The stock price of Reynolds Consumer Products Inc (NASDAQ: REYN) has jumped by 0.37 compared to previous close of 27.26. Despite this, the company has seen a fall of -0.11% in its stock price over the last five trading days. seekingalpha.com reported 2024-12-04 that I reiterate my hold rating on Reynolds Consumer Products due to visible headwinds expected to pressure FY25 performance despite the current valuation of ~16x forward PE. REYN should meet its revised 4Q24 revenue guidance, benefiting from the holiday season, with management’s accurate guidance history supporting this expectation. Key headwinds include continued weakness in the Hefty Tableware segment due to value-conscious consumer behavior and potential permanent demand impairment from foam product bans.
Is It Worth Investing in Reynolds Consumer Products Inc (NASDAQ: REYN) Right Now?
Reynolds Consumer Products Inc (NASDAQ: REYN) has a price-to-earnings ratio that is above its average at 15.58x. The stock has a 36-month beta value of 0.50. Opinions on the stock are mixed, with 3 analysts rating it as a “buy,” 0 as “overweight,” 6 as “hold,” and 0 as “sell.”
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The public float for REYN is 54.20M, and at present, short sellers hold a 3.71% of that float. On December 27, 2024, the average trading volume of REYN was 583.00K shares.
REYN’s Market Performance
REYN stock saw a decrease of -0.11% in the past week, with a monthly decline of -1.90% and a quarterly a decrease of -11.60%. The volatility ratio for the week is 1.59%, and the volatility levels for the last 30 days are 1.62% for Reynolds Consumer Products Inc (REYN). The simple moving average for the last 20 days is -1.37% for REYN’s stock, with a simple moving average of -5.10% for the last 200 days.
Analysts’ Opinion of REYN
Many brokerage firms have already submitted their reports for REYN stocks, with Jefferies repeating the rating for REYN by listing it as a “Buy.” The predicted price for REYN in the upcoming period, according to Jefferies is $38 based on the research report published on August 29, 2024 of the current year 2024.
JP Morgan, on the other hand, stated in their research note that they expect to see REYN reach a price target of $28, previously predicting the price at $29. The rating they have provided for REYN stocks is “Neutral” according to the report published on November 22nd, 2023.
Goldman gave a rating of “Neutral” to REYN, setting the target price at $30 in the report published on October 03rd of the previous year.
REYN Trading at -2.59% from the 50-Day Moving Average
After a stumble in the market that brought REYN to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -16.20% of loss for the given period.
Volatility was left at 1.62%, however, over the last 30 days, the volatility rate increased by 1.59%, as shares sank -1.41% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -10.12% lower at present.
During the last 5 trading sessions, REYN fell by -0.11%, which changed the moving average for the period of 200-days by -5.56% in comparison to the 20-day moving average, which settled at $27.74. In addition, Reynolds Consumer Products Inc saw 1.94% in overturn over a single year, with a tendency to cut further gains.
Insider Trading
Reports are indicating that there were more than several insider trading activities at REYN starting from Stangl Rolf, who purchase 3,682 shares at the price of $27.50 back on Dec 19 ’24. After this action, Stangl Rolf now owns 10,889 shares of Reynolds Consumer Products Inc, valued at $101,255 using the latest closing price.
Golding Helen, the Director of Reynolds Consumer Products Inc, purchase 1,190 shares at $27.58 during a trade that took place back on Nov 14 ’24, which means that Golding Helen is holding 1,190 shares at $32,823 based on the most recent closing price.
Stock Fundamentals for REYN
Current profitability levels for the company are sitting at:
- 0.16 for the present operating margin
- 0.27 for the gross margin
The net margin for Reynolds Consumer Products Inc stands at 0.1. The total capital return value is set at 0.13. Equity return is now at value 18.65, with 7.62 for asset returns.
Based on Reynolds Consumer Products Inc (REYN), the company’s capital structure generated 0.46 points at debt to capital in total, while cash flow to debt ratio is standing at 0.3. The debt to equity ratio resting at 0.84. The interest coverage ratio of the stock is 4.48.
Currently, EBITDA for the company is 636.0 million with net debt to EBITDA at 2.56. When we switch over and look at the enterprise to sales, we see a ratio of 2.03. The receivables turnover for the company is 10.57for trailing twelve months and the total asset turnover is 0.76. The liquidity ratio also appears to be rather interesting for investors as it stands at 2.03.
Conclusion
To sum up, Reynolds Consumer Products Inc (REYN) has seen a mixed performance recently. Analysts have differing views on the stock, with some seeing it as a “buy” and others as a “hold”. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.
