Investment Analysts’ Recent Ratings Changes for Greif (GEF)

Several brokerages have updated their recommendations and price targets on shares of Greif (NYSE: GEF) in the last few weeks:

  • 5/30/2019 – Greif was upgraded by analysts at Zacks Investment Research from a “sell” rating to a “hold” rating. They now have a $37.00 price target on the stock. According to Zacks, “Greif updated adjusted earnings per share guidance for fiscal 2019 at $3.60-$4.00. The mid-point of the guidance reflects year-over-year growth of 8%. The outlook has been updated to include the impact of the acquired Caraustar business. Greif will benefit from its focus on operational execution, capital discipline, and a strong and diverse product portfolio. In 2019, Greif’s restructuring activities will focus on rationalizing operations and close underperforming assets in the Rigid Industrial Packaging & Services and Flexible Products & Services segments. The company's growth will be aided by capital-expansion projects and acquisitions. However, high debt following the acquisition remains a concern. The volume in Western and Central Europe also remained muted due to trade uncertainty, which is likely to continue in fiscal 2019.”
  • 5/27/2019 – Greif was downgraded by analysts at Zacks Investment Research from a “hold” rating to a “sell” rating. They now have a $38.00 price target on the stock. According to Zacks, “Greif updated adjusted earnings per share guidance for fiscal 2019 at $3.60-$4.00. The mid-point of the guidance reflects year-over-year growth of 8%. The outlook has been updated to include the impact of the acquired Caraustar business. However, high debt following the acquisition remains a concern. Further, in the Rigid Industrial Packaging & Services, volume weakness was mostly pronounced in Latin America in the first quarter fiscal 2019 owing to recessionary effect in Argentina and isolated operational challenges in the company’s Brazilian operations. In the Asia Pacific region, volumes were impacted by China’s slowing economy and mounting trade tensions. The volume environment in Western and Central Europe also remained muted on account of trade uncertainty, which is likely to continue in fiscal 2019 as well.”
  • 5/23/2019 – Greif was upgraded by analysts at Zacks Investment Research from a “sell” rating to a “hold” rating. According to Zacks, “Greif updated adjusted earnings per share guidance for fiscal 2019 at $3.60-$4.00. The mid-point of the guidance reflects year-over-year growth of 8%. The outlook has been updated to include the impact of the acquired Caraustar business. However, high debt following the acquisition remains a concern. Further, lower volume expectations for the Rigid Industrial Packaging & Services will impact results in fiscal 2019.”
  • 5/17/2019 – Greif was downgraded by analysts at Zacks Investment Research from a “hold” rating to a “sell” rating. According to Zacks, “Greif updated adjusted earnings per share guidance for fiscal 2019 in the range of $3.60-$4.00. The mid-point of the guidance suggests growth of 8%. The company expects the Paper Packaging & Services business segment to exhibit growth in 2019, but at a lower trajectory on a year-over-year comparison. Further, lower volumes and volatile currency exchange rates will impact results of the Rigid Industrial Packaging & Services segment in the fiscal. Price decline will also negatively impact the segment’s margins before improving in the back half. Higher debt following the Caraustar acquisition also remains a concern. Greif’s shares have underperformed the industry over the past year. Its estimates for the current quarter have undergone negative revisions lately. The company also has a negative record of earnings surprise over the last few quarters.”
  • 5/7/2019 – Greif was downgraded by analysts at Zacks Investment Research from a “hold” rating to a “sell” rating. According to Zacks, “Greif updated adjusted earnings per share guidance for fiscal 2019 at $3.60-$4.00. The mid-point of the guidance reflects year-over-year growth of 8%. The outlook has been updated to include the impact of the acquired Caraustar business. However, high debt following the acquisition remains a concern. Further, lower volume expectations for the Rigid Industrial Packaging & Services will impact results in fiscal 2019.”

Shares of Greif stock traded up $0.70 on Friday, hitting $34.70. The company had a trading volume of 4,996 shares, compared to its average volume of 143,528. The company has a market cap of $1.87 billion, a PE ratio of 9.83, a price-to-earnings-growth ratio of 1.22 and a beta of 1.50. Greif, Inc. has a 1 year low of $31.80 and a 1 year high of $62.75. The company has a quick ratio of 1.29, a current ratio of 1.83 and a debt-to-equity ratio of 0.91.

Greif (NYSE:GEF) last issued its quarterly earnings data on Wednesday, June 5th. The industrial products company reported $0.81 EPS for the quarter, topping the consensus estimate of $0.79 by $0.02. The firm had revenue of $1.21 billion during the quarter, compared to the consensus estimate of $1.24 billion. Greif had a return on equity of 19.01% and a net margin of 3.68%. The company’s quarterly revenue was up 25.3% compared to the same quarter last year. During the same period in the prior year, the business posted $0.76 earnings per share. As a group, research analysts anticipate that Greif, Inc. will post 3.67 EPS for the current year.

The business also recently disclosed a quarterly dividend, which will be paid on Monday, July 1st. Stockholders of record on Tuesday, June 18th will be paid a $0.44 dividend. This represents a $1.76 annualized dividend and a dividend yield of 5.07%. The ex-dividend date is Monday, June 17th. Greif’s dividend payout ratio (DPR) is presently 49.86%.

Several institutional investors have recently modified their holdings of the company. Deprince Race & Zollo Inc. grew its position in shares of Greif by 32.4% during the 4th quarter. Deprince Race & Zollo Inc. now owns 433,811 shares of the industrial products company’s stock valued at $16,099,000 after acquiring an additional 106,121 shares during the period. Wedge Capital Management L L P NC grew its position in shares of Greif by 13.2% during the 4th quarter. Wedge Capital Management L L P NC now owns 6,378 shares of the industrial products company’s stock valued at $237,000 after acquiring an additional 746 shares during the period. Dupont Capital Management Corp bought a new stake in shares of Greif during the 4th quarter valued at $80,000. Investors Research Corp grew its position in shares of Greif by 1.8% during the 4th quarter. Investors Research Corp now owns 16,950 shares of the industrial products company’s stock valued at $629,000 after acquiring an additional 300 shares during the period. Finally, Chicago Equity Partners LLC bought a new stake in shares of Greif during the 4th quarter valued at $626,000. 48.06% of the stock is owned by hedge funds and other institutional investors.

Greif, Inc produces and sells industrial packaging products and services worldwide. It operates through four segments: Rigid Industrial Packaging & Services; Paper Packaging & Services; Flexible Products & Services; and Land Management. The Rigid Industrial Packaging & Services segment offers rigid industrial packaging products, including steel, fiber, and plastic drums; rigid intermediate bulk containers; closure systems for industrial packaging products; transit protection products; water bottles, and remanufactured and reconditioned industrial containers; and services, such as container life cycle management, filling, logistics, warehousing, and other packaging services.

Further Reading: The mechanics of the bid-ask spread in trading

Receive News & Ratings for Greif Inc Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Greif Inc and related companies with MarketBeat.com's FREE daily email newsletter.