Armstrong World Industries (NYSE:AWI) Share Price Crosses Above 50 Day Moving Average – Should You Sell?

Armstrong World Industries, Inc. (NYSE:AWI)’s stock price passed above its 50-day moving average during trading on Friday. The stock has a 50-day moving average of $166.29 and traded as high as $167.67. Armstrong World Industries shares last traded at $166.42, with a volume of 616,080 shares traded.

Wall Street Analysts Forecast Growth

A number of equities research analysts have issued reports on AWI shares. DA Davidson set a $200.00 price target on Armstrong World Industries in a research note on Wednesday. Truist Financial reduced their target price on shares of Armstrong World Industries from $230.00 to $210.00 and set a “buy” rating for the company in a report on Wednesday. The Goldman Sachs Group restated a “buy” rating and set a $225.00 price target on shares of Armstrong World Industries in a report on Wednesday. JPMorgan Chase & Co. lowered their price target on Armstrong World Industries from $220.00 to $200.00 and set an “overweight” rating for the company in a research report on Wednesday. Finally, UBS Group dropped their price objective on shares of Armstrong World Industries from $203.00 to $190.00 and set a “neutral” rating for the company in a research note on Wednesday. Seven investment analysts have rated the stock with a Buy rating and two have given a Hold rating to the company. According to data from MarketBeat.com, Armstrong World Industries currently has a consensus rating of “Moderate Buy” and a consensus target price of $203.12.

Armstrong World Industries Stock Up 0.3%

The business’s fifty day moving average is $166.29 and its two-hundred day moving average is $169.85. The company has a market cap of $6.96 billion, a P/E ratio of 22.22, a price-to-earnings-growth ratio of 1.64 and a beta of 1.16. The company has a debt-to-equity ratio of 0.55, a quick ratio of 1.06 and a current ratio of 1.45.

Armstrong World Industries (NYSE:AWI) last issued its earnings results on Tuesday, October 27th. The construction company reported $2.26 EPS for the quarter, missing analysts’ consensus estimates of $2.39 by ($0.13). The company had revenue of $475.80 million during the quarter, compared to the consensus estimate of $472.62 million. Armstrong World Industries had a return on equity of 38.06% and a net margin of 18.38%. Armstrong World Industries’s revenue was up 11.9% on a year-over-year basis. During the same quarter in the prior year, the company earned $2.05 earnings per share. Equities analysts predict that Armstrong World Industries, Inc. will post 8.32 EPS for the current year.

Armstrong World Industries Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, November 19th. Investors of record on Thursday, November 5th will be issued a $0.3730 dividend. The ex-dividend date is Thursday, November 5th. This is a positive change from Armstrong World Industries’s previous quarterly dividend of $0.3390. This represents a $1.49 dividend on an annualized basis and a dividend yield of 0.9%. Armstrong World Industries’s dividend payout ratio (DPR) is presently 18.16%.

Armstrong World Industries announced that its Board of Directors has initiated a share repurchase plan on Tuesday, July 21st that permits the company to repurchase $800 million in outstanding shares. This repurchase authorization permits the construction company to purchase up to 12.3% of its shares through open market purchases. Stock repurchase plans are generally a sign that the company’s board of directors believes its stock is undervalued.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of AWI. BlackRock Inc. bought a new stake in Armstrong World Industries during the 2nd quarter valued at $827,239,000. Bank of America Corp DE bought a new position in shares of Armstrong World Industries during the 2nd quarter worth $74,556,000. Bank of New York Mellon Corp bought a new position in shares of Armstrong World Industries during the 2nd quarter worth $43,412,000. Deutsche Bank AG bought a new position in shares of Armstrong World Industries during the 2nd quarter worth $35,298,000. Finally, Rice Hall James & Associates LLC purchased a new position in shares of Armstrong World Industries during the second quarter valued at $28,418,000. 98.93% of the stock is currently owned by hedge funds and other institutional investors.

About Armstrong World Industries

Armstrong World Industries, Inc is a building products company that designs and manufactures ceiling, wall and other architectural solutions. Its products are used in commercial, institutional and residential spaces to support acoustical performance, interior design, comfort and functionality.

The company’s offerings include mineral fiber, fiberglass, metal and wood ceilings; suspension systems; acoustical clouds and canopies; wall systems; partitions; and specialty architectural products.