Newell Brands Inc. [NWL] Stock trading around $20.36 per share: What’s Next?

Newell Brands Inc. [NASDAQ: NWL] gained 3.19% or 0.63 points to close at $20.36 with a heavy trading volume of 3968684 shares. The company report on November 10, 2020 that Newell Brands Announces Tender Offer for $300 Million of Outstanding Debt.

Newell Brands Inc. (NASDAQ: NWL) (the “Company” or “Newell Brands”) announced that it has commenced a debt tender offer (the “Offer”) to purchase for cash up to the Maximum Tender Amount (as defined below) in aggregate principal amount of the Company’s outstanding securities listed in Table I below (collectively, the “Notes”), subject to the Acceptance Priority Levels as defined below. The “Maximum Tender Amount” is an aggregate principal amount equal to $300 million. The Offer is intended to allow the Company to reduce the amount and cost of the Company’s outstanding indebtedness. The Company expects to fund the Offer with available cash on hand.

Table I.

It opened the trading session at $19.98, the shares rose to $20.63 and dropped to $19.755, the range by which the price of stock traded the whole day. The daily chart for NWL points out that the company has recorded 61.08% gains over the past six months. However, it is still -95.02% lower than its most recent low trading price.

If we look at the average trading volume of 2.58M shares, NWL reached to a volume of 3968684 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here is what top equities market gurus are saying about Newell Brands Inc. [NWL]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for NWL shares is $19.50 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on NWL stock is a recommendation set at 2.80. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

Consumer Edge Research have made an estimate for Newell Brands Inc. shares, keeping their opinion on the stock as Underweight, with their previous recommendation back on November 11, 2019. While these analysts kept the previous recommendation, SunTrust raised their target price from $15 to $25. The new note on the price target was released on September 30, 2019, representing the official price target for Newell Brands Inc. stock.

The Average True Range (ATR) for Newell Brands Inc. is set at 0.71, with the Price to Sales ratio for NWL stock in the period of the last 12 months amounting to 0.86. The Price to Book ratio for the last quarter was 2.32, with the Price to Cash per share for the same quarter was set at 2.10. Price to Free Cash Flow for NWL in the course of the last twelve months was 10.42 with Quick ratio for the last quarter at 1.00.

Trading performance analysis for NWL stock

Newell Brands Inc. [NWL] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 6.54. With this latest performance, NWL shares gained by 12.99% in over the last four-week period, additionally plugging by 61.08% over the last 6 months – not to mention a rise of 3.14% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for NWL stock in for the last two-week period is set at 64.32, with the RSI for the last a single of trading hit 67.42, and the three-weeks RSI is set at 63.22 for Newell Brands Inc. [NWL]. The present Moving Average for the last 50 days of trading for this stock 17.86, while it was recorded at 19.60 for the last single week of trading, and 15.84 for the last 200 days.

Newell Brands Inc. [NWL]: A deeper dive into fundamental analysis

Operating Margin for any stock indicates how profitable investing would be, and Newell Brands Inc. [NWL] shares currently have an operating margin of +8.31 and a Gross Margin at +33.15. Newell Brands Inc.’s Net Margin is presently recorded at +1.92.

Return on Total Capital for NWL is now 6.82, given the latest momentum, and Return on Invested Capital for the company is 1.63. Return on Equity for this stock inclined to 3.65, with Return on Assets sitting at 1.12. When it comes to the capital structure of this company, Newell Brands Inc. [NWL] has a Total Debt to Total Equity ratio set at 128.90. Additionally, NWL Total Debt to Total Capital is recorded at 56.31, with Total Debt to Total Assets ending up at 40.90. Long-Term Debt to Equity for the company is recorded at 119.53, with the Long-Term Debt to Total Capital now at 52.22.

Reflecting on the efficiency of the workforce at the company, Newell Brands Inc. [NWL] managed to generate an average of $6,203 per employee. Receivables Turnover for the company is 5.26 with a Total Asset Turnover recorded at a value of 0.58.Newell Brands Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 1.00 and a Current Ratio set at 1.50.

Newell Brands Inc. [NWL]: An earnings per share (EPS) analysis

With the latest financial reports released by the company, Newell Brands Inc. posted 0.42/share EPS, while the average EPS was predicted by analysts to be reported at 0.39/share. When compared, the two values demonstrate that the company surpassed the estimates by a Surprise Factor of 7.70%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for NWL. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Newell Brands Inc. go to 4.45%.

An analysis of insider ownership at Newell Brands Inc. [NWL]

There are presently around $7,595 million, or 90.00% of NWL stock, in the hands of institutional investors. The top three institutional holders of NWL stocks are: BLACKROCK INC. with ownership of 45,710,798, which is approximately -2.702% of the company’s market cap and around 0.30% of the total institutional ownership; VANGUARD GROUP INC, holding 44,742,821 shares of the stock with an approximate value of $910.96 million in NWL stocks shares; and ICAHN CARL C, currently with $889.83 million in NWL stock with ownership of nearly 0% of the company’s market capitalization.

Positions in Newell Brands Inc. stocks held by institutional investors increased at the end of October and at the time of the October reporting period, where 207 institutional holders increased their position in Newell Brands Inc. [NASDAQ:NWL] by around 20,921,093 shares. Additionally, 257 investors decreased positions by around 24,360,757 shares, while 80 investors held positions by with 327,759,319 shares. The mentioned changes placed institutional holdings at 373,041,169 shares, according to the latest SEC report filing. NWL stock had 60 new institutional investments in for a total of 4,723,933 shares, while 58 institutional investors sold positions of 7,621,119 shares during the same period.

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