Y Intercept Hong Kong Ltd has significantly increased its holdings in Greif, Inc. by an impressive 159.1% during the third quarter of 2023. According to data from Holdings Channel, the investment fund now owns 21,425 shares of the industrial products company, having acquired an additional 13,157 shares in the period. As of the end of the most recent reporting period, Y Intercept’s stake in Greif was valued at approximately $1.28 million.
Several other institutional investors have also adjusted their positions in Greif, reflecting a growing interest in the company. AXA S.A. entered the market with a new stake valued at about $9.05 million during the second quarter. Similarly, Cubist Systematic Strategies LLC and Squarepoint Ops LLC acquired stakes worth $6.05 million and $3.71 million, respectively. Swedbank AB also made a notable investment, purchasing shares valued at $3.20 million in the third quarter. Additionally, Prudential Financial Inc. increased its holdings by an extraordinary 380.0% during the same period, now owning 38,918 shares valued at approximately $2.53 million.
The growing interest from hedge funds and institutional investors indicates a strong confidence in Greif, with institutional ownership now at 45.74% of the company’s stock.
Recent Insider Transactions
In terms of insider activity, notable transactions have occurred recently at Greif. On January 12, 2024, Senior Vice President Timothy Bergwall sold 2,000 shares at an average price of $71.54, generating total proceeds of $143,080. Post-transaction, Bergwall retained ownership of 58,678 shares, valued at approximately $4.20 million. This sale represented a 3.30% decrease in his position.
Additionally, Executive Vice President Bala Sathyanarayanan sold 7,000 shares on December 10, 2023, at an average price of $66.62, totaling $466,340. Following this transaction, Sathyanarayanan held 37,725 shares valued at around $2.51 million, marking a 15.65% reduction in his stake. Over the last ninety days, company insiders have traded 32,293 shares, valued at $2.15 million, while selling 70,584 shares worth $4.41 million. Insiders currently own 7.70% of Greif’s stock.
Financial Performance and Dividends
Greif recently reported its quarterly earnings on January 27, 2024. The company posted an earnings per share (EPS) of $0.48, which fell short of the consensus estimate of $0.69 by $0.21. Revenue for the quarter was $994.8 million, below analysts’ expectations of $1.02 billion. The company saw a 7.52% net margin and a return on equity of 8.46%. Notably, this revenue represented a 2.2% decline compared to the same quarter last year, during which Greif achieved an EPS of $0.39. Analysts project that Greif, Inc. will reach an EPS of $4.11 for the current fiscal year.
The company also announced a quarterly dividend, which was disbursed on January 1, 2024. Shareholders of record on December 18, 2023, received a dividend of $0.56 per share, resulting in an annualized dividend of $2.24 and a yield of 3.2%. The dividend payout ratio stands at 85.82%.
Research analysts have begun to weigh in on Greif’s stock. Zacks Research upgraded its rating from “strong sell” to “hold” on January 5, 2024. Wall Street Zen also raised its rating from “sell” to “hold” in December. Truist Financial increased its price target from $71.00 to $79.00, maintaining a “hold” rating. Robert W. Baird set a price target of $75.00, while Wells Fargo & Company raised its target from $72.00 to $73.00, giving the stock an “equal weight” rating.
Currently, six research analysts have rated Greif, Inc. with a consensus rating of “hold” and a consensus price target of $74.50. As Greif continues to navigate its financial landscape, investor interest and insider transactions will be pivotal in shaping its future trajectory.
