Smurfit Westrock PLC (NYSE:SW) has received a consensus target price of $53.30 from analysts covering the company, indicating a general outlook of “Moderate Buy.” According to Marketbeat, this assessment comes from thirteen analysts, with ten recommending a buy, one advising a strong buy, one suggesting a hold, and one labeling the stock as a sell.
Analyst reports have provided varied insights into Smurfit Westrock’s stock performance. For instance, the Royal Bank of Canada set a target price of $51.00 on December 18, 2023, while Morgan Stanley reiterated an “overweight” rating with a $52.00 price target on November 3, 2023. Additionally, Weiss Ratings reaffirmed a “hold (c)” rating, and Seaport Res Ptn upgraded the stock from a “hold” to a “strong buy” on October 6, 2023. In contrast, Wells Fargo & Company revised its target down from $52.00 to $50.00 on October 30, 2023, while maintaining an “overweight” rating.
Quarterly Earnings Performance
On October 29, 2023, Smurfit Westrock announced its quarterly earnings, reporting earnings per share (EPS) of $0.58, falling short of analysts’ expectations of $0.68. The company posted revenues of $8 billion for the quarter, surpassing the consensus estimate of $7.89 billion. Despite the EPS miss, Smurfit Westrock’s revenue represented a 4.3% increase compared to the same quarter in the previous year, reflecting a net margin of 2.40% and a return on equity of 6.21%. Analysts project that the company will achieve an EPS of 3.25 for the current year.
Dividend Announcement and Institutional Activity
In a recent development, Smurfit Westrock declared a quarterly dividend of $0.4308 per share, which was paid on November 14, 2023, to investors of record. This dividend represents an annualized payout of $1.72 and yields 4.4%. The company’s dividend payout ratio (DPR) currently stands at 120.28%.
Institutional investors have been active in adjusting their stakes in Smurfit Westrock. FNY Investment Advisers LLC acquired a new stake valued at approximately $85,000 during the third quarter. Swiss Life Asset Management Ltd increased its holdings by 16.2%, now owning 85,111 shares worth $3,623,000. Similarly, Groupama Asset Management raised its stake by 5.9%, totaling 644,001 shares valued at $27,415,000. Additionally, CIBC Bancorp USA Inc. and Danske Bank A S also made new investments in the company during the third quarter. Currently, institutional investors hold approximately 83.38% of Smurfit Westrock’s stock.
Smurfit Westrock PLC, headquartered in Ireland, specializes in manufacturing, distributing, and selling containerboard, corrugated containers, and other paper-based packaging products internationally. The company continues to adapt and grow within the packaging market, aiming to meet evolving consumer demands.
