Sealed Air Corporation (SEE) Appreciation Can Be Seen As An Exit Opportunity

Sealed Air Corporation (NYSE:SEE) has been downgraded by BofA/Merrill on October 18 which now rates the stock as Neutral compared with Buy rating suggested in the past. Analysts at Jefferies, started covering the stock on May 18 with a Buy rating. The stock lost favor of SunTrust analysts who expressed their lack of confidence in it using a downgrade from Buy to Hold on January 31.

Sealed Air Corporation (SEE) hit an intraday high Thursday at $34.94. The shares finished at $34.88, after trading as low as $33.855 earlier in the session. It rose 0.2% in recent trade and currently has a stock-market value of $5.46B. Trading activity significantly improved as the volume at ready counter increased to 3,020,717 shares versus 2,285,760 in average daily trading volume over the past 20 days. So far this year, the volume has averaged about 2,069,018 shares. The stock is now 15.42% above against its bear-market low of $30.22 on October 23, 2018. It has retreated -43.18% since it’s 52-week high of $49.94 reached in December. Now the market price is down -27.32% on the year and down -29.25% YTD.

SEE’s 50 day simple moving average (SMA 50) price is $35.5 and its 200-day simple moving average (SMA 200) price is $40.97. The company’s stock currently has a total float of 154.69M shares. Its weekly volatility is hovering around 3.14% and felt 2.84% volatility in price over a month. On the upside, the share price will test short term resistance at around $35.26. On a downside, the stock is likely to find some support, which begins at $34.18. The failure to get near-term support could push it to $33.47.

Separately, it has been reported that multiple insider activity took place at Sealed Air Corporation (SEE). Director Whitaker Jerry R. acquired 1,000 shares for $8,021 in transaction occurred on 2018/08/14. After making this transaction, the Director owns a direct stake of 39,810 shares, worth $279,773, as per the last closing price. On 2018/08/13 Doheny Edward L Ii, President and CEO at SEE, purchased 5,000 shares at an average price of $39.65 per share. The new stake is valued at $2,725,698.

Director, Keizer Henry R. had invested in 600 shares for $7,019 through a trade on 2018/08/08. Following this activity, the insider holds 24,594 shares worth $244,823 as of recent close. Wall Street’s most bullish Sealed Air Corporation (NYSE:SEE) analysts are predicting the share price to blow past $47 per share during the next 12 months. The current median share price forecast by them is $42, suggesting that the stock could increase 20.41% in that time frame. The average price target of $42.14 calls for a nearly 20.81% increase in the stock price.

When looking at valuations, Sealed Air Corporation (SEE) has a cheap P/E of 18.53x as compared to industry average of 25.15x. Moreover, it trades for 12.92 times the next 12 months of expected earnings. Compared to others, Sealed Air Corporation is in a different league with regards to profitability, having net margins of -0.9%. To put some perspective around this, the industry’s average net margin is 4.64%. SEE’s ROE is 15.9%, which is also considerably better than the industry’s ROE of 8.59%. It’s also very liquid in the near term, with a current ratio of 1. The stock has a debt/capital of 0.

Shares of Sealed Air Corporation (SEE) have gained 7.6% since the company’s last earnings report. Over the past 12 fiscal quarters, Sealed Air Corporation (NYSE:SEE) has topped consensus earnings estimates in 9 quarters (75%), missed earnings in 2 quarters (16%), whereas at 1 occasion EPS met analyst expectations. SEE last reported earnings on November 01, 2018 when it released Sep-18 results that exceeded expectations. The company raked in $0.61 per share, -34.41% change on the same period last year. That was better than consensus for $0.6. Revenue for the recent quarter stood at $1.19 billion, up 5% on last year and above the $1.18 billion predicted by analysts. For this quarter, Wall Street analysts forecast revenue in a range of $1.21 billion to $1.3 billion, which should be compared with $1.23 billion generated last year. EPS is seen in a range of $0.64 to $0.69, against the $0.73 reported a year ago.