CSW Industrials (NYSE:CSW) Downgraded by Wall Street Zen to Hold

Key Points

• Wall Street Zen downgraded CSW Industrials from “buy” to “hold.” Despite the downgrade, analysts maintain a “Moderate Buy” consensus with an average price target of $347.57.
• CSW Industrials reported strong quarterly results, with EPS of $3.84 beating estimates of $3.66 and revenue rising 33% year over year to $350.65 million.
• The stock opened at $288.16, while its valuation remained elevated at approximately 39.5 times earnings; CEO Joseph Armes also sold 1,500 shares under a pre-arranged Rule 10b5-1 trading plan.

CSW Industrials (NYSE:CSW - Get Free Report) was downgraded by investment analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a research report issued on Sunday, Wall Street Zen reports.

CSW has been the subject of several other reports. Truist Financial raised their target price on CSW Industrials from $313.00 to $332.00 and gave the company a "hold" rating in a research note on Monday, August 3rd. Zacks Research downgraded CSW Industrials from a "strong-buy" rating to a "hold" rating in a report on Monday, July 27th. JPMorgan Chase & Co. raised their price objective on CSW Industrials from $350.00 to $380.00 and gave the company an "overweight" rating in a research note on Friday, July 31st. Citigroup lifted their price objective on CSW Industrials from $304.00 to $340.00 and gave the stock a "neutral" rating in a report on Monday, August 3rd. Finally, Wells Fargo & Company lifted their price objective on CSW Industrials from $285.00 to $320.00 and gave the stock an "equal weight" rating in a report on Friday, July 31st. Two equities research analysts have rated the stock with a Strong Buy rating, one has given a Buy rating and six have issued a Hold rating to the stock. According to MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus target price of $347.57.

CSW Industrials Stock Down 1.0%

NYSE CSW opened at $288.16 on Friday. CSW Industrials has a 52 week low of $236.66 and a 52 week high of $355.48. The business's fifty day simple moving average is $306.84 and its 200-day simple moving average is $291.10. The company has a quick ratio of 1.36, a current ratio of 2.70 and a debt-to-equity ratio of 0.77. The firm has a market cap of $4.69 billion, a PE ratio of 39.53 and a beta of 0.81.

CSW Industrials (NYSE:CSW - Get Free Report) last issued its earnings results on Thursday, July 30th. The basic materials company reported $3.84 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $3.66 by $0.18. CSW Industrials had a return on equity of 17.41% and a net margin of 10.34%. The business had revenue of $350.65 million during the quarter. The company's quarterly revenue was up 33.0% on a year-over-year basis. As a group, equities analysts anticipate that CSW Industrials will post 12.53 earnings per share for the current year.

Insider Activity

In other CSW Industrials news, EVP Jeff Underwood sold 720 shares of the company's stock in a transaction dated Monday, August 10th. The shares were sold at an average price of $346.96, for a total value of $249,811.20. Following the completion of the transaction, the executive vice president owned 6,409 shares in the company, valued at approximately $2,223,666.64. This represents a 10.10% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CEO Joseph Armes sold 1,500 shares of the firm's stock in a transaction that occurred on Thursday, October 15th. The shares were sold at an average price of $287.04, for a total transaction of $430,560.00. Following the completion of the sale, the chief executive officer owned 64,083 shares in the company, valued at $18,394,384.32. The trade was a 2.29% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders sold 3,720 shares of company stock worth $1,114,741. 1.20% of the stock is currently owned by insiders.

Hedge Funds Weigh In On CSW Industrials

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. BlackRock Inc. bought a new stake in shares of CSW Industrials during the 2nd quarter worth $686,462,000. Wasatch Advisors LP lifted its stake in CSW Industrials by 31.1% in the 1st quarter. Wasatch Advisors LP now owns 873,659 shares of the basic materials company's stock worth $227,658,000 after acquiring an additional 207,186 shares in the last quarter. First Trust Advisors LP lifted its stake in CSW Industrials by 14.5% in the 1st quarter. First Trust Advisors LP now owns 437,462 shares of the basic materials company's stock worth $113,994,000 after acquiring an additional 55,288 shares in the last quarter. Dimensional Fund Advisors LP boosted its position in CSW Industrials by 0.8% during the 1st quarter. Dimensional Fund Advisors LP now owns 306,350 shares of the basic materials company's stock worth $79,830,000 after acquiring an additional 2,459 shares during the period. Finally, Congress Asset Management Co. boosted its position in CSW Industrials by 0.4% during the 3rd quarter. Congress Asset Management Co. now owns 301,580 shares of the basic materials company's stock worth $86,879,000 after acquiring an additional 1,074 shares during the period. 82.79% of the stock is owned by institutional investors.

Key Headlines Impacting CSW Industrials

Here are the key news stories impacting CSW Industrials this week:

• Positive Sentiment: Argus raised its price target to $335. The target increase suggests improving expectations for CSW Industrials, although it remains below the broader analyst consensus target of approximately $347.57. Argus raises target for CSW Industrials stock to USD 335.00
• Positive Sentiment: CSW Industrials maintained its quarterly dividend at $0.30 per share. The payment is scheduled for November 13 for shareholders of record on October 30. The annualized dividend is $1.20 per share, representing a modest 0.4% yield and signaling continued shareholder returns. CSW Industrials Declares Quarterly Dividend of $0.30 Per Share
• Neutral Sentiment: Recent operating results remain supportive. CSW Industrials previously reported quarterly EPS of $3.84, beating estimates of $3.66, while revenue increased 33% year over year to $350.65 million. However, the stock’s valuation remains elevated at roughly 39.5 times earnings.
• Negative Sentiment: CEO Joseph Armes sold 1,500 shares worth about $430,560. The sale reduced his direct ownership by 2.29% and may create near-term sentiment pressure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan, which makes it less indicative of a discretionary negative view on CSW Industrials. CSW Industrials CEO Joseph Armes Sells 1,500 Shares

About CSW Industrials

CSW Industrials, Inc is a diversified industrial products company headquartered in Dallas, Texas. The company develops, manufactures and sells products used in the maintenance, repair, construction and improvement of residential, commercial and industrial infrastructure.

CSW Industrials operates through three primary business segments: Contractor Solutions, Engineered Building Solutions and Specialized Reliability Solutions. Its product portfolio includes HVAC and refrigeration products, plumbing and electrical solutions, adhesives, sealants, coatings, fire- and smoke-protection products, roofing materials, building components and specialty products designed to support the reliability and performance of industrial equipment and infrastructure.

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