AptarGroup (NYSE: ATR) supplies
a broad range of dispensing systems to the fragrance/cosmetic, personal care, pharmaceutical, household and food/beverage markets. Offerings include spray pumps, dispensing closures, nasal pumps, aerosol valves and lotion pumps. The firm operates on five continents and sells most of its products through an in-house sales network.
Investors were pleased last week, when the company reported Q1 EPS of 52 cents and revenues of $532.3 million. Analysts had been looking for 49 cents and $500.9 million. Both results were company records. Management also guided Q2 EPS to 60-63 cents, versus consensus of 59 cents. The company repurchased about 450,000 shares of common stock in Q1, leaving some 1.5 million shares available for repurchase under the current authorization.
The stock
popped on the news and then passed into a bullish "flag" consolidation pattern. Prices frequently exit flags moving in the same direction they were traveling on entry. In this case, that would be to the upside.
Brokers recommend the shares with one "strong buy", one "buy" and seven "holds". The ATR Price to Book ratio (2.45), Price to Cash Flow ratio (10.93) and EPS Growth rate (26.07%) compare favorably with industry, sector and S&P 500 averages. Institutions own about 95% of the outstanding shares. The stock is one of those used to calculate the S&P 400 MidCap Index. Over the past 52 weeks, it has traded between $32.87 and $45.42. A stop-loss of $38.25 looks good here.
Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com. He does not hold a position in the stock discussed above.
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