DA Davidson Upgrades Armstrong World Industries (NYSE:AWI) to Strong-Buy

Key Points

• DA Davidson upgraded Armstrong World Industries to “strong buy,” while the broader analyst consensus remains “Moderate Buy” with an average price target of $213.25.
• Armstrong exceeded quarterly expectations, reporting $2.36 in earnings per share versus the $2.25 consensus and $472 million in revenue, up 11.2% year over year. Management guided to fiscal 2026 earnings of $8.30–$8.50 per share.
• The board authorized an $800 million share-repurchase program, allowing the company to buy back up to 12.3% of its outstanding shares; institutional investors own 98.93% of the stock.

Armstrong World Industries (NYSE:AWI - Get Free Report) was upgraded by research analysts at DA Davidson to a "strong-buy" rating in a research report issued on Monday,Zacks.com reports.

Other research analysts have also issued research reports about the company. Jefferies Financial Group restated a "hold" rating and issued a $190.00 price objective on shares of Armstrong World Industries in a report on Wednesday, July 29th. Evercore set a $200.00 target price on shares of Armstrong World Industries in a research report on Tuesday, April 28th. UBS Group reissued a "neutral" rating and issued a $203.00 price target on shares of Armstrong World Industries in a research note on Wednesday, July 29th. Finally, Weiss Ratings lowered shares of Armstrong World Industries from a "buy (b)" rating to a "buy (b-)" rating in a research report on Thursday, June 4th. Two analysts have rated the stock with a Strong Buy rating, five have assigned a Buy rating and three have assigned a Hold rating to the stock. According to data from MarketBeat, Armstrong World Industries presently has an average rating of "Moderate Buy" and a consensus price target of $213.25.

Armstrong World Industries Price Performance

NYSE:AWI opened at $179.97 on Monday. The stock has a 50 day moving average of $167.09 and a two-hundred day moving average of $169.01. Armstrong World Industries has a 12 month low of $150.28 and a 12 month high of $206.08. The firm has a market cap of $7.61 billion, a P/E ratio of 24.65, a price-to-earnings-growth ratio of 1.73 and a beta of 1.16. The company has a current ratio of 1.52, a quick ratio of 1.06 and a debt-to-equity ratio of 0.58.

Armstrong World Industries (NYSE:AWI - Get Free Report) last released 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 return on equity of 37.35% and a net margin of 18.60%.The business had revenue of $472.00 million for the quarter, compared to the consensus estimate of $461.67 million. During the same quarter last year, the business posted $2.09 earnings per share. The business's quarterly revenue was up 11.2% compared to the same quarter last year. Armstrong World Industries has set its FY 2026 guidance at 8.300-8.500 EPS. On average, analysts expect that Armstrong World Industries will post 8.39 earnings per share for the current fiscal year.

Armstrong World Industries declared that its board has authorized a share repurchase program on Tuesday, July 21st that allows the company to buyback $800.00 million in shares. This buyback authorization allows the construction company to purchase up to 12.3% of its stock through open market purchases. Stock buyback programs are often an indication that the company's management believes its stock is undervalued.

Institutional Trading of Armstrong World Industries

Several institutional investors and hedge funds have recently bought and sold shares of the stock. California State Teachers Retirement System increased its position in shares of Armstrong World Industries by 16,662.2% during the second quarter. California State Teachers Retirement System now owns 8,625,142 shares of the construction company's stock valued at $1,383,645,000 after acquiring an additional 8,573,686 shares during the last quarter. BlackRock Inc. purchased a new position in shares of Armstrong World Industries during the 2nd quarter worth approximately $827,239,000. Capital International Investors increased its holdings in Armstrong World Industries by 1.0% in the 4th quarter. Capital International Investors now owns 2,321,993 shares of the construction company's stock valued at $443,736,000 after purchasing an additional 23,133 shares during the last quarter. Bank of Montreal Can raised its position in Armstrong World Industries by 18,679.7% in the fourth quarter. Bank of Montreal Can now owns 1,279,086 shares of the construction company's stock valued at $244,433,000 after purchasing an additional 1,272,275 shares during the period. Finally, Geode Capital Management LLC lifted its stake in Armstrong World Industries by 6.5% during the fourth quarter. Geode Capital Management LLC now owns 1,015,154 shares of the construction company's stock worth $194,027,000 after purchasing an additional 61,647 shares in the last quarter. 98.93% of the stock is currently owned by hedge funds and other 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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