Analysts at Wells Fargo upped their rating on shares of Newell Brands Inc. (NASDAQ:NWL) from Market Perform to Outperform in their opinion released on April 17. SunTrust analysts have downgraded their rating of NWL stock from Buy to Hold in a separate flash note to investors on March 27. Analysts at RBC Capital Mkts downgraded the stock to a Sector Perform call from its previous Outperform stance, in a research note that dated back to January 26.
How do you judge Wall Street’s opinion of NWL stock? You could look at price, sure. But that doesn’t tell the whole story. Short sellers are betting against Newell Brands Inc. (NASDAQ:NWL) during the most recent two-week period. Looking at the sentiment indicator for the NWL stock we see that the short-interest ratio is at 6.332835 while the average analyst recommendations at 2.7 suggests buying these shares. Between December 14 and December 31, the total number of shorted shares amounted to 54.15 million shares. That was 11.85% more than the total of 48.42 million shares in the space of prior two weeks, which means more traders or funds betting that the stock will go down. Average daily volume for Newell Brands Inc. at the December 31st settlement plunged to 8,551,227, as compared to 10,458,433 at the December 14th report. That brought days to cover 36.79% up from the 4.629451 days to cover recorded at the prior short interest data release.
By watching the trading activity of corporate insiders, it will become easier to get a sense of Newell Brands Inc. (NASDAQ:NWL)’s prospects. The earliest insider trade took place on 11/26/2018. Cunningham James L Iii parted with a total of 22.33 thousand shares of company at average share price of $23.45. The total for the sales was set at $523.66 thousand. After this transaction, the SVP, Chief Accounting Officer account balance stood at 0 thousand shares. The stock lost -13.01 percent since that insider sale. On 11/12/2018, Icahn Brett, Director, purchased 100 thousand shares at a price per share of $20.03. This added 2 million shares to the insider’s fortune and the stock saw a 1.85 percent rally in value since the news became public. This transaction left 712.84 thousand shares in the Director account. On 08/13/2018, President and CEO Polk Michael B performed a purchase transaction worth $206.3 thousand. This purchase at $20.63 each has added 10 thousand shares into the insider’s portfolio position. Meanwhile, shares have recorded -1.11 percent decrease since the transaction was reported. The insider now is left with 1.14 million shares remaining in the account. Icahn Brett, who performs the Director job, bought 110 thousand shares for $2.31 million. The acquisition occurred on 08/09/2018 was priced at $21 per share. The share price plunged -2.86 percent since the reporting date. Icahn Brett now left with a stake of 611.1 thousand NWL stock worth $12.47 million after the insider buying.
Newell Brands Inc. (NWL) is expected to jump by 14.51 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $36-month high price target. This represents a whopping 76.47 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $22, which represents a return potential of 7.84 percent when compared to the closing price of the stock of $20.4 on Friday, January 11. The lowest price target for the stock is $20 — slightly more than -1.96 percent from NWL’s current share price.
The shares are currently floating around the first support level of $20.16. Below this, the next support is placed in the zone of $19.93. Till the time, the NWL stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 53.39 on daily chart, which may remain a cause for concern. If the price breaks below $19.93 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $20.67 mark may result into a pull-back move towards $20.94 level.
NWL shares dropped -0.15 points or -0.73 percent on Friday to $20.4 with a light trade volume of 4.151 million shares. After opening the session at $20.47, the shares went as high as $20.7 and as low as $20.195, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $9.59 billion and now has 470.23 million shares outstanding. Newell Brands Inc. (NWL) stock has lost -12.86 percent of market value in 21 trading days.
NWL stock has a trailing 3-year beta of 1.12, offering the possibility of a higher rate of return, but also posing more risk. The portion of a company’s profit allocated to each outstanding share of common stock was -$14.17 a share in the trailing twelve months. The stock’s value has surged 9.74 percent year to date (YTD) against a decline of -34.51 percent in 12 month’s time. The company’s shares still trade -37.38 percent away from its 1-year high of $32.58 and 34.97 percent up from 52-week low of $15.11. The average consensus rating on the company is 2.7, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a sell.
Shares of Newell Brands Inc. (NWL) are trading at a P/E ratio of 0 times earnings reported for the past 12 months. The industry NWL operates in has an average P/E of 25.67. Its P/E ratio went as low as 11.12X and as high as 46.14 over the 5-year span. Further, it is sporting a 0.96 on the Price-to-Sales ratio. Compare this with the industry average P/S of 27.9. 34.1 percent is the gross profit margin for Newell Brands Inc. and operating margin sits at -78.5 percent. Along with this, the net profit margin is -70.5 percent.
Analysts are forecasting revenue to suffer decline of -34.9 percent to $2.44B in the next fiscal quarter, while earnings are seen soaring by nearly -1.47 percent to $0.67 per share. History has shown that shares in Newell Brands Inc. have gone up on 21 different earnings reaction days and are predicted to add 0.05 percent when the company reports upcoming earnings. In last reported earnings results, it earned $0.81 per share, better than the $0.64, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $2.28B, worse than the $2.33B analysts expected. Earnings are estimated to increase by 122.6 percent this year, -14.07 percent next year and continue to increase by 8.07 percent annually for the next 5 years.