Williams-Sonoma Inc. (WSM) Downgraded by Zacks Investment Research to “Sell”
Williams-Sonoma Inc. (NYSE:WSM) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a note issued to investors on Tuesday.
According to Zacks, “Williams-Sonoma’s third-quarter fiscal 2016 adjusted earnings beat the Zacks Consensus Estimate by 2.6%. Earnings also increased 2.6% on a year-over-year basis. Net sales rose 1.1% year over year on double-digit revenue growth at West Elm, its newer businesses and international company owned businesses. However, comparable brand revenues have been sluggish for several quarters owing to soft retail environment. All the brands, except for West Elm, reported soft comparable brand revenues. Williams-Sonoma has even lowered the high end of fiscal 2016 earnings guidance. Though the company expects its growth initiatives to drive revenue, we await better visibility “
A number of other analysts have also recently commented on WSM. Vetr cut shares of Williams-Sonoma from a “hold” rating to a “sell” rating and set a $52.53 price target on the stock. in a research report on Tuesday, November 22nd. Nomura reaffirmed a “buy” rating and set a $65.00 price target on shares of Williams-Sonoma in a research report on Monday, November 21st. SunTrust Banks Inc. reaffirmed a “buy” rating on shares of Williams-Sonoma in a research report on Saturday, November 19th. Barclays PLC set a $40.00 price target on shares of Williams-Sonoma and gave the company a “sell” rating in a research report on Friday, November 18th. Finally, Telsey Advisory Group cut their price target on shares of Williams-Sonoma from $63.00 to $61.00 and set an “outperform” rating on the stock in a research report on Friday, November 18th. Five equities research analysts have rated the stock with a sell rating, thirteen have given a hold rating and seven have issued a buy rating to the company’s stock. Williams-Sonoma presently has an average rating of “Hold” and an average price target of $57.16.
Williams-Sonoma (NYSE:WSM) traded up 0.05% during mid-day trading on Tuesday, hitting $54.66. The company had a trading volume of 627,133 shares. The firm has a market capitalization of $4.81 billion, a PE ratio of 16.26 and a beta of 0.84. The company’s 50 day moving average price is $49.41 and its 200-day moving average price is $51.45. Williams-Sonoma has a 12-month low of $45.96 and a 12-month high of $64.57.
Williams-Sonoma (NYSE:WSM) last issued its quarterly earnings data on Thursday, November 17th. The company reported $0.78 earnings per share for the quarter, topping the consensus estimate of $0.77 by $0.01. Williams-Sonoma had a net margin of 5.93% and a return on equity of 26.59%. The company had revenue of $1.25 million for the quarter, compared to analysts’ expectations of $1.26 billion. During the same quarter in the previous year, the firm posted $0.77 earnings per share. Williams-Sonoma’s revenue for the quarter was up 1.1% on a year-over-year basis. On average, analysts forecast that Williams-Sonoma will post $3.46 EPS for the current fiscal year.
The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, November 23rd. Investors of record on Thursday, October 27th were issued a $0.37 dividend. This represents a $1.48 annualized dividend and a yield of 2.71%. The ex-dividend date was Tuesday, October 25th. Williams-Sonoma’s dividend payout ratio (DPR) is presently 44.18%.
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In other news, insider James W. Jr. Brett sold 16,355 shares of the firm’s stock in a transaction on Tuesday, November 22nd. The shares were sold at an average price of $54.49, for a total transaction of $891,183.95. Following the sale, the insider now owns 24,978 shares in the company, valued at approximately $1,361,051.22. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Also, insider Janet Hayes sold 15,027 shares of Williams-Sonoma stock in a transaction on Friday, September 23rd. The stock was sold at an average price of $49.74, for a total transaction of $747,442.98. Following the sale, the insider now directly owns 32,776 shares in the company, valued at approximately $1,630,278.24. The disclosure for this sale can be found here. 2.20% of the stock is currently owned by corporate insiders.
A number of large investors have recently made changes to their positions in the company. Metropolitan Life Insurance Co. NY boosted its stake in shares of Williams-Sonoma by 1.8% in the first quarter. Metropolitan Life Insurance Co. NY now owns 79,372 shares of the company’s stock valued at $4,345,000 after buying an additional 1,415 shares during the period. Arizona State Retirement System boosted its stake in shares of Williams-Sonoma by 1.7% in the first quarter. Arizona State Retirement System now owns 42,392 shares of the company’s stock valued at $2,321,000 after buying an additional 700 shares during the period. Royal Bank of Canada boosted its stake in shares of Williams-Sonoma by 5.1% in the first quarter. Royal Bank of Canada now owns 248,787 shares of the company’s stock valued at $13,618,000 after buying an additional 12,096 shares during the period. BNP Paribas Arbitrage SA boosted its stake in shares of Williams-Sonoma by 1,520.6% in the second quarter. BNP Paribas Arbitrage SA now owns 37,500 shares of the company’s stock valued at $1,955,000 after buying an additional 35,186 shares during the period. Finally, NEXT Financial Group Inc boosted its stake in shares of Williams-Sonoma by 63.2% in the second quarter. NEXT Financial Group Inc now owns 2,840 shares of the company’s stock valued at $148,000 after buying an additional 1,100 shares during the period. 99.98% of the stock is currently owned by institutional investors.
Williams-Sonoma, Inc is a multi-channel specialty retailer of products for the home. The Company operates retail stores in the United States, Canada, Puerto Rico, Australia and the United Kingdom. It operates through two segments: e-commerce and retail. The e-commerce segment has various merchandising strategies, such as Williams-Sonoma, Pottery Barn, Pottery Barn Kids, West Elm, PBteen, Williams-Sonoma Home, Rejuvenation and Mark and Graham, which sell its products through the Company’s e-commerce Websites and direct-mail catalogs.
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