Smurfit Westrock PLC (NYSE: SW) has received an average target price of $53.30 from analysts as the company navigates its latest financial developments. Thirteen analysts currently cover the stock, with ratings indicating a consensus of “Moderate Buy.” Among these, one analyst recommends selling the stock, another suggests holding, while ten analysts advocate for buying, and one has issued a strong buy recommendation.
The $53.30 average target price reflects a combination of recent analyses. For instance, on December 18, 2023, the Royal Bank Of Canada set a target price of $51.00 for Smurfit Westrock shares. Morgan Stanley reiterated an “overweight” rating with a target price of $52.00 in its report dated November 3, 2023. Additionally, Seaport Res Ptn upgraded the stock from a “hold” to a “strong buy” on October 6, 2023. Conversely, Wells Fargo & Company reduced its price target from $52.00 to $50.00 while maintaining an “overweight” rating on October 30, 2023.
Recent Financial Performance
Smurfit Westrock’s most recent quarterly earnings report revealed some challenges. On October 29, 2023, the company reported earnings of $0.58 per share (EPS), falling short of the consensus estimate of $0.68 by $0.10. Despite this, revenue for the quarter reached $8 billion, exceeding the anticipated figure of $7.89 billion. The company also noted a net margin of 2.40% and a return on equity of 6.21%. Year-over-year, revenue increased by 4.3%, showcasing resilience in a competitive market.
Analysts project that Smurfit Westrock will achieve an EPS of 3.25 for the current fiscal year, a figure that reflects optimistic forecasts despite recent earnings challenges.
Dividend Announcement and Institutional Investments
In addition to its earnings report, Smurfit Westrock announced a quarterly dividend payment of $0.4308 per share, which was distributed on December 18, 2023. Investors of record as of November 14, 2023 were eligible for this dividend, which translates to an annualized dividend of $1.72 and a yield of 4.4%. The company’s current dividend payout ratio stands at 120.28%, indicating a strong commitment to returning value to shareholders.
Institutional investors have shown active interest in Smurfit Westrock. Recently, FNY Investment Advisers LLC acquired a new stake valued at approximately $85,000. Meanwhile, Swiss Life Asset Management Ltd increased its stake by 16.2%, now holding 85,111 shares worth $3,623,000. Other notable institutional movements include Groupama Asset Management, which raised its holdings by 5.9%, and Danske Bank A S, which purchased a new position valued at about $3,494,000. Currently, 83.38% of Smurfit Westrock’s stock is owned by institutional investors, reflecting significant confidence in the company’s future.
Smurfit Westrock PLC, headquartered in Ireland, operates globally, manufacturing and selling containerboard, corrugated containers, and various paper-based packaging products. The company continues to play a vital role in the packaging industry, demonstrating both resilience and growth potential despite market fluctuations.
