Zacks Investment Research Downgrades Avon Products, Inc. (AVP) to Strong Sell

Zacks Investment Research lowered shares of Avon Products, Inc. (NYSE:AVP) from a hold rating to a strong sell rating in a research report sent to investors on Tuesday, May 9th.

According to Zacks, “Avon has underperformed the broader industry in the last six months, largely owing to its dismal surprise history. The company delivered a wider-than-expected loss for the second straight time, in first-quarter 2017. Results were hurt by lower Active Representatives, rise in bad debt expenses and higher transportation costs. Results were also marred by stiff competition and other macroeconomic hurdles. Going forward, management expects the second quarter to remain challenging, which caused a downtrend in estimates. Nonetheless, we remain impressed with the company’s progress with its Transformation Plan, which started its second year, this quarter. In this regard, Avon is on track to generate targeted savings of $230 million in 2017. Also, it is confident of achieving its long-term goals of low-double digit operating margin growth, Active Representatives growth of 1–2% and constant-dollar revenue growth in the mid-single digits.”

AVP has been the topic of a number of other research reports. Jefferies Group LLC set a $8.00 target price on shares of Avon Products and gave the stock a buy rating in a research note on Wednesday, January 11th. Royal Bank Of Canada reaffirmed a hold rating and set a $4.00 target price on shares of Avon Products in a research note on Friday, March 24th. Finally, B. Riley reissued a neutral rating and issued a $5.25 price objective on shares of Avon Products in a research note on Wednesday, February 22nd. Two investment analysts have rated the stock with a sell rating, three have given a hold rating and two have assigned a buy rating to the company. Avon Products presently has an average rating of Hold and a consensus target price of $5.75.

Shares of Avon Products (AVP) traded up 4.57% during mid-day trading on Tuesday, reaching $3.66. The company’s stock had a trading volume of 13,223,097 shares. The company has a 50 day moving average of $3.75 and a 200-day moving average of $4.68. The firm’s market capitalization is $1.61 billion. Avon Products has a 12 month low of $3.24 and a 12 month high of $6.96.

Avon Products (NYSE:AVP) last announced its quarterly earnings data on Thursday, May 4th. The company reported ($0.07) EPS for the quarter, missing the consensus estimate of $0.01 by $0.08. The firm had revenue of $1.33 billion for the quarter, compared to analyst estimates of $1.33 billion. Avon Products had a net margin of 0.26% and a negative return on equity of 3.68%. The firm’s revenue for the quarter was up 2.0% on a year-over-year basis. During the same quarter in the prior year, the firm earned ($0.07) earnings per share. Equities research analysts forecast that Avon Products will post $0.22 EPS for the current year.

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Institutional investors have recently added to or reduced their stakes in the stock. Two Sigma Securities LLC raised its position in Avon Products by 1.9% in the first quarter. Two Sigma Securities LLC now owns 22,824 shares of the company’s stock valued at $100,000 after buying an additional 420 shares during the last quarter. Credit Agricole S A bought a new position in shares of Avon Products during the fourth quarter valued at $104,000. Acrospire Investment Management LLC raised its position in shares of Avon Products by 33.7% in the first quarter. Acrospire Investment Management LLC now owns 24,036 shares of the company’s stock valued at $106,000 after buying an additional 6,058 shares in the last quarter. ARP Americas LLC bought a new position in shares of Avon Products during the fourth quarter valued at $111,000. Finally, A.R.T. Advisors LLC bought a new position in shares of Avon Products during the fourth quarter valued at $111,000. Institutional investors and hedge funds own 86.93% of the company’s stock.

About Avon Products

Avon Products, Inc is a manufacturer and marketer of beauty and related products. The Company’s segments include Europe, Middle East & Africa; South Latin America; North Latin America, and Asia Pacific. Its product categories are Beauty, and Fashion and Home. Beauty consists of skincare (which includes personal care), fragrance and color (cosmetics).

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