Masco (NYSE:MAS) Shares Gap Down – Time to Sell?

Masco Corporation (NYSE:MAS)’s stock price gapped down prior to trading on Wednesday . The stock had previously closed at $81.61, but opened at $75.82. Masco shares last traded at $72.1140, with a volume of 1,222,420 shares traded.

Key Masco News

Here are the key news stories impacting Masco this week:

• Positive Sentiment: Masco reported second-quarter adjusted EPS of $1.64, well above the $1.32 consensus estimate and up from $1.30 a year earlier. Operating profit increased 14% to $470 million, while the company returned $454 million to shareholders through dividends and share repurchases. Masco Slides as 2Q Sales Fall, Tariff Pressures Overshadow Higher Profit
• Positive Sentiment: The company raised its fiscal 2026 adjusted EPS outlook to $4.40-$4.60 from $4.10-$4.30, partly reflecting an approximately $85 million net benefit from tariff refunds. The new range is above the roughly $4.27 analyst consensus. Masco raises 2026 EPS outlook
• Neutral Sentiment: Truist lowered its price target to $85 but retained a Buy rating, indicating continued long-term upside potential. Barclays reduced its target to $79 and shifted to Equal Weight, while Evercore cut its rating from Outperform to In-Line with a $78 target. Masco Analysts Slash Their Forecasts After Q2 Results
• Negative Sentiment: Second-quarter revenue fell 2.9% year over year to $1.99 billion, missing the $2.08 billion consensus estimate. Weaker North American volumes and a soft housing and home-improvement environment raised concerns about underlying demand, while tariff pressures overshadowed the profit improvement. Masco’s Q2 Earnings Beat on Tariff Refunds, Sales Miss
• Negative Sentiment: The earnings-related sales miss prompted analysts to lower forecasts and contributed to the stock’s decline, as investors appeared more concerned about organic growth and the sustainability of tariff-related benefits than the quarterly EPS beat.

Analyst Upgrades and Downgrades

Several research firms have recently commented on MAS. Royal Bank Of Canada upped their price objective on shares of Masco from $67.00 to $72.00 and gave the company a “sector perform” rating in a report on Thursday, April 23rd. BMO Capital Markets reduced their target price on shares of Masco from $77.00 to $75.00 and set a “market perform” rating for the company in a report on Monday, April 20th. UBS Group decreased their target price on shares of Masco from $97.00 to $94.00 and set a “buy” rating for the company in a research report on Thursday. Weiss Ratings raised shares of Masco from a “hold (c+)” rating to a “buy (b-)” rating in a report on Tuesday, June 23rd. Finally, Evercore lowered shares of Masco from an “outperform” rating to an “in-line” rating and set a $78.00 price target on the stock. in a report on Thursday. One equities research analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating, ten have issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, Masco has a consensus rating of “Hold” and an average target price of $79.93.

Masco Stock Performance

The firm’s 50 day moving average price is $75.29 and its 200-day moving average price is $70.35. The company has a debt-to-equity ratio of 109.07, a quick ratio of 1.11 and a current ratio of 1.86. The firm has a market capitalization of $14.58 billion, a PE ratio of 16.61, a price-to-earnings-growth ratio of 1.69 and a beta of 1.29.

Masco (NYSE:MAS) last announced its quarterly earnings results on Wednesday, July 29th. The construction company reported $1.64 earnings per share for the quarter, beating the consensus estimate of $1.32 by $0.32. The firm had revenue of $1.99 billion during the quarter, compared to analyst estimates of $2.08 billion. Masco had a return on equity of 2,379.08% and a net margin of 11.61%.Masco’s revenue for the quarter was down 2.9% compared to the same quarter last year. During the same quarter in the previous year, the business earned $1.30 EPS. Masco has set its FY 2026 guidance at 4.400-4.600 EPS. On average, research analysts expect that Masco Corporation will post 4.5 EPS for the current year.

Masco Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Monday, June 8th. Stockholders of record on Friday, May 22nd were paid a dividend of $0.32 per share. This represents a $1.28 annualized dividend and a dividend yield of 1.8%. The ex-dividend date of this dividend was Friday, May 22nd. Masco’s dividend payout ratio is presently 29.43%.

Masco declared that its Board of Directors has authorized a stock buyback program on Thursday, May 7th that allows the company to buyback $300.00 million in shares. This buyback authorization allows the construction company to repurchase up to 2.1% of its shares through open market purchases. Shares buyback programs are generally an indication that the company’s board of directors believes its stock is undervalued.

Institutional Investors Weigh In On Masco

Institutional investors have recently added to or reduced their stakes in the stock. Boston Trust Walden Corp grew its position in shares of Masco by 37.7% in the first quarter. Boston Trust Walden Corp now owns 713,598 shares of the construction company’s stock valued at $43,080,000 after purchasing an additional 195,509 shares during the period. Cambiar Investors LLC raised its position in shares of Masco by 733.9% during the 4th quarter. Cambiar Investors LLC now owns 612,832 shares of the construction company’s stock worth $38,890,000 after purchasing an additional 539,339 shares during the last quarter. Balefire LLC purchased a new position in Masco in the 1st quarter valued at about $1,021,000. Oak Thistle LLC purchased a new position in Masco in the 4th quarter valued at about $2,123,000. Finally, Foster Victor Wealth Advisors LLC boosted its holdings in Masco by 3.8% in the 4th quarter. Foster Victor Wealth Advisors LLC now owns 233,239 shares of the construction company’s stock worth $16,436,000 after buying an additional 8,457 shares during the last quarter. Institutional investors and hedge funds own 93.91% of the company’s stock.

Masco Company Profile

Masco Corporation is a global leader in the design, manufacture and distribution of branded home improvement and building products. Founded in 1929 and headquartered in Livonia, Michigan, the company has evolved from a small door‐bell manufacturer into a diversified enterprise serving both residential and commercial markets. Over its history, Masco has grown through a combination of organic innovation and strategic acquisitions, building a portfolio of well-recognized brands.

The company’s product offerings are organized into two primary segments.