Zacks Investment Research downgraded shares of Stanley Black & Decker, Inc. (NYSE:SWK) from a buy rating to a hold rating in a research note published on Monday, July 31st.
According to Zacks, “Over the last three months, shares of Stanley Black & Decker outperformed the industry it belongs to. In second-quarter 2017, the company's earnings and sales beat their respective estimates by 2.6% and 1.9%. Impressed with its results and anticipating benefits from higher organic revenue growth, operational excellence and acquired assets, the company raised its earnings forecast to $7.18-$7.38 per share from $7.08-$7.28. In the long term, we believe the company has solid growth potential, backed by the strategy of shifting its business portfolio toward favored growth markets through organic and inorganic means. However, in the near term, the company is exposed to headwinds like increasing expenses, huge debt level and active competition in all businesses. For 2017, the company expects commodity inflation and forex headwinds to negatively impact earnings by $0.50-$0.55 per share.”
A number of other research analysts also recently commented on the stock. FBR & Co reaffirmed an outperform rating on shares of Stanley Black & Decker in a research report on Tuesday, July 11th. MKM Partners initiated coverage on shares of Stanley Black & Decker in a research report on Friday, July 7th. They set a buy rating and a $166.00 price objective on the stock. Imperial Capital boosted their price objective on shares of Stanley Black & Decker from $125.00 to $148.00 and gave the company an in-line rating in a research report on Tuesday, May 9th. UBS AG reaffirmed a buy rating and set a $160.00 price objective (up from $150.00) on shares of Stanley Black & Decker in a research report on Tuesday, July 25th. Finally, Wolfe Research initiated coverage on shares of Stanley Black & Decker in a research report on Tuesday, July 11th. They set an outperform rating and a $160.00 price objective on the stock. One investment analyst has rated the stock with a sell rating, four have assigned a hold rating and eleven have issued a buy rating to the company’s stock. The company presently has a consensus rating of Buy and a consensus target price of $154.00.
Stanley Black & Decker (NYSE SWK) opened at 139.15 on Monday. The company has a market cap of $21.31 billion, a PE ratio of 17.82 and a beta of 1.10. The company has a 50-day moving average price of $142.81 and a 200 day moving average price of $135.07. Stanley Black & Decker has a 52 week low of $111.89 and a 52 week high of $148.32.
Stanley Black & Decker (NYSE:SWK) last released its earnings results on Monday, July 24th. The industrial products company reported $2.01 earnings per share for the quarter, topping the consensus estimate of $1.96 by $0.05. The business had revenue of $3.23 billion for the quarter, compared to the consensus estimate of $3.18 billion. Stanley Black & Decker had a net margin of 9.92% and a return on equity of 15.36%. The firm’s quarterly revenue was up 10.1% compared to the same quarter last year. During the same period last year, the firm posted $1.84 earnings per share. On average, equities research analysts forecast that Stanley Black & Decker will post $7.30 EPS for the current fiscal year.
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The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 19th. Stockholders of record on Friday, September 1st will be paid a $0.63 dividend. This represents a $2.52 dividend on an annualized basis and a dividend yield of 1.81%. This is a boost from Stanley Black & Decker’s previous quarterly dividend of $0.58. The ex-dividend date of this dividend is Wednesday, August 30th. Stanley Black & Decker’s payout ratio is presently 29.74%.
In other news, SVP Jaime A. Ramirez sold 10,440 shares of the business’s stock in a transaction on Friday, June 9th. The shares were sold at an average price of $139.56, for a total value of $1,457,006.40. Following the completion of the sale, the senior vice president now directly owns 41,541 shares in the company, valued at $5,797,461.96. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. 1.15% of the stock is currently owned by insiders.
Institutional investors have recently made changes to their positions in the company. Vanguard Group Inc. raised its position in shares of Stanley Black & Decker by 2.6% in the second quarter. Vanguard Group Inc. now owns 11,396,761 shares of the industrial products company’s stock worth $1,603,865,000 after buying an additional 287,124 shares during the period. BlackRock Inc. raised its position in shares of Stanley Black & Decker by 1,670.7% in the first quarter. BlackRock Inc. now owns 10,447,937 shares of the industrial products company’s stock worth $1,388,216,000 after buying an additional 9,857,885 shares during the period. State Street Corp raised its position in shares of Stanley Black & Decker by 3.2% in the first quarter. State Street Corp now owns 7,828,768 shares of the industrial products company’s stock worth $1,040,211,000 after buying an additional 244,854 shares during the period. Boston Partners raised its position in shares of Stanley Black & Decker by 9.7% in the first quarter. Boston Partners now owns 3,714,012 shares of the industrial products company’s stock worth $493,481,000 after buying an additional 329,259 shares during the period. Finally, Massachusetts Financial Services Co. MA raised its stake in shares of Stanley Black & Decker by 0.4% in the first quarter. Massachusetts Financial Services Co. MA now owns 3,619,158 shares of the industrial products company’s stock valued at $480,878,000 after buying an additional 15,721 shares during the period. 84.10% of the stock is currently owned by institutional investors and hedge funds.
About Stanley Black & Decker
Stanley Black & Decker, Inc is a global provider of hand tools, power tools and related accessories, mechanical access solutions, such as automatic doors and commercial locking systems, electronic security and monitoring systems, healthcare solutions, engineered fastening systems, and products and services for various industrial applications.
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