Avery Dennison (AVY) | News Based Sentiment Analysis

• On September 23, 2025, Avery Dennison released its Q3 2025 EPS guidance, projecting earnings between $2.24 and $2.40, following a strong Q2 where they reported $2.42 EPS – exceeding expectations by $0.04. While this indicates continued profitability, revenue for the latest reported quarter was $2.22 billion, slightly below estimates and representing a 0.7% year-over-year decline.
• Avery Dennison is strategically expanding its presence in the IoT space through a continued partnership with Wiliot, announced on September 22, 2025. The company will manufacture Wiliot’s next-generation IoT Bluetooth-enabled sensors, aiming to scale the technology globally and accelerate real-time visibility solutions for supply chains.
• To strengthen its financial position, Avery Dennison closed a €500 million senior notes offering on September 11, 2025, netting approximately €493.5 million. These funds are earmarked for debt refinancing and potential acquisitions, despite a recent stock decline and current undervaluation.
• Institutional investors demonstrated varied activity throughout September. Meyer Handelman Co. increased its stake by 18.2% to 38,171 shares (valued at approximately $6.698 million as of September 26, 2025), while Congress Asset Management Co. increased holdings by 4.6% and Wealth Enhancement Advisory Services LLC raised its stake by 31.3% between September 26-28, 2025.
• Avery Dennison launched the AD Nanoblock HF/NFC inlay on September 25, 2025, one of the smallest on the market with a 4.5 x 4.5 mm antenna. This product targets space-constrained applications in apparel, healthcare, and food, enhancing consumer engagement and brand protection.
• Bill Toney, Vice President of Advanced Technology, Solutions Group at Avery Dennison, was honored with the AIM Paul Bergé International Business Development Award on September 24, 2025, recognizing his contributions to automatic identification and data capture technologies.
• The company continues to reward shareholders with a consistent dividend, declaring a quarterly payment of $0.94 on September 23, 2025, resulting in an annualized yield of 2.3% and a payout ratio of 42.20%, with 15 consecutive years of dividend increases.

The Investment Story: September was a month of strategic maneuvering for Avery Dennison, balancing solid profitability with expansion into the IoT space and a commitment to shareholder returns, all while navigating a cautious market and mixed investor sentiment.

What It Means for Investors: The IoT partnership and new product launches offer growth potential, but the slight revenue decline and mixed institutional activity suggest a need for careful monitoring. The consistent dividend provides a steady return, but the recent stock decline warrants attention.

Looking Ahead: Investors should closely monitor the impact of the Wiliot partnership and Q3 2025 results, paying attention to revenue growth and the utilization of the new capital. Tracking institutional investor behavior and analyst revisions will also be crucial.

The Bottom Line: Avery Dennison appears to be a financially stable company strategically investing in future growth, but near-term headwinds and mixed signals warrant a balanced investment approach.