Williams-Sonoma (NYSE:WSM) Shares Down 2.1% on Analyst Downgrade

Williams-Sonoma, Inc. (NYSE:WSM)’s stock price dropped 2.1% on Wednesday after Evercore ISI lowered their price target on the stock from $315.00 to $300.00. Evercore ISI currently has an in-line rating on the stock. Williams-Sonoma traded as low as $279.18 and last traded at $282.55. Approximately 1,231,111 shares traded hands during mid-day trading, an increase of 45% from the average daily volume of 849,937 shares. The stock had previously closed at $288.53.

WSM has been the topic of several other research reports. The Goldman Sachs Group raised Williams-Sonoma from a “sell” rating to a “neutral” rating and increased their target price for the company from $154.00 to $263.00 in a research note on Thursday, March 14th. Morgan Stanley raised Williams-Sonoma from an “underweight” rating to an “equal weight” rating and increased their target price for the company from $155.00 to $270.00 in a research note on Thursday, March 14th. Barclays increased their target price on Williams-Sonoma from $146.00 to $232.00 and gave the company an “underweight” rating in a research note on Friday, March 15th. Oppenheimer reissued a “market perform” rating on shares of Williams-Sonoma in a research note on Friday, March 15th. Finally, Needham & Company LLC restated a “hold” rating on shares of Williams-Sonoma in a report on Wednesday, April 3rd. Four research analysts have rated the stock with a sell rating, eleven have issued a hold rating and four have assigned a buy rating to the stock. According to data from MarketBeat, the company has a consensus rating of “Hold” and a consensus target price of $248.06.

Insider Buying and Selling

In related news, EVP Karalyn Smith sold 1,145 shares of the stock in a transaction dated Tuesday, March 19th. The stock was sold at an average price of $289.06, for a total transaction of $330,973.70. Following the completion of the transaction, the executive vice president now directly owns 6,966 shares in the company, valued at $2,013,591.96. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. In related news, CEO Marta Benson sold 2,184 shares of the stock in a transaction that occurred on Wednesday, March 27th. The stock was sold at an average price of $313.98, for a total transaction of $685,732.32. Following the completion of the transaction, the chief executive officer now directly owns 48,364 shares of the company’s stock, valued at $15,185,328.72. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, EVP Karalyn Smith sold 1,145 shares of the stock in a transaction that occurred on Tuesday, March 19th. The shares were sold at an average price of $289.06, for a total value of $330,973.70. Following the transaction, the executive vice president now directly owns 6,966 shares of the company’s stock, valued at $2,013,591.96. The disclosure for this sale can be found here. Over the last three months, insiders sold 41,145 shares of company stock worth $12,182,219. 1.60% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of WSM. Norges Bank acquired a new position in Williams-Sonoma during the fourth quarter valued at approximately $152,843,000. Holocene Advisors LP acquired a new position in Williams-Sonoma during the second quarter valued at approximately $56,497,000. Steadfast Capital Management LP acquired a new position in Williams-Sonoma during the first quarter valued at approximately $50,715,000. First Trust Advisors LP boosted its position in Williams-Sonoma by 24.1% during the first quarter. First Trust Advisors LP now owns 1,408,911 shares of the specialty retailer’s stock valued at $204,292,000 after purchasing an additional 273,424 shares during the last quarter. Finally, Renaissance Technologies LLC acquired a new position in Williams-Sonoma during the first quarter valued at approximately $29,782,000. 99.29% of the stock is owned by institutional investors and hedge funds.

Williams-Sonoma Price Performance

The firm has a 50-day moving average of $268.14 and a 200 day moving average of $212.37. The stock has a market capitalization of $17.93 billion, a price-to-earnings ratio of 19.20, a PEG ratio of 2.37 and a beta of 1.70.

Williams-Sonoma (NYSE:WSM) last released its quarterly earnings data on Wednesday, March 13th. The specialty retailer reported $5.44 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $5.06 by $0.38. Williams-Sonoma had a return on equity of 55.15% and a net margin of 12.25%. The company had revenue of $2.28 billion during the quarter, compared to analysts’ expectations of $2.22 billion. During the same period last year, the firm posted $5.50 earnings per share. The business’s revenue was down 7.1% on a year-over-year basis. On average, equities analysts forecast that Williams-Sonoma, Inc. will post 15.37 earnings per share for the current year.

Williams-Sonoma Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, May 24th. Stockholders of record on Friday, April 19th will be given a $1.13 dividend. This represents a $4.52 dividend on an annualized basis and a dividend yield of 1.62%. This is a boost from Williams-Sonoma’s previous quarterly dividend of $0.90. The ex-dividend date is Thursday, April 18th. Williams-Sonoma’s dividend payout ratio (DPR) is presently 24.71%.

About Williams-Sonoma

Williams-Sonoma, Inc operates as an omni-channel specialty retailer of various products for home. It offers cooking, dining, and entertaining products, such as cookware, tools, electrics, cutlery, tabletop and bar, outdoor, furniture, and a library of cookbooks under the Williams Sonoma Home brand, as well as home furnishings and decorative accessories under the Williams Sonoma lifestyle brand; and furniture, bedding, lighting, rugs, table essentials, and decorative accessories under the Pottery Barn brand.