Avery Dennison Corp (NYSE:AVY) Executive Chairman Mitchell R. Butier has sold a total of $4,282,509 worth of the company's stock, according to recent SEC filings. The transactions, which occurred on July 29 and 30, involved multiple trades with prices ranging from $212.76 to $216.091.
Butier, who also serves as a director, executed the sales automatically under a Rule 10b5-1 trading plan, which was adopted on March 14, 2024. This plan allows corporate insiders to set up a predetermined schedule to sell stocks at a time when they are not in possession of material non-public information, providing an affirmative defense against accusations of insider trading.
The sales were conducted in several trades at varying prices, with the SEC filing detailing the weighted average prices for each batch of shares sold. The largest single sale was for 2,987 shares at an average price of $214.3556, while the smallest was for 100 shares at $212.76.
In addition to the sales, Butier also acquired 20,000 shares of Avery Dennison stock through the exercise of options at a price of $73.956 per share, totaling $1,479,120. These transactions were also executed in accordance with the pre-arranged trading plan.
Following these transactions, Butier's direct holdings in Avery Dennison stock have changed, reflecting the new balance of shares owned after each sale and acquisition. It's important for investors to note that the reported transactions do not necessarily indicate a change in the executive's view of the company's prospects but are executed as part of a structured trading plan.
Avery Dennison is a global
In other recent news, Avery Dennison Corporation (NYSE:AVY) has reported strong earnings, surpassing expectations with an earnings per share (EPS) of $2.42. This robust performance has led the company to raise its full-year earnings guidance to between $9.30 and $9.50 per share, indicating an approximately 20% growth over the previous year. However, UBS has adjusted its stance on Avery Dennison, downgrading the stock from a "Buy" to a "Neutral" rating due to concerns over the pace of growth in the company's radio-frequency identification (RFID) segment.
BMO Capital Markets and Truist Securities have also adjusted their outlooks on Avery Dennison, with BMO reducing its price target on the stock to $254 and Truist increasing its price target to $258. Despite a projected mid-single-digit percentage decline in Q3 EPS due to historical seasonal volume drops, Avery Dennison expects record revenue in Q4 and targets over 20% volume growth in intelligent labels for the year. These recent developments underline the company's ongoing efforts to maintain strong growth and adapt to market conditions.
InvestingPro Insights
Amidst the news of Executive Chairman Mitchell R. Butier's stock transactions, Avery Dennison Corp (NYSE:AVY) presents a mixed financial landscape according to recent InvestingPro data. The company's market capitalization stands at a robust $17.47 billion, reflecting its position in the industry. However, with a P/E ratio of 27.88, Avery Dennison trades at a premium relative to near-term earnings growth, which might raise concerns for value-focused investors. This valuation is slightly tempered when looking at the adjusted P/E ratio for the last twelve months as of Q2 2024, which is at 24.9.
Despite a modest revenue growth of 1.14% in the last twelve months as of Q2 2024, the company has demonstrated a stronger quarterly revenue growth of 6.93% in Q2 2024. This indicates a potential uptick in the company's financial performance. Additionally, Avery Dennison has maintained a consistent dividend for 54 years and has increased it for the past 13 years, with the most recent dividend yield reported at 1.63%. This consistency is a positive signal for income investors looking for stable dividend-paying stocks.
Among the InvestingPro Tips, two notable points stand out. First, Avery Dennison is trading near its 52-week high, with prices at 92.95% of this peak, which may suggest a strong market confidence in the stock. Second, the company is noted for low price volatility, which might appeal to conservative investors seeking stability in their portfolio.
For investors seeking a deeper analysis, additional InvestingPro Tips are available, including insights on earnings revisions and liquidity concerns. There are 11 more tips listed on InvestingPro for Avery Dennison, offering a broader perspective on the company's financial health and stock performance.
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