Traders Buy High Volume of Call Options on Crown (NYSE:CCK)

Crown Holdings, Inc. (NYSE:CCK) saw some unusual options trading activity on Thursday. Stock traders acquired 4,760 call options on the company. This represents an increase of approximately 651% compared to the typical daily volume of 634 call options.

Several hedge funds and other institutional investors have recently made changes to their positions in CCK. Marshall Wace LLP purchased a new stake in shares of Crown during the 1st quarter valued at about $321,000. First Trust Advisors LP grew its holdings in Crown by 2.5% during the 1st quarter. First Trust Advisors LP now owns 75,709 shares of the industrial products company’s stock valued at $4,131,000 after purchasing an additional 1,844 shares during the last quarter. State Street Corp grew its holdings in Crown by 2.4% during the 3rd quarter. State Street Corp now owns 2,958,648 shares of the industrial products company’s stock valued at $195,448,000 after purchasing an additional 69,238 shares during the last quarter. Andra AP fonden grew its holdings in Crown by 4.0% during the 3rd quarter. Andra AP fonden now owns 83,700 shares of the industrial products company’s stock valued at $5,529,000 after purchasing an additional 3,200 shares during the last quarter. Finally, Pictet Asset Management Ltd. grew its holdings in Crown by 4.0% during the 3rd quarter. Pictet Asset Management Ltd. now owns 47,121 shares of the industrial products company’s stock valued at $3,113,000 after purchasing an additional 1,800 shares during the last quarter. Hedge funds and other institutional investors own 90.46% of the company’s stock.

A number of research analysts recently weighed in on CCK shares. Barclays lifted their target price on shares of Crown from $88.00 to $91.00 and gave the company an “overweight” rating in a research note on Thursday, February 6th. Robert W. Baird boosted their price target on shares of Crown from $75.00 to $100.00 and gave the stock an “outperform” rating in a research note on Thursday, February 6th. They noted that the move was a valuation call. Goldman Sachs Group upgraded shares of Crown from a “neutral” rating to a “buy” rating and decreased their price target for the stock from $78.00 to $61.00 in a research note on Monday. Morgan Stanley decreased their price target on shares of Crown from $78.00 to $63.00 and set an “equal weight” rating on the stock in a research note on Wednesday, March 18th. Finally, ValuEngine upgraded shares of Crown from a “sell” rating to a “hold” rating in a research note on Tuesday, March 3rd. Four equities research analysts have rated the stock with a hold rating and nine have given a buy rating to the stock. The stock currently has a consensus rating of “Buy” and an average target price of $78.91.

Shares of CCK stock opened at $58.06 on Friday. The stock has a market cap of $7.16 billion, a P/E ratio of 15.32, a PEG ratio of 1.40 and a beta of 1.31. Crown has a 52 week low of $42.97 and a 52 week high of $80.57. The company has a quick ratio of 0.61, a current ratio of 1.03 and a debt-to-equity ratio of 3.81. The company’s fifty day simple moving average is $69.02 and its two-hundred day simple moving average is $70.31.

Crown (NYSE:CCK) last announced its quarterly earnings results on Tuesday, February 4th. The industrial products company reported $1.04 EPS for the quarter, topping the consensus estimate of $0.95 by $0.09. The business had revenue of $2.79 billion for the quarter, compared to analysts’ expectations of $2.72 billion. Crown had a net margin of 4.37% and a return on equity of 37.68%. The business’s quarterly revenue was up 2.1% compared to the same quarter last year. During the same quarter in the previous year, the company earned $1.00 EPS. On average, analysts anticipate that Crown will post 5.4 EPS for the current fiscal year.

Crown announced that its Board of Directors has initiated a stock repurchase plan on Tuesday, March 10th that allows the company to buyback $250.00 million in outstanding shares. This buyback authorization allows the industrial products company to repurchase up to 3.2% of its stock through open market purchases. Stock buyback plans are often a sign that the company’s management believes its shares are undervalued.

Crown Company Profile

Crown Holdings, Inc designs, manufactures, and sells packaging products and equipment for consumer goods and industrial products in the Americas, Europe, and the Asia Pacific. It offers products for consumer goods, including steel and aluminum cans for food, beverage, household, and other consumer products; glass bottles for beverage product; and metal vacuum closures and steel crowns through its sales organization to the soft drink, food, citrus, brewing, household products, personal care, and various other industries.

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