Zacks Investment Research downgraded shares of Avon Products (NYSE:AVP) from a hold rating to a sell rating in a research note issued to investors on Monday morning.
According to Zacks, “Avon underperformed the industry in a year’s time, owing to its dismal surprise history. Though the company delivered in-line earnings in first-quarter 2018, it has lagged estimates in eight of the last 11 quarters. Moreover, sales missed estimates in five of the last seven quarters. The company has been witnessing weak Active Representatives growth for the last few quarters, which is hurting sales. Evidently, Active Representatives fell across all segments in the first quarter. However, management remains committed toward boosting Representatives growth, which might take some time. Meanwhile, it remains on track with the Transformation Plan that targets achieving cost savings of $65 million in 2018, of which $15 million was reached in the first quarter. Also, the company intends to offer deeper insights and analytics into Representative’s behavior and requirements to boost experience, which should drive its top line and profitability.”
A number of other equities analysts have also commented on the stock. Citigroup cut their price objective on shares of Avon Products from $3.50 to $3.00 and set a buy rating for the company in a research report on Friday. ValuEngine lowered shares of Avon Products from a buy rating to a hold rating in a research report on Wednesday, May 2nd. Deutsche Bank raised their price objective on shares of Avon Products from $2.00 to $3.00 and gave the company a hold rating in a research report on Friday, February 16th. Royal Bank of Canada restated a sector perform rating and issued a $2.00 price objective on shares of Avon Products in a research report on Friday, February 16th. Finally, Jefferies Group set a $2.00 price objective on shares of Avon Products and gave the company a sell rating in a research report on Thursday, February 15th. Four investment analysts have rated the stock with a sell rating, four have given a hold rating and two have assigned a buy rating to the stock. The stock has a consensus rating of Hold and an average target price of $2.53.
AVP opened at $2.19 on Monday. The stock has a market capitalization of $989.36 million, a PE ratio of 22.40, a price-to-earnings-growth ratio of 1.08 and a beta of 1.42. The company has a debt-to-equity ratio of -2.18, a current ratio of 1.23 and a quick ratio of 0.83. Avon Products has a twelve month low of $1.85 and a twelve month high of $3.89.
Avon Products (NYSE:AVP) last released its quarterly earnings data on Thursday, May 3rd. The company reported ($0.02) EPS for the quarter, meeting analysts’ consensus estimates of ($0.02). Avon Products had a net margin of 0.66% and a negative return on equity of 9.55%. The company had revenue of $1.31 billion during the quarter, compared to analyst estimates of $1.36 billion. During the same period last year, the business earned ($0.07) earnings per share. Avon Products’s revenue was up .9% compared to the same quarter last year. equities research analysts anticipate that Avon Products will post 0.17 EPS for the current fiscal year.
Institutional investors have recently made changes to their positions in the business. Mitsubishi UFJ Kokusai Asset Management Co. Ltd. lifted its position in Avon Products by 169.0% during the fourth quarter. Mitsubishi UFJ Kokusai Asset Management Co. Ltd. now owns 51,362 shares of the company’s stock valued at $114,000 after purchasing an additional 32,268 shares during the last quarter. CIBC Asset Management Inc lifted its position in Avon Products by 256.7% during the first quarter. CIBC Asset Management Inc now owns 54,768 shares of the company’s stock valued at $156,000 after purchasing an additional 39,412 shares during the last quarter. Xact Kapitalforvaltning AB bought a new stake in Avon Products during the fourth quarter valued at approximately $136,000. Caption Management LLC bought a new stake in Avon Products during the fourth quarter valued at approximately $161,000. Finally, Stone Ridge Asset Management LLC bought a new stake in Avon Products during the fourth quarter valued at approximately $172,000. Institutional investors and hedge funds own 83.14% of the company’s stock.
About Avon Products
Avon Products, Inc manufactures and markets beauty and related products in Europe, the Middle East, Africa, south Latin America, north Latin America, and the Asia Pacific. The company offers beauty products, including skincare, fragrance, and color cosmetics; and fashion and home products, such as fashion jewelry, watches, apparel, footwear, accessories, gift and decorative products, housewares, entertainment and leisure products, children's products, and nutritional products.
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