Bank of New York Mellon Corp has increased its investment in Smurfit Westrock PLC, boosting its holdings by 2.3% during the third quarter of 2023. According to the company’s latest filing with the Securities and Exchange Commission (SEC), Bank of New York Mellon now owns 8,693,951 shares of Smurfit Westrock, valued at approximately $370.1 million.
The financial institution acquired an additional 193,099 shares during the quarter, bringing its total ownership to about 1.67% of the company. This increase in shareholding reflects a continued interest in Smurfit Westrock, which has seen notable activity from various institutional investors.
Institutional Investor Activity
Several hedge funds and institutional investors have also adjusted their stakes in Smurfit Westrock. The Vanguard Group Inc. raised its position by 1.6% in the second quarter, now holding 80,421,330 shares valued at $3.47 billion after acquiring an additional 1,233,997 shares.
State Street Corp increased its stake by 1.7%, now owning 20,779,789 shares worth $896.7 million following a purchase of 339,787 shares. Orbis Allan Gray Ltd made a significant move by increasing its holdings by 81.9%, now owning 18,400,418 shares valued at $794 million after acquiring 8,286,205 shares.
Additionally, Norges Bank entered the scene with a new stake valued at around $749.7 million, while Soros Fund Management LLC boosted its holdings by 9.2%, now owning 7,480,587 shares worth $322.8 million. Collectively, institutional investors and hedge funds hold 83.38% of Smurfit Westrock’s stock.
Analysts Adjust Price Targets
In the wake of these developments, analysts have revised their price targets for Smurfit Westrock shares. Wells Fargo & Company decreased its target from $50.00 to $48.00, maintaining an “overweight” rating. Citigroup also adjusted its target downwards, from $49.00 to $48.00, issuing a “buy” recommendation.
Argus has lowered its price target from $55.00 to $45.00, while JPMorgan Chase & Co. increased its target from $60.00 to $61.00, retaining an “overweight” rating. Morgan Stanley reaffirmed its “overweight” rating as well.
As of now, ten investment analysts have rated Smurfit Westrock shares as a Buy, while two have given a Hold rating. According to data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and a target price of $51.60.
Stock Performance Overview
On the New York Stock Exchange, shares of Smurfit Westrock (NYSE: SW) opened at $42.13 on Friday. The stock has shown variability, with a 50-day simple moving average of $39.01 and a 200-day simple moving average of $41.41. The company boasts a market capitalization of $22 billion, a P/E ratio of 29.46, and a beta of 1.09.
Looking back over the past year, Smurfit Westrock reached a low of $32.73 and a high of $55.54. The company reported its quarterly earnings on October 29, revealing earnings per share of $0.58, which fell short of the consensus estimate of $0.68 by $0.10. Revenue for the quarter was reported at $8 billion, surpassing the consensus estimate of $7.89 billion. The company achieved a return on equity of 6.21% and a net margin of 2.40%, with year-over-year revenue growth of 4.3%.
Company Overview
Smurfit Westrock PLC, along with its subsidiaries, manufactures and distributes containerboard, corrugated containers, and other paper-based packaging products both in Ireland and internationally. The company produces containerboard, which it converts into corrugated containers or sells to third parties, alongside various other types of paper including consumer packaging board, sack paper, and graphic paper.
As institutional interest and analyst ratings continue to evolve, Smurfit Westrock remains a focal point for investors navigating the paper and packaging sector.
