AVY Stock: Insider Activity, Filings & Research

Avery Dennison Corporation (AVY) — Drillr’s hub for AVY insider activity, SEC filings, earnings signals and AI research. Over the trailing 3 months, AVY insiders filed 0 open-market buys and 23 sales (SEC Form 4).

Sentiment

0/100

Buys (3m)

Sells (3m)

Net (3m)

-$20.0M

Insider trades by month Buys Sells

Aug

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Context3-month price -16.7%Institutions mixed (13F)

Date	Insider	Type	Shares	Price
May 4, 2026	MEJIA MARIA FERNANDAdirector	Option	1,087	$164.01
May 4, 2026	Flitman David Edirector	Grant	1,128	—
May 4, 2026	Siewert Patrickdirector	Option	1,087	$164.01
May 4, 2026	Butier Mitchell Rdirector	Grant	1,829	—
May 4, 2026	Siewert Patrickdirector	Tax	327	$164.01
May 4, 2026	Butier Mitchell Rdirector	Option	1,763	$164.01
May 4, 2026	Dickson Ward H.director	Grant	1,128	—
May 4, 2026	Alford Bradley Adirector	Grant	1,128	—
May 4, 2026	Wagner William Raymonddirector	Grant	1,128	—
May 4, 2026	Dickson Ward H.director	Option	1,087	$164.01
May 4, 2026	Lopez Andres Albertodirector	Option	1,087	$164.01
May 4, 2026	Alford Bradley Adirector	Option	1,087	$164.01
May 4, 2026	MEJIA MARIA FERNANDAdirector	Grant	1,128	—
May 4, 2026	Reverberi Francescadirector	Grant	1,128	—
May 4, 2026	Reverberi Francescadirector	Tax	327	$164.01

Source: AVY SEC Form 4 filings, latest May 4, 2026. For informational purposes only — not investment advice.

Overview

Avery Dennison Corporation (NYSE:AVY) is a multinational materials science and manufacturing company founded in 1935 and headquartered in Glendale, California. Originally known as Avery International Corporation until 1990, the company has evolved from a traditional adhesive label manufacturer into a technology-driven solutions provider specializing in pressure-sensitive materials, intelligent labeling systems, and branding solutions. With operations spanning the United States, Europe, Asia, Latin America, and other international markets, Avery Dennison serves diverse industries including retail, apparel, automotive, healthcare, and food and beverage through its three main business segments.

Business

Avery Dennison operates in the materials science and labeling solutions industry, focusing on three primary business segments that collectively generate approximately $8.8 billion in annual revenue. The Materials Group represents the company's largest segment, manufacturing pressure-sensitive materials and products. This division produces adhesive-backed materials used in labels, packaging, graphics, and industrial applications. Key products include pressure-sensitive label and packaging materials under brands like Fasson, JAC, Avery Dennison, and Mactac, as well as durable cast films and reflective materials for construction, automotive, and traffic safety applications. The segment serves home and personal care companies, beverage manufacturers, pharmaceutical companies, and commercial sign makers who need materials that stick reliably to various surfaces. The Solutions Group (formerly Retail Branding and Information Solutions) focuses on brand embellishments, tickets, tags, labels, and increasingly, intelligent labeling technologies. This segment designs and manufactures decorative elements for clothing and retail products, radio-frequency identification (RFID) products, and digital solutions for inventory management. The division's crown jewel is its Intelligent Labels platform, which incorporates RFID technology into traditional labels, enabling real-time tracking of inventory from manufacturing through retail sale. This technology allows retailers to know exactly what products are in stock, where they're located, and when they need restocking without manual counting. The Industrial and Healthcare Materials segment produces specialized tapes, medical fasteners, and performance polymers for automotive, electronics, construction, and healthcare applications. This includes medical-grade adhesive products used in hospitals and specialized industrial tapes for manufacturing processes. The Intelligent Labels platform deserves special attention as it represents the company's highest-growth opportunity, targeting over 20% annual growth. These smart labels contain tiny RFID chips that can be read by scanners, providing real-time inventory visibility. Unlike traditional barcodes that require line-of-sight scanning, RFID labels can be read in bulk and through packaging, dramatically improving inventory accuracy and reducing labor costs for retailers.

Revenue model

Avery Dennison generates revenue primarily through product sales across its three business segments, with different pricing models and customer relationships in each division. The Materials Group operates on a manufacturing and distribution model, selling pressure-sensitive materials and adhesive products to converters, printers, and end-users. Revenue comes from the sale of raw materials and finished products, with pricing typically based on raw material costs plus margin. The company's customers include label converters who purchase materials in bulk and convert them into finished labels, as well as direct customers like beverage companies and pharmaceutical manufacturers who use the materials in their packaging operations. The Solutions Group employs both product sales and technology licensing models. Traditional revenue comes from selling brand embellishments, tags, and labels to apparel manufacturers and retailers. However, the higher-margin Intelligent Labels business generates revenue through the sale of RFID-enabled labels at premium pricing, typically 10-20 times more expensive than traditional labels. Major customers include global retailers like Kroger, apparel brands, and logistics companies who pay for both the physical labels and the embedded technology. Several factors significantly impact the company's margins. Raw material costs, particularly petroleum-based adhesives and paper, directly affect profitability, with the company typically passing through cost increases via pricing adjustments with a lag. Volume leverage is crucial, as the company's manufacturing operations have high fixed costs, making volume fluctuations particularly impactful to margins. The shift toward high-value categories like Intelligent Labels, which now represent almost half the portfolio, has been driving margin expansion as these products command significantly higher prices than traditional materials. Economic cycles substantially influence demand, particularly in the Materials Group where label demand correlates with consumer goods production and retail activity. Currency fluctuations affect international operations, while competitive dynamics in traditional labeling markets pressure pricing. However, the company's increasing focus on technology-enabled solutions like RFID provides some insulation from commodity-like pricing pressure, as these products offer clear value propositions that justify premium pricing.

Competitive moat

Avery Dennison's competitive moat is moderately strong but varies significantly across its business segments. The company's strongest defensive position lies in its Intelligent Labels platform, where it maintains technological leadership and scale advantages in RFID labeling solutions. In the Intelligent Labels segment, Avery Dennison benefits from several protective factors. The company has invested heavily in RFID technology and manufacturing capabilities, creating barriers for competitors who would need substantial capital investment to match its scale. Its partnerships with major retailers like Kroger for food labeling and established relationships in apparel provide switching costs, as customers integrate these systems deeply into their operations. The network effects become stronger as more retailers adopt RFID technology, creating ecosystem benefits that favor the market leader. However, the company's moat in traditional materials and labeling is more limited. These markets are relatively mature with multiple competitors offering similar products. While Avery Dennison has brand recognition and distribution advantages, the underlying products are somewhat commoditized, leading to pricing pressure and margin compression over time. The company's scale provides some cost advantages, but these are not insurmountable for well-capitalized competitors. The primary competitive threats come from several directions. Technology disruption poses the most significant long-term risk, particularly if alternative tracking technologies (like computer vision or other IoT solutions) prove superior to RFID for inventory management. Large technology companies like Amazon or Google could potentially develop competing solutions leveraging their software capabilities and retail relationships. In traditional materials, regional competitors with lower cost structures continue to pressure pricing, while private label manufacturers serve price-sensitive customers. The company's moat is strengthening in high-value categories but remains vulnerable in traditional materials businesses. Success depends heavily on continued innovation in intelligent labeling and successful expansion into new verticals like food and logistics, where the company can establish first-mover advantages before competitors catch up.

Risks & safety

Avery Dennison presents a moderate margin of safety with manageable financial risks but some valuation concerns at current levels. **Financial Stability:** - **Cash Position**: $329 million in cash and short-term investments with $730 million annual free cash flow generation provides adequate liquidity - **Debt Management**: Debt-to-equity ratio of 1.36 is elevated but manageable, with strong cash flow covering interest obligations comfortably - **Working Capital**: Current ratio of 1.08 indicates tight but adequate short-term liquidity management - **Cash Flow**: Strong operating cash flow of $939 million annually with consistent free cash flow generation supports dividend payments and growth investments **Valuation Metrics:** - **P/E Ratio**: 21.5x trailing earnings appears reasonable for a technology-enabled industrial company with growth prospects - **EV/EBITDA**: 13.0x suggests fair valuation relative to industrial peers - **Price-to-Book**: 6.5x is elevated, reflecting premium for technology assets and growth prospects - **Graham Number**: Current price significantly exceeds conservative valuation metrics **Other Considerations:** - **Cyclical Risk**: Materials business exposed to economic downturns affecting customer demand - **Raw Material Exposure**: Petroleum-based input costs create margin volatility - **Technology Transition Risk**: Heavy investment in RFID technology requires continued adoption success

Recent development

Over the past few years, Avery Dennison has executed a significant strategic transformation, shifting from a traditional materials company toward a technology-enabled solutions provider with emphasis on intelligent labeling systems. The company's most significant development has been the rapid expansion of its Intelligent Labels platform, which has grown from a niche apparel application to a multi-industry solution targeting $1 billion in revenue. The platform achieved mid-teens growth rates consistently, with particular success expanding beyond traditional apparel into logistics, food service, and general retail applications. A major milestone was the strategic collaboration with Kroger to implement RFID technology across 2,800 stores' bakery departments, representing the company's largest food retail deployment and demonstrating the technology's viability beyond apparel. Organizationally, the company restructured its segments in 2022, combining Label and Graphic Materials with Industrial and Healthcare Materials into the unified Materials Group, while renaming RBIS to the Solutions Group to better reflect its broader technology focus. This reorganization supports the strategic shift toward higher-value, technology-enabled products that now represent almost half of the company's portfolio. The company has also pursued targeted acquisitions to strengthen its capabilities, including the purchase of Silver Crystal Group to enhance its external embellishments platform and continued investment in the Vestcom digital shelf labeling business. The Vestcom platform positions Avery Dennison for the transition from traditional paper shelf labels to digital displays in retail environments. Operationally, management has demonstrated agility in managing economic uncertainties, implementing cost reduction measures and restructuring initiatives while maintaining investment in high-growth areas. The company has also prepared for potential supply chain disruptions, including developing strategies to manage potential tariff impacts by leveraging its global manufacturing network to support customer sourcing adjustments. Recent quarters have shown the company successfully balancing growth investments with margin expansion, achieving 130 basis points of EBITDA margin improvement in 2024 while continuing to invest in innovation and capacity expansion for intelligent labeling applications.

AVY company profile · for informational purposes only — not investment advice.

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