Stanley Black & Decker Inc. (NYSE:SWK) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report released on Friday.

According to Zacks, “Stanley Black & Decker has solid long-term growth potential, backed by its strategy of shifting its business portfolio toward favored growth markets. Recently, the company agreed to acquire Newell Tools, that will strengthen the company's tools business through deeper penetration into markets worldwide. For 2016, the company raised its earnings per share guidance to $6.30-$6.50 and organic revenue growth forecast to 4%. The revised forecast was driven by improved Tools & Storage business and benefits from cost and productivity actions, partially offset by higher currency headwinds, weak industrial activities and other incremental costs. Also, headwinds like increasing expenses, huge debt level and active competition in all businesses might limit the company's prospects in the near term. Over the last 60 days, the Zacks Consensus Estimate has increased for 2016 while decreased for 2017.”

A number of other equities research analysts have also commented on the company. Longbow Research lowered Stanley Black & Decker from a “buy” rating to a “neutral” rating in a research report on Monday, August 22nd. Argus reaffirmed a “hold” rating on shares of Stanley Black & Decker in a research report on Tuesday, July 26th. Zelman & Associates lowered Stanley Black & Decker from a “buy” rating to a “hold” rating in a research report on Monday, July 25th. Imperial Capital raised their price target on Stanley Black & Decker from $107.00 to $125.00 and gave the stock an “in-line” rating in a research report on Monday, July 25th. Finally, Credit Suisse Group AG reaffirmed a “hold” rating on shares of Stanley Black & Decker in a research report on Tuesday, June 28th. Ten investment analysts have rated the stock with a hold rating and three have issued a buy rating to the stock. Stanley Black & Decker currently has an average rating of “Hold” and an average target price of $117.45.

Analyst Recommendations for Stanley Black & Decker (NYSE:SWK)

Stanley Black & Decker (NYSE:SWK) traded up 0.89% during midday trading on Friday, reaching $121.91. The company had a trading volume of 307,801 shares. The company has a market cap of $18.34 billion, a PE ratio of 19.03 and a beta of 1.38. The company’s 50-day moving average is $122.08 and its 200 day moving average is $116.03. Stanley Black & Decker has a 52-week low of $88.72 and a 52-week high of $124.86.

Stanley Black & Decker (NYSE:SWK) last released its quarterly earnings results on Friday, July 22nd. The company reported $1.84 EPS for the quarter, topping the Zacks’ consensus estimate of $1.72 by $0.12. The company had revenue of $2.90 billion for the quarter, compared to analyst estimates of $2.90 billion. Stanley Black & Decker had a return on equity of 16.96% and a net margin of 8.47%. Stanley Black & Decker’s revenue was up 2.3% compared to the same quarter last year. During the same quarter last year, the firm posted $1.54 earnings per share. On average, equities research analysts forecast that Stanley Black & Decker will post $6.48 EPS for the current year.

The firm also recently announced a quarterly dividend, which was paid on Tuesday, September 20th. Stockholders of record on Friday, September 2nd were paid a dividend of $0.58 per share. This is an increase from Stanley Black & Decker’s previous quarterly dividend of $0.55. This represents a $2.32 annualized dividend and a dividend yield of 1.92%. The ex-dividend date of this dividend was Wednesday, August 31st. Stanley Black & Decker’s payout ratio is currently 36.19%.

In other news, CFO Donald Allan sold 30,371 shares of Stanley Black & Decker stock in a transaction that occurred on Wednesday, July 27th. The stock was sold at an average price of $122.50, for a total transaction of $3,720,447.50. Following the completion of the transaction, the chief financial officer now directly owns 115,225 shares in the company, valued at approximately $14,115,062.50. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider James J. Cannon sold 5,776 shares of Stanley Black & Decker stock in a transaction that occurred on Monday, August 1st. The stock was sold at an average price of $121.40, for a total value of $701,206.40. Following the transaction, the insider now owns 39,756 shares of the company’s stock, valued at $4,826,378.40. The disclosure for this sale can be found here. Insiders own 1.80% of the company’s stock.

Several hedge funds and other institutional investors have recently modified their holdings of SWK. Reilly Financial Advisors LLC increased its position in shares of Stanley Black & Decker by 500.0% in the second quarter. Reilly Financial Advisors LLC now owns 1,200 shares of the company’s stock valued at $133,000 after buying an additional 1,000 shares in the last quarter. Krilogy Financial LLC increased its position in shares of Stanley Black & Decker by 9.4% in the second quarter. Krilogy Financial LLC now owns 1,192 shares of the company’s stock valued at $133,000 after buying an additional 102 shares in the last quarter. Checchi Capital Advisers LLC increased its position in shares of Stanley Black & Decker by 3.3% in the second quarter. Checchi Capital Advisers LLC now owns 1,751 shares of the company’s stock valued at $195,000 after buying an additional 56 shares in the last quarter. Duncker Streett & Co. Inc. increased its position in shares of Stanley Black & Decker by 4.1% in the second quarter. Duncker Streett & Co. Inc. now owns 1,758 shares of the company’s stock valued at $196,000 after buying an additional 69 shares in the last quarter. Finally, Buckingham Asset Management LLC acquired a new position in shares of Stanley Black & Decker during the second quarter valued at approximately $200,000. Institutional investors own 83.96% of the company’s stock.

Stanley Black & Decker Company Profile

Stanley Black & Decker, Inc is a provider of hand tools, power tools and related accessories, mechanical access solutions (automatic doors and commercial locking systems), electronic security and monitoring systems, healthcare solutions, engineered fastening systems, and products and services for various industrial applications.

5 Day Chart for NYSE:SWK

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