and has maintained dividend payments for 54 consecutive years, showcasing its stability and reliability in providing shareholder returns. However, it's important to note that the company is trading at a high Price to Book multiple of 7.31, which investors may want to consider when evaluating the stock's value.
InvestingPro data also reveals a modest revenue growth of 1.14% for the last twelve months as of Q2 2024. This figure complements the insight that five analysts have revised their earnings downwards for the upcoming period, suggesting that while the company has a steady track record, near-term growth prospects may be more subdued. For those interested in exploring further, InvestingPro offers additional tips and insights on Avery Dennison, which are available on their platform.
For investors and analysts seeking a deeper dive into Avery Dennison's financials and stock performance, more InvestingPro Tips can be accessed, providing a comprehensive analysis that can guide investment decisions.
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