Silgan Holdings Inc. (NYSE:SLGN) Declares Dividend Increase – $0.20 Per Share

Silgan Holdings Inc. (NYSE:SLGN) declared a quarterly dividend on Tuesday, February 25th, Wall Street Journal reports. Shareholders of record on Monday, March 17th will be given a dividend of 0.20 per share by the industrial products company on Monday, March 31st. This represents a $0.80 dividend on an annualized basis and a yield of 1.46%. The ex-dividend date of this dividend is Monday, March 17th. This is an increase from Silgan’s previous quarterly dividend of $0.19.

Silgan has raised its dividend by an average of 10.7% annually over the last three years and has increased its dividend annually for the last 21 consecutive years. Silgan has a payout ratio of 17.0% meaning its dividend is sufficiently covered by earnings. Analysts expect Silgan to earn $4.47 per share next year, which means the company should continue to be able to cover its $0.76 annual dividend with an expected future payout ratio of 17.0%.

Silgan Price Performance

Shares of NYSE:SLGN traded down $0.47 during trading on Wednesday, reaching $54.65. 719,619 shares of the company traded hands, compared to its average volume of 672,671. The company’s 50 day moving average is $53.00 and its two-hundred day moving average is $52.67. The company has a quick ratio of 0.28, a current ratio of 0.45 and a debt-to-equity ratio of 1.24. Silgan has a 52 week low of $41.14 and a 52 week high of $58.14. The firm has a market capitalization of $5.84 billion, a PE ratio of 21.18, a PEG ratio of 1.27 and a beta of 0.71.

Silgan (NYSE:SLGN) last announced its quarterly earnings results on Wednesday, January 29th. The industrial products company reported $0.85 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.82 by $0.03. Silgan had a net margin of 4.72% and a return on equity of 19.70%. As a group, sell-side analysts predict that Silgan will post 4.11 earnings per share for the current year.

Insiders Place Their Bets

In other news, CEO Adam J. Greenlee sold 125,000 shares of the stock in a transaction dated Monday, February 24th. The shares were sold at an average price of $54.73, for a total value of $6,841,250.00. Following the sale, the chief executive officer now directly owns 227,332 shares of the company’s stock, valued at approximately $12,441,880.36. This represents a 35.48 % decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, EVP Robert B. Lewis sold 20,000 shares of the firm’s stock in a transaction dated Thursday, February 13th. The shares were sold at an average price of $53.22, for a total value of $1,064,400.00. Following the transaction, the executive vice president now directly owns 152,133 shares in the company, valued at approximately $8,096,518.26. This represents a 11.62 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders own 1.39% of the company’s stock.

Analysts Set New Price Targets

Several research firms have commented on SLGN. Wells Fargo & Company increased their target price on Silgan from $58.00 to $63.00 and gave the company an “overweight” rating in a research report on Thursday, January 30th. JPMorgan Chase & Co. raised their price target on shares of Silgan from $53.00 to $57.00 and gave the company a “neutral” rating in a research note on Thursday, January 30th. Bank of America raised their target price on Silgan from $60.00 to $61.00 and gave the stock a “buy” rating in a research report on Monday, January 6th. Truist Financial reiterated a “buy” rating and issued a $70.00 price target (up previously from $69.00) on shares of Silgan in a research report on Thursday, January 30th. Finally, Robert W. Baird upped their target price on Silgan from $60.00 to $62.00 and gave the company an “outperform” rating in a report on Thursday, January 30th. Two investment analysts have rated the stock with a hold rating and eight have assigned a buy rating to the stock. According to data from MarketBeat.com, Silgan presently has a consensus rating of “Moderate Buy” and a consensus target price of $64.22.

Silgan Company Profile

Silgan Holdings Inc, together with its subsidiaries, manufactures and sells rigid packaging solutions for consumer goods products in the United States and internationally. It operates through three segments: Dispensing and Specialty Closures, Metal Containers, and Custom Containers. The Dispensing and Specialty Closures segment offers a range of metal and plastic closures, and dispensing systems for food, beverage, health care, garden, home, personal care, beauty products, and hard surface cleaning products, as well as capping/sealing equipment and detection systems.