Armstrong World Industries (NYSE:AWI) Receives Buy Rating from DA Davidson

Key Points

• DA Davidson reaffirmed its Buy rating on Armstrong World Industries and set a $215 price target, implying approximately 24% upside from the prior close. The analyst consensus remains “Moderate Buy,” with an average target of $213.25.
• Armstrong reported quarterly earnings of $2.36 per share, exceeding estimates of $2.25, while revenue rose 11.2% year over year to $472 million. The company guided to fiscal 2026 earnings of $8.30–$8.50 per share.
• The board authorized an $800 million share-repurchase program, allowing buybacks of up to 12.3% of outstanding shares. Institutional investors own approximately 98.93% of the stock.

Armstrong World Industries (NYSE:AWI - Get Free Report)'s stock had its "buy" rating restated by equities research analysts at DA Davidson in a research report issued to clients and investors on Tuesday, Benzinga reports. They currently have a $215.00 target price on the construction company's stock. DA Davidson's price target would suggest a potential upside of 24.04% from the stock's previous close.

A number of other research analysts have also recently issued reports on AWI. Jefferies Financial Group reissued a "hold" rating and set a $190.00 price objective on shares of Armstrong World Industries in a report on Wednesday, July 29th. UBS Group reissued a "neutral" rating and issued a $203.00 price objective on shares of Armstrong World Industries in a research note on Wednesday, July 29th. Finally, Weiss Ratings cut Armstrong World Industries from a "buy (b-)" rating to a "hold (c+)" rating in a report on Tuesday, August 25th. One investment analyst has rated the stock with a Strong Buy rating, five have given a Buy rating and four have issued a Hold rating to the company's stock. According to data from MarketBeat.com, Armstrong World Industries has an average rating of "Moderate Buy" and a consensus price target of $213.25.

Armstrong World Industries Stock Down 1.0%

Shares of AWI stock opened at $173.33 on Tuesday. Armstrong World Industries has a one year low of $150.28 and a one year high of $206.08. The company has a debt-to-equity ratio of 0.58, a current ratio of 1.52 and a quick ratio of 1.06. The stock has a fifty day moving average price of $168.62 and a 200 day moving average price of $168.36. The stock has a market cap of $7.32 billion, a P/E ratio of 23.74, a price-to-earnings-growth ratio of 1.70 and a beta of 1.16.

Armstrong World Industries (NYSE:AWI - Get Free Report) last issued its earnings results on Tuesday, July 28th. The construction company reported $2.36 earnings per share for the quarter, beating the consensus estimate of $2.25 by $0.11. Armstrong World Industries had a net margin of 18.60% and a return on equity of 37.35%. The business had revenue of $472.00 million for the quarter, compared to analyst estimates of $461.67 million. During the same period in the previous year, the business earned $2.09 EPS. The firm's revenue was up 11.2% on a year-over-year basis. Armstrong World Industries has set its FY 2026 guidance at 8.300-8.500 EPS. Analysts predict that Armstrong World Industries will post 8.39 earnings per share for the current year.

Armstrong World Industries declared that its Board of Directors has initiated a stock repurchase plan on Tuesday, July 21st that allows the company to repurchase $800.00 million in outstanding shares. This repurchase authorization allows the construction company to buy up to 12.3% of its shares through open market purchases. Shares repurchase plans are often a sign that the company's management believes its shares are undervalued.

Hedge Funds Weigh In On Armstrong World Industries

A number of hedge funds and other institutional investors have recently bought and sold shares of AWI. Larson Financial Group LLC boosted its position in shares of Armstrong World Industries by 77.0% in the 4th quarter. Larson Financial Group LLC now owns 131 shares of the construction company's stock worth $25,000 after purchasing an additional 57 shares during the last quarter. Eurizon Capital SGR S.p.A. acquired a new stake in shares of Armstrong World Industries in the 4th quarter valued at approximately $27,000. Cullen Frost Bankers Inc. grew its holdings in Armstrong World Industries by 124.1% during the fourth quarter. Cullen Frost Bankers Inc. now owns 177 shares of the construction company's stock valued at $34,000 after purchasing an additional 98 shares during the period. CIBC Private Wealth Group LLC increased its stake in Armstrong World Industries by 426.5% in the third quarter. CIBC Private Wealth Group LLC now owns 179 shares of the construction company's stock valued at $35,000 after purchasing an additional 145 shares in the last quarter. Finally, Western Wealth Management LLC acquired a new stake in Armstrong World Industries in the first quarter worth $38,000. 98.93% of the stock is owned by institutional investors.

Armstrong World Industries Company Profile

Armstrong World Industries, Inc is a leading global manufacturer of commercial ceiling and wall solutions. The company offers a diverse portfolio of acoustical, decorative and specialty ceiling systems designed to enhance interior environments in offices, healthcare facilities, schools, retail outlets and other non-residential settings. Through its focus on performance, aesthetics and sustainability, Armstrong World Industries addresses both functional and design requirements for architects, contractors and building owners.

Armstrong's product range includes mineral fiber, fiberglass, wood wool, metal and stone wool ceiling panels, as well as suspension and grid systems.

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