Zacks Investment Research Lowers Crown (CCK) to Sell

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Crown (NYSE:CCK) was downgraded by Zacks Investment Research from a “strong-buy” rating to a “sell” rating in a research report issued to clients and investors on Wednesday.

According to Zacks, “Crown Holdings expects its 2018 adjusted earnings per share will be $5.35-$5.55, reflecting 35% year-over-year growth at the mid-point. The company also projected adjusted free cash flow of approximately $625 million and capital spending of around $460 million for the full year. Further, it guided second-quarter 2018 earnings per share of $1.55-$1.65. Crown Holdings’ recent buyout of Signode will add a portfolio of premier transit and protective packaging franchises to its metal packaging business. However, increase in debt levels due to the Signode acquisition remains a concern. Also the imposition of tariff on steel and aluminium will lead to elevated raw material costs. Its shares have underpeformed the industry over the past year. “

Other equities research analysts also recently issued reports about the stock. Barclays raised their price target on shares of Crown from $70.00 to $72.00 and gave the company an “overweight” rating in a research note on Monday, March 26th. JPMorgan Chase & Co. raised their price target on shares of Crown from $68.00 to $69.00 and gave the company a “buy” rating in a research note on Wednesday, April 11th. Citigroup reduced their price target on shares of Crown from $69.00 to $62.00 and set a “buy” rating on the stock in a research note on Thursday, April 5th. Credit Suisse Group reduced their price target on shares of Crown from $64.00 to $58.00 and set a “neutral” rating on the stock in a research note on Wednesday, April 18th. Finally, ValuEngine downgraded shares of Crown from a “sell” rating to a “strong sell” rating in a research note on Thursday, May 17th. Three analysts have rated the stock with a sell rating, five have issued a hold rating and seven have assigned a buy rating to the company’s stock. Crown has an average rating of “Hold” and a consensus target price of $63.67.

Crown traded up $0.82, reaching $45.66, during mid-day trading on Wednesday, MarketBeat.com reports. 81,690 shares of the company’s stock were exchanged, compared to its average volume of 1,609,573. Crown has a one year low of $42.63 and a one year high of $62.27. The firm has a market cap of $6.15 billion, a price-to-earnings ratio of 11.35, a P/E/G ratio of 1.20 and a beta of 1.40. The company has a debt-to-equity ratio of 6.99, a quick ratio of 1.34 and a current ratio of 1.84.

Crown (NYSE:CCK) last released its quarterly earnings results on Wednesday, April 18th. The industrial products company reported $0.94 EPS for the quarter, topping analysts’ consensus estimates of $0.80 by $0.14. Crown had a net margin of 3.40% and a return on equity of 56.15%. The business had revenue of $2.20 billion for the quarter, compared to analyst estimates of $2.06 billion. During the same period last year, the firm earned $0.72 earnings per share. Crown’s revenue for the quarter was up 15.6% compared to the same quarter last year. sell-side analysts anticipate that Crown will post 5.46 EPS for the current year.

In other Crown news, CEO Timothy J. Donahue bought 10,000 shares of the business’s stock in a transaction that occurred on Thursday, May 31st. The shares were acquired at an average cost of $43.25 per share, for a total transaction of $432,500.00. Following the transaction, the chief executive officer now directly owns 491,378 shares in the company, valued at $21,252,098.50. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. 1.80% of the stock is owned by company insiders.

A number of large investors have recently bought and sold shares of the stock. BlackRock Inc. boosted its position in Crown by 15.3% during the 1st quarter. BlackRock Inc. now owns 7,945,196 shares of the industrial products company’s stock worth $403,218,000 after buying an additional 1,054,407 shares during the period. JPMorgan Chase & Co. boosted its position in Crown by 66.5% during the 1st quarter. JPMorgan Chase & Co. now owns 4,773,755 shares of the industrial products company’s stock worth $242,269,000 after buying an additional 1,905,831 shares during the period. CI Global Investments Inc. boosted its position in Crown by 466.7% during the 1st quarter. CI Global Investments Inc. now owns 3,268,774 shares of the industrial products company’s stock worth $165,890,000 after buying an additional 2,691,929 shares during the period. Cooke & Bieler LP boosted its position in Crown by 36.8% during the 1st quarter. Cooke & Bieler LP now owns 2,241,374 shares of the industrial products company’s stock worth $113,749,000 after buying an additional 603,518 shares during the period. Finally, Brandywine Global Investment Management LLC boosted its position in Crown by 1.5% during the 4th quarter. Brandywine Global Investment Management LLC now owns 1,582,891 shares of the industrial products company’s stock worth $89,038,000 after buying an additional 22,784 shares during the period. Institutional investors and hedge funds own 89.32% of the company’s stock.

Crown Company Profile

Crown Holdings, Inc designs, manufactures, and sells packaging products for consumer goods in the Americas, Europe, and the Asia Pacific. Its primary products include steel and aluminum cans for food, beverage, household, and other consumer products; glass bottles for beverage products; and metal vacuum closures, steel crowns and caps.

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