Bernzott Capital Buys Another $3 Million of Silgan Stock Amid 20% Dip

What happened

According to a Securities and Exchange Commission (SEC) filing dated Feb. 3, 2026, Bernzott Capital Advisors bought 71,353 shares of Silgan Holdings (NYSE:SLGN) during the fourth quarter of 2025. The estimated transaction value was $2.90 million, calculated using the average quarterly closing price. The Silgan position’s quarter-end value increased by $2.53 million, reflecting both additional shares and price fluctuations.

What else to know

The buy lifted Silgan to 3.9% of Bernzott’s 13F reportable assets under management.

• Top holdings after the filing:
  • Vanguard Total World Stock ETF: $21.74 million (10.3% of AUM)
  • Colombus McKinnon Corp.: $9.33 million (4.4% of AUM)
  • Silgan: $8.21 million (3.9% of AUM)
  • TIC Solutions: $8.01 million (3.8% of AUM)
  • Vishay Intertechnology: $7.97 million (3.8% of AUM)

As of Feb. 2, 2026, Silgan shares were priced at $43.19, down 19.86% from the prior year, underperforming the S&P 500 by 35 percentage points.

Company overview

Company snapshot

• Silgan Holdings manufactures rigid packaging, including metal containers, plastic closures, and custom plastic containers for consumer goods, food, beverage, personal care, healthcare, and industrial applications.
• The company generates revenue primarily through the sale of packaging products across three segments: Dispensing and Specialty Closures, Metal Containers, and Custom Containers, leveraging a combination of direct sales, distributors, and online channels.
• Its main customers are consumer goods producers in North America, Europe, and internationally, serving end markets such as food, beverage, household, personal care, and healthcare.

Silgan Holdings is a leading global supplier of rigid packaging solutions with a diversified product portfolio and a strong presence in the consumer goods sector. The company’s scale and segment diversity support stable revenue streams and resilience across economic cycles. Strategic focus on innovation and customer relationships positions Silgan as a key partner for major consumer brands worldwide.

What this transaction means for investors

From 2006 to 2025, Silgan easily outpaced the S&P 500’s total returns, rising over 700% in that time. However, the stock has dropped by over 20% in the last year, and Bernzott appears to believe it presents a good “buy-the-dip” opportunity. A leader in the rigid packaging niche, Silgan has steadily grown through tuck-in acquisitions, typically adding roughly one new business a year.

However, 2025 was rough for Silgan as it faced rising costs and lower demand for its products slowed amid broader macroeconomic uncertainty, prompting it to reduce full-year guidance and sending its share downward. Now trading at just 12 times forward earnings -- and with an EV/EBITDA ratio of 9 -- Silgan doesn’t need double-digit sales growth to live up to its valuation.

As the company scoops up new adjacent businesses, like its recent Weener acquisition, which gives it access to the healthcare industry, Silgan should be poised to gradually recover and return to its old ways as broader cyclical conditions improve. Bernzott’s continued purchases of Silgan make perfect sense for the fund, which has now made the stock its third-largest holding. Growing its net income and dividend payments by 10% annually over the last five years -- with a below-market beta -- Silgan is a solid cornerstone holding for safety- and dividend-focused investors.

Josh Kohn-Lindquist has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Tic Solutions. The Motley Fool recommends MP Materials. The Motley Fool has a disclosure policy.