Acco Brands (NYSE:ACCO) has recently been upgraded from a hold to a buy rating by Wall Street Zen, reflecting a positive shift in sentiment among some analysts. This upgrade comes despite a contrasting assessment from Weiss Ratings, which reiterated a “sell (d+)” rating on October 8, 2024. The mixed reviews highlight the differing perspectives on the company’s performance and future prospects.
As of now, one investment analyst has rated Acco Brands with a buy, another has issued a hold rating, and a third has assigned a sell rating. According to data compiled by MarketBeat, the company currently holds an average rating of “hold” with a consensus price target of $6.00.
Strong Quarterly Earnings Announced
Acco Brands delivered its quarterly earnings results on March 15, 2024, reporting earnings per share (EPS) of $0.32. The company achieved a net margin of 2.63% and a return on equity of 12.96%. Its revenue for the quarter totaled $499.40 million. Looking ahead, Acco Brands has set its fiscal year 2025 guidance between $0.830 and $0.900 EPS. Analysts expect the company to post an average of $1.02 EPS for the current fiscal year, indicating a cautious optimism regarding its financial outlook.
The company also recently declared a quarterly dividend, which was paid on December 10, 2024. Shareholders of record on November 21, 2024, received a dividend of $0.075 per share, translating to an annualized dividend of $0.30 and a yield of 7.6%. The ex-dividend date was also set for November 21, 2024, while the dividend payout ratio stands at 71.43%.
Institutional Investor Activity
Recent trading activity reveals that hedge funds have been active in buying and selling shares of Acco Brands. Allspring Global Investments Holdings LLC increased its stake by 2.4% during the third quarter, now holding 7,463,492 shares valued at approximately $30.4 million after acquiring an additional 174,984 shares. Similarly, Vanguard Group Inc. raised its holdings by 1.8%, owning 6,237,515 shares valued at about $24.9 million following an increase of 107,480 shares.
Other notable movements include Capital Management Corp VA, which expanded its position in Acco Brands by 2.0%, now holding 6,030,001 shares worth around $24.1 million. American Century Companies Inc. reported a significant increase of 10.2% in its stake, totaling 2,774,426 shares valued at approximately $9.9 million. Arrowstreet Capital Limited Partnership also made headlines with a remarkable growth of 102.5% in its stake, now owning 1,550,367 shares valued at around $5.6 million.
Institutional investors collectively own 84.56% of Acco Brands, highlighting a strong level of confidence from large stakeholders.
Acco Brands Corporation, headquartered in Lake Zurich, Illinois, is recognized globally as a provider of branded office and school supplies. The company offers a diverse range of products designed to enhance productivity and organization for consumers, educational institutions, and commercial clients. Its well-known brands include ACCO, Swingline, GBC, Kensington, Mead, and Five Star.
As the company navigates mixed analyst ratings and robust financial results, investors remain attentive to ongoing developments in Acco Brands’ performance and market position.
