Armstrong World Industries Inc. (NYSE:AWI) was downgraded by Zacks Investment Research from a “hold” rating to a “strong sell” rating in a note issued to investors on Tuesday.

According to Zacks, “Armstrong World’s third-quarter adjusted earnings surged 29% y-o-y and came in line with the Zacks Consensus Estimate. Armstrong World expects full-year constant currency sales to be in the $1.24 billion to $1.27 billion range, adjusted EBITDA is now expected to range from $315 million to $325 million and adjusted earnings per share in the range of $2.20 to $2.30. Weakness in international markets, specifically, in the Middle East, impact of Brexit and increased charges related to the separation of flooring business remain concerns. In the Pacific Rim, commercial office markets in China continued to experience challenging conditions while India markets were impacted by tight project financing. The underlying fundamentals for repair and remodel (R&R) activity remain uneven as demand is projected to be limited. This will likely result in choppy R&R activity. Moreover, emerging markets will be impacted by lower commodity prices.”

Other analysts have also issued research reports about the company. Evercore ISI started coverage on Armstrong World Industries in a research report on Monday, November 14th. They set a “buy” rating and a $46.00 price objective on the stock. Zelman & Associates lowered Armstrong World Industries from a “buy” rating to a “hold” rating in a research report on Tuesday, November 1st. KeyCorp raised Armstrong World Industries from a “sector weight” rating to an “overweight” rating and set a $50.00 price objective on the stock in a research report on Friday, August 5th. RBC Capital Markets reaffirmed a “sector perform” rating and set a $47.00 price objective (up previously from $45.00) on shares of Armstrong World Industries in a research report on Monday, August 1st. Finally, Royal Bank Of Canada upped their price objective on Armstrong World Industries from $45.00 to $47.00 and gave the stock a “sector perform” rating in a research report on Monday, August 1st. Four analysts have rated the stock with a sell rating, seven have given a hold rating and three have assigned a buy rating to the stock. Armstrong World Industries has a consensus rating of “Hold” and a consensus price target of $43.92.

Analyst Recommendations for Armstrong World Industries (NYSE:AWI)

Shares of Armstrong World Industries (NYSE:AWI) traded down 0.36% during trading on Tuesday, reaching $40.95. The company had a trading volume of 115,860 shares. The firm has a 50-day moving average of $39.72 and a 200 day moving average of $40.88. The firm has a market capitalization of $2.26 billion, a PE ratio of 36.08 and a beta of 1.37. Armstrong World Industries has a 1-year low of $35.92 and a 1-year high of $50.36.

Armstrong World Industries (NYSE:AWI) last announced its earnings results on Monday, October 31st. The company reported $0.76 earnings per share (EPS) for the quarter, meeting analysts’ consensus estimates of $0.76. The company had revenue of $334.90 million for the quarter, compared to analyst estimates of $343.50 million. Armstrong World Industries had a return on equity of 22.79% and a net margin of 3.55%. The firm’s quarterly revenue was down .3% compared to the same quarter last year. During the same quarter in the previous year, the company earned $0.80 earnings per share. Analysts expect that Armstrong World Industries will post $2.24 earnings per share for the current year.

In other news, Director Roy W. Templin purchased 2,670 shares of the business’s stock in a transaction that occurred on Wednesday, November 2nd. The stock was purchased at an average cost of $37.16 per share, with a total value of $99,217.20. Following the completion of the acquisition, the director now directly owns 4,816 shares of the company’s stock, valued at approximately $178,962.56. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Corporate insiders own 0.60% of the company’s stock.

A number of hedge funds and other institutional investors have recently bought and sold shares of AWI. Iridian Asset Management LLC CT purchased a new position in Armstrong World Industries during the second quarter valued at about $152,520,000. First Eagle Investment Management LLC purchased a new position in Armstrong World Industries during the second quarter valued at about $39,239,000. Advisory Research Inc. boosted its position in Armstrong World Industries by 89.7% in the second quarter. Advisory Research Inc. now owns 958,403 shares of the company’s stock valued at $37,522,000 after buying an additional 453,300 shares in the last quarter. Gotham Asset Management LLC purchased a new position in Armstrong World Industries during the third quarter valued at about $14,132,000. Finally, Principal Financial Group Inc. boosted its position in Armstrong World Industries by 13.9% in the second quarter. Principal Financial Group Inc. now owns 1,652,514 shares of the company’s stock valued at $64,696,000 after buying an additional 202,064 shares in the last quarter. 99.51% of the stock is owned by hedge funds and other institutional investors.

About Armstrong World Industries

Armstrong World Industries, Inc is a producer of flooring products and ceiling systems for use in the construction and renovation of residential, commercial and institutional buildings. The Company operates in four segments: Building Products, which produces suspended mineral fiber, soft fiber and metal ceiling systems for use in commercial, institutional and residential settings; Resilient Flooring, which designs, manufactures, sources and sells a range of floor coverings primarily for homes and commercial and institutional buildings; Wood Flooring segment, which designs, manufactures, sources and sells hardwood flooring products for use in new residential construction and renovation, with some commercial applications in stores, restaurants and high-end offices, and Unallocated Corporate.

5 Day Chart for NYSE:AWI

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