Ball Corporation (BLL) A Stock to Buy on Insider Confidence?

The Ball Corporation (NYSE:BLL) bulls won the day, but the reality is that the 0.64 points or 1.2 percent advance gave very little definitive technical indication of where the stock could be headed next. On 08 February, the shares traded at $53.9 with a light trade volume of 2.926 million shares. After opening the session at $53.08, the shares went as high as $53.91 and as low as $52.84, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $18.1 billion and now has 335.16 million shares outstanding. Ball Corporation (BLL) stock has gained 14.46 percent of market value in 21 trading days.

BLL stock has a trailing 3-year beta of 0.81, offering the possibility of a lower rate of return, but also posing less risk. The portion of a company’s profit allocated to each outstanding share of common stock was $1.42 a share in the trailing twelve months. The stock’s value has surged 17.22 percent year to date (YTD) against a rise of 37.05 percent in 12 month’s time. The company’s shares still trade 0.8 percent away from its 1-year high of $53.47 and 55.29 percent up from 52-week low of $34.71. The average consensus rating on the company is 2, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a buy.

Ball Corporation (BLL) will probably climb -2.37 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $61 price as 12-month high target. This represents a whopping 13.17 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $56, which represents a return potential of 3.9 percent when compared to the closing price of the stock of $53.9 on Friday, February 08. The lowest price target for the stock is $50 — slightly more than -7.24 percent from BLL’s current share price.

History has shown that shares in Ball Corporation have gone up on 20 different earnings reaction days and are predicted to add 0.02 percent when the company reports upcoming earnings. Investors will get their next glimpse of BLL’s Q1 earnings on May 02. Analysts are forecasting revenue to suffer decline of -5 percent to $2.64B in the fiscal first quarter, while earnings are seen soaring by nearly 8 percent to $0.54 per share. It earned $0.55 per share, worse than the $0.56, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $2.8B, better than the $2.66B analysts expected. Earnings are estimated to increase by 57.2 percent this year, 13.56 percent next year and continue to increase by 11.36 percent annually for the next 5 years.

Let’s take a look at some insider activity at Ball Corporation (NYSE:BLL) and see the pattern. The earliest insider trade took place on 02/07/2019. Morrison Scott C parted with a total of 13.68 thousand shares of company at average share price of $53.01. The total for the sales was set at $725.02 thousand. After this transaction, the SR. V.P. and C.F.O. account balance stood at 435.77 thousand shares. The stock grew 1.68 percent since that insider sale. On 02/06/2019, Fisher Daniel William, Sr VP & COO Global Bev Pkg, sold 7 thousand shares at a price per share of $53.13. This removed 371.91 thousand shares from the insider’s fortune and the stock saw a 1.45 percent rally in value since the news became public. This transaction left 40.5 thousand shares in the Sr VP & COO Global Bev Pkg account.

On 11/16/2018, VP,GEN COUNSEL & CORP SEC Baker Charles E performed a sale transaction worth $840.67 thousand. This sale at $50.5 each has eliminated 16.65 thousand shares from the insider’s portfolio position. Meanwhile, shares have recorded 6.73 percent increase since the transaction was reported. The insider now is left with 220.21 thousand shares remaining in the account. Knobel Jeff A, who performs the Vice President & Treasurer job, sold 6.9 thousand shares for $327.15 thousand. The disposal occurred on 11/05/2018 was priced at $47.42 per share. The share price soared 13.67 percent since the reporting date. Knobel Jeff A now left with a stake of 71.61 thousand BLL stock worth $3.86 million after the insider selling.

The stock is currently hovering around the first support level of $53.19. Below this, the next support is placed in the zone of $52.48. Till the time, the BLL stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 71.76 on daily chart, which may remain a cause for concern. If the price breaks below $52.48 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $54.26 mark may result into a pull-back move towards $54.62 level.

Shares of Ball Corporation (BLL) are trading at a P/E ratio of 37.97 times earnings reported for the past 12 months. The industry BLL operates in has an average P/E of 21.21. Its P/E ratio went as low as 20.66X and as high as 46.08 over the 5-year span.Further, it is sporting a 1.55 on the Price-to-Sales ratio. Compare this with the industry average P/S of 1.08. 19.8 percent is the gross profit margin for Ball Corporation and operating margin sits at 8 percent. Along with this, the net profit margin is 3.9 percent.