Armstrong World Industries Receives “Hold” Rating from Analysts
Armstrong World Industries, Inc. (NYSE:AWI) has been given a rating of “Hold” by nine brokerages, according to Bloomberg Ratings. Among the analysts covering the stock, one has rated it as a sell, four have given it a hold rating, and four have issued a buy rating for the company. The average target price for the next 12 months, based on reports from analysts in the past year, is $84.13.
In recent months, there have been changes in the ownership of Armstrong World Industries by several large investors. Eagle Bay Advisors LLC acquired a new stake in the company during the first quarter, worth approximately $29,000. CWM LLC increased its holdings by 68.7% in the second quarter and now owns 410 shares valued at $30,000. Covestor Ltd also raised its holdings in Armstrong World Industries by 334.2% in the same quarter, owning 495 shares valued at $36,000 after purchasing an additional 381 shares. Furthermore, Point72 Hong Kong Ltd purchased a new position valued at around $38,000 in the second quarter and Acadian Asset Management LLC purchased a new position worth approximately $79,000.
It is important to note that hedge funds and other institutional investors currently own 99.73% of Armstrong World Industries’ stock.
On Thursday, August 17th , Armstrong World Industries announced its quarterly dividend payment schedule. Investors recorded on Thursday, August 3rd will receive a dividend of $0.254 per share. This equates to an annualized dividend of $1.02 per share with a yield of 1.33%. The ex-dividend date occurred on Wednesday, August 2nd.
Armstrong World Industries’ dividend payout ratio stands at 21.70%.
For more detailed information about AWI, please refer to our latest stock report.
As of the referenced date, August 17, 2023, financial markets are experiencing a relatively stable period with Armstrong World Industries receiving mixed evaluations from analysts. The company’s stock has been assessed as “Hold” by the majority of brokerages. Nonetheless, it remains important for individuals and institutions to conduct thorough research and analysis before making any investment decisions.
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Mixed Opinions Surround Armstrong World Industries’ Future Prospects
In recent months, Armstrong World Industries (AWI) has become the subject of much discussion among analysts. TheStreet recently upgraded AWI’s rating from a “c+” to a “b-,” indicating a positive shift in sentiment towards the company. Meanwhile, Bank of America decreased their price target for AWI shares from $90.00 to $87.00 but maintained a “buy” rating. Loop Capital also expressed cautious optimism by raising their target price for AWI from $75.00 to $84.00 and assigning it a “hold” rating.
UBS Group, on the other hand, was less optimistic about the company’s prospects and increased their price objective for AWI from $69.00 to $75.00 while maintaining a “sell” rating. Jefferies Financial Group echoed this sentiment by increasing their price target to $73.00 and giving AWI a “hold” rating.
Despite these mixed opinions, AWI opened at $76.34 on Thursday, suggesting that investors remain somewhat perplexed about the company’s future trajectory. With a fifty-day moving average of $73.94 and a 200-day moving average of $72.17, the stock has seen relatively stable performance in recent months.
As of August 17, 2023, Armstrong World Industries boasts a market capitalization of $3.41 billion and exhibits several key financial ratios worth considering. These include a price-to-earnings (P/E) ratio of 16.24 and a price-to-earnings-growth (PEG) ratio of 1.85 – both reflective of investor sentiment towards the company’s expected future growth potential.
Additionally, with a beta value of 1.14, AWI is deemed to have moderate volatility compared to the broader market as indicated by this measure’s benchmark value being 1.
Regarding its financial position, Armstrong World Industries carries a debt-to-equity ratio of 1.16, which may draw concern from some investors. However, the company’s quick ratio of 1.43 and current ratio of 2.05 highlight its ability to meet short-term obligations comfortably.
Taking a closer look at AWI’s recent earnings report, the company delivered better than expected results for the second quarter ending on July 25, 2023. With earnings per share (EPS) of $1.38, AWI surpassed analysts’ consensus estimates by $0.07.
Although revenue for the quarter amounted to $325.40 million – slightly below expectations of $335.43 million – Armstrong World Industries still achieved a year-over-year growth rate of 1.4%. This performance is indicative of the company’s efforts to adapt to market conditions and capitalize on growth opportunities within the construction industry.
AWI’s net margin of 16.90% highlights its ability to generate profits relative to revenue, while a return on equity (ROE) of 41.52% demonstrates management’s proficiency in utilizing shareholders’ investments effectively.
Looking ahead, sell-side analysts project that Armstrong World Industries will achieve an EPS of $4.92 for the current fiscal year, aiding investors in assessing their long-term prospects adequately.
In conclusion, Armstrong World Industries has garnered considerable attention from analysts in recent times due to varying opinions about its future potential. Sporting mixed ratings and fluctuating price targets amidst uncertain market conditions, AWI is leaving investors somewhat perplexed about its true worth.
Despite this ambiguity, AWI’s stable stock performance and positive earnings results suggest that it is navigating challenges and adapting well within the construction industry. As such, it may be advisable for investors to exercise caution and consider multiple perspectives before making any investment decisions related to Armstrong World Industries moving forward.