AptarGroup, Inc. (ATR) Buy or Sell Stock Guide

Last updated: Last Thursday

The analysis below may be helpful to you if you have any of the following questions about ATR stock:

  • Is ATR a buy or a sell?
  • Should I sell or hold ATR stock today?
  • Is ATR a good buy / a good investment?
  • What are ATR analyst opinions, recommendations, ratings?

Here are ATR stock buy reasons/signals:

1. For certain medical treatments, traditional drug delivery via pill or syringe may not be ideal and there could be a migration toward inhaler and spray delivery in these areas.

2. Aptar has strong relationships with multinational consumer goods and pharmaceutical companies, and should thus find plenty of business in the emerging economies of Asia and Latin America.

3. Aptar's pharmaceutical segment will continue to generate generous amounts of free cash flow to help internally finance the group's international expansion plans and maintain an investment-grade credit rating.

4. ATR quarterly revenue growth was 5.90%, higher than the industry and sector average revenue growth (5.05% and 4.52%, respectively).

5. ATR profitability is improving. The YoY profit margin change was 0.22pp.

6. ATR forward dividend yield is 1.48%, higher than the industry (1.35%) and sector (1.02%) forward dividend yields.

Here are ATR stock sell reasons/signals:

1. There have been many dispensing innovations in recent years, particularly in the consumer goods space, so we may have passed the peak of the current replacement cycle.

2. Some pharmaceutical companies have taken drug delivery development in-house. If that trend intensifies, it could result in lower demand for Aptar's pharmaceutical products.

3. The consolidation of large consumer products and pharmaceutical companies will reduce Aptar's bargaining power over its customers.

4. ATR stock price ($87.08) is close to the 52-week high ($89.79). Perhaps now is a good time to sell?

5. ATR forward P/E ratio is 23.90, and it’s high compared to its industry peers’ P/E ratios.

6. ATR Price/Sales ratio is 2.26, and it’s high compared to its industry peers’ P/S ratios.

7. ATR PEG ratio (P/E adjusted for growth) is 2.84, and it’s high compared to its industry peers’ PEG ratios.

8. ATR average analyst price target ($84.00) is below its current price ($87.08).

9. ATR short interest (days to cover the shorts) ratio is 5.23. The stock garners more short interest than the average industry, sector or S&P 500 stock.

What are your thoughts on ATR?

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