On April 7, 2025, Amcor PLC (AMCR) closed at $8.92, down 3.25%, making it one of the most actively traded stocks of the day.
With trading volume reaching 66.2 million, more than double its 50-day average, the packaging giant drew sharp market attention amid a wave of institutional activity and market volatility. But is this a dip worth buying? Let’s break it down.
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Why the Buzz Around AMCR?
Amcor PLC saw a surge in trading activity on April 7, 2025, becoming one of the most active stocks of the day. The drop in price came amid broader market pressures and heightened institutional activity. Notably:
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National Bank of Canada FI offloaded ~61,890 shares
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New sustainability initiatives like paper-based packaging with Riverside Natural Foods may attract ESG investors.
Risk Factors to Consider:
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High Leverage: A debt-to-equity ratio of 170.14% puts Amcor in a leveraged position compared to peers.
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Valuation Stretch: Trading well above the sector median on price-to-book and cash flow.
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Dividend Yield: At 5.52% over the past year, it’s solid, but not exceptional relative to peers—ranking below median.
Additionally, risk-adjusted returns have been subpar, meaning performance has been uneven even if headline growth looks strong.
Is Amcor Worth a Look?
While the stock has lost 2.51% over the past year, it continues to offer a compelling mix of growth, stability, and innovation. The recent sell-off may present a buy-the-dip opportunity, especially for long-term investors focused on sustainability and steady capital appreciation.
With a low volatility profile, improving packaging innovation, and analyst-backed upside of over 30%, Amcor remains a strong candidate in the packaging sector, provided investors are comfortable with its debt load and valuation premium.
Muzzammil is a content writer at Stock Target Advisor. He has been writing stock news and analysis at Stock Target Advisor since 2023 and has worked in the financial domain in various roles since 2020. He has previously worked on an equity research firm that analyzed companies listed on the stock markets in the U.S. and Canada and performed fundamental and qualitative analyses of management strength, business strategy, and product/services forecast as indicated by major brokers covering the stock.
