Why Is NEWELL BRANDS INC (NWL) Stock Down Today?

Newell Brands Inc (NWL) closed down 4.93% at $5.16 on May 28 after opening with a modest 0.9% gap up. The stock declined throughout the session, reaching a low of $5.16. The move follows a recent uptrend of 7.9% over eight sessions but appears to have reversed amid mixed analyst activity and continued underlying financial challenges.

What Happened

Analysts at JP Morgan and UBS both raised price targets for Newell Brands in recent days, with JP Morgan setting a new $7 target and UBS raising its to $4.75. Despite these adjustments, the stock fell sharply during the session. The company remains unprofitable with a trailing twelve-month (TTM) net loss of $0.67 per share and a revenue decline of 4.1% TTM. The stock’s 52-week range of $3.07 to $6.63 highlights the volatility it has experienced, though the current price remains above its recent low of $5.06. A Benzinga report also noted unusual call option activity ahead of the company’s earnings on July 31. Meanwhile, insider sales have continued, with three executives selling a total of $812,000 in shares over the past 90 days.

What The Data Shows

The stock traded with a volume of 3.6 million shares, or 0.4 times its 3-month average, indicating limited participation. It opened at $5.48 but fell to a session low of $5.16, closing near the bottom of the day’s range. The stock’s beta of 0.86 suggests it is less volatile than the market. Despite a 5.58% dividend yield, the company’s negative net margin of -3.9% and unprofitable status continue to weigh on investor sentiment. The stock’s 30-day average sentiment score was 57 out of 100, improving slightly to 61 in the last seven days.

What To Watch

Investors should monitor Newell Brands’ upcoming earnings report on July 31. The coverage breadth and analyst reactions to the results may provide further direction for the stock.