Bank of New York Mellon Corp has raised its investment in Smurfit Westrock PLC, increasing its holdings by 2.3% during the third quarter of 2023. According to a filing with the Securities and Exchange Commission (SEC), the bank now owns 8,693,951 shares of Smurfit Westrock, valued at approximately $370.1 million as of the end of September. This boost involved acquiring an additional 193,099 shares during the quarter.
Several other institutional investors have also adjusted their positions in the company. Vanguard Group Inc. increased its stake by 1.6% in the second quarter, now holding 80,421,330 shares valued at $3.47 billion. State Street Corp raised its holdings by 1.7% to 20,779,789 shares worth $896.7 million, while Orbis Allan Gray Ltd significantly boosted its stake by 81.9%, acquiring 18,400,418 shares valued at $794 million.
Norges Bank also entered the fray, acquiring a new position valued at approximately $749.7 million. Additionally, Soros Fund Management LLC increased its stake by 9.2%, now owning 7,480,587 shares worth $322.8 million. Collectively, institutional investors and hedge funds hold a substantial 83.38% of Smurfit Westrock’s stock.
Analysts Adjust Price Targets for Smurfit Westrock
Recent reports from analysts indicate a range of price target adjustments for Smurfit Westrock shares. Wells Fargo & Company reduced its target from $50.00 to $48.00 while maintaining an “overweight” rating. Similarly, Citigroup lowered its target from $49.00 to $48.00, also assigning a “buy” rating.
In a more conservative move, Argus adjusted its price target down to $45.00 from $55.00, yet retained a “buy” rating. JPMorgan Chase & Co., on the other hand, increased its target from $60.00 to $61.00 and reaffirmed an “overweight” rating. Overall, ten analysts have issued a “buy” rating for the stock, while two analysts have given a “hold” rating. The consensus rating is classified as “Moderate Buy” with a target price of $51.60, according to MarketBeat.
Current Stock Performance and Earnings Report
As of the latest trading session, Smurfit Westrock shares opened at $42.13. The stock has shown resilience, with a 50-day simple moving average of $39.01 and a 200-day moving average of $41.41. The company boasts a market capitalization of $22 billion, a price-to-earnings (P/E) ratio of 29.46, and a beta of 1.09.
In its most recent earnings report, released on October 29, Smurfit Westrock reported earnings per share of $0.58, falling short of the consensus estimate of $0.68 by $0.10. The company generated revenue of $8 billion for the quarter, surpassing analyst expectations of $7.89 billion. Year-over-year, revenue has increased by 4.3%, with a return on equity of 6.21% and a net margin of 2.40%. Analysts forecast earnings per share of $3.25 for the current fiscal year.
Smurfit Westrock PLC operates globally, manufacturing and selling containerboard and paper-based packaging products. The company produces a variety of items, including corrugated containers and consumer packaging, serving markets in Ireland and internationally.
