A strategic partnership has recently taken shape where Landscape Capital Management L.L.C., an investment management firm, has acquired a brand new position in the shares of the Ball Corporation in the first quarter, as reflected in most of the filings conducted with the Securities & Exchange Commission. The acquisition held 15,423 shares of the firm's total shares, which is valued at USD 803,000 in the current trading session.
Multiple large investors have recently changed their positions in the company. Importantly, Cary Street Partners Investment Advisory L.L.C. purchased a new stake in the firm in the first quarter, for about USD 32,000.
External shareholding
Strengthening Families & Communities L.L.C. greatly expanded its position in the company during the first quarter by 72.4 per cent. The firm now has 707 shares worth USD 37,000 after it purchased an additional 297 shares during the quarter. SVB Wealth L.L.C. initiated a new position in the organisation during the first quarter, acquiring shares valued at approximately USD 39,000.
Whipplewood Advisors L.L.C. significantly increased its holdings in the company in the first quarter, increasing its stake by 764.9 per cent. It currently holds 813 shares with a value of USD 42,000, after purchasing the additional 719 shares during the quarter.
Federated Hermes Inc. heightened its ownership stake in the company by 40.4 per cent in the first quarter and now holds 1,311 shares with a total value of USD 68,000 after buying 377 shares during the quarter. In total, institutional investors and hedge funds collectively own 86.51 per cent of the company's shares.
Internal shareholding
On August 28, Chairman Daniel William Fisher sold 3,400 shares of the firm, pocketing about USD 175,270 with an average price of USD 51.55 per share. After the sale, Fisher still holds 10,036 shares, valued at roughly USD 517,355.80. This move cuts his stake by about 25.31 per cent. The reduction signals a notable shift in his personal holdings. Corporate insiders currently hold 0.81 per cent of the firm's stock.
Also read: Ball Corporation offloads 41-point Saudi stake, retains minimal 10% strategic interest
Stock price movement
Ball's stock saw a modest uptick of USD 0.22 on Friday, closing at USD 50.64. Trading volume came in at just 430,513 shares, which is noticeably below the average daily volume of 2.6 million. The company currently carries a market capitalisation of USD 13.78 billion, with a price-to-earnings ratio of 26.26, a P/E/G ratio of 1.14 and a beta of 1.06, indicating fairly average risk relative to the market.
On the liquidity front, the firm's quick ratio stands at 0.67 and its current ratio at 1.00. The debt-to-equity ratio is 1.23, reflecting a relatively leveraged position. Over the past year, the company's shares have traded between USD 43.51 and USD 68.12. The 50-day moving average is USD 55.76, while the 200-day moving average is USD 53.17, meaning the stock is currently trading below both benchmarks.
Additionally, the company has also reported its latest quarterly results on August 5. Earnings per share came in at USD 0.90, topping analyst estimates of USD 0.87. Revenue reached USD 3.34 billion, which not only beat projections of USD 3.10 billion but also represented a 12.8 per cent year-on-year increase.
The company posted a net margin of 4.49 per cent and a return on equity of 16.81 per cent. Last year's comparable quarter saw an EPS of USD 0.74 per share. Looking forward, the firm's own guidance for fiscal 2025 puts expected EPS in the USD 3.55 to USD 3.65 range. Analysts, on the other hand, are a bit more conservative, calling for a full-year EPS of USD 3.48.
Also read: Kimelman & Baird trims stake in Ball Corporation, among others
Dividend announcement
The corporation has announced a quarterly dividend of USD 0.20 per share. The payout date is set for September 16 and shareholders need to be on record by September 2 to qualify, same date for the ex-dividend cutoff.
On an annual basis, that comes out to USD 0.80 per share, translating to a yield of 1.6 per cent. The company's dividend payout ratio currently sits at 41.45 per cent, indicating a balanced approach between rewarding shareholders and retaining earnings for future initiatives.
Analysts view point
Wells Fargo nudged their price target up to USD 54 from USD 50 but kept an "underweight" rating as of July 18. Bank of America stayed "neutral," trimming its target slightly to USD 66, down from USD 67 on July 9, while UBS Group also stated it as "neutral," lifting the target price to USD 60 from USD 76 that same day.
Citigroup bumped their target price to USD 63, up from USD 55 on July 3, marking a "neutral" outlook either. Truist Financial took a more bullish stance on July 11, raising its target to USD 69, up from USD 62 and giving Ball a "buy" rating. Six analysts say "Buy," four are sticking with "Hold" and just one is on the "Sell" side. The company is rated a "Hold" overall, with an average price target of USD 65.27.
Also read: Ball Corporation launches USD 750M senior notes offering to strengthen liquidity
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