Armstrong World Industries (NYSE:AWI) Board Declares Stock Buyback Plan

Key Points

• Armstrong World Industries announced a new stock repurchase program, authorizing up to $800 million in buybacks, or about 12.3% of outstanding shares.
• The buyback signals management may believe the stock is undervalued, even as shares were down 0.6% to $151.35 in Tuesday trading and sit near their 52-week low.
• The company recently reported quarterly earnings of $1.69 per share, missing estimates, while revenue of $409.9 million slightly beat expectations; it also pays a quarterly dividend yielding about 0.9%.

Armstrong World Industries (NYSE:AWI - Get Free Report) announced that its Board of Directors has initiated a stock repurchase plan on Tuesday, July 21st, RTT News reports. The company plans to repurchase $800.00 million in outstanding shares. This repurchase authorization authorizes the construction company to purchase up to 12.3% of its stock through open market purchases. Stock repurchase plans are often an indication that the company's management believes its shares are undervalued.

Analyst Upgrades and Downgrades

A number of brokerages have issued reports on AWI. Weiss Ratings lowered shares of Armstrong World Industries from a "buy (b)" rating to a "buy (b-)" rating in a research note on Thursday, June 4th. Bank of America lowered their price objective on shares of Armstrong World Industries from $216.00 to $210.00 and set a "buy" rating for the company in a research note on Monday, April 20th. Evercore set a $200.00 price objective on shares of Armstrong World Industries in a report on Tuesday, April 28th. Finally, UBS Group cut their target price on shares of Armstrong World Industries from $200.00 to $195.00 and set a "neutral" rating on the stock in a research note on Wednesday, April 29th. One investment analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating and four have given a Hold rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average price target of $211.86.

Armstrong World Industries Stock Down 0.6%

AWI stock traded down $0.86 during mid-day trading on Tuesday, reaching $151.35. The company had a trading volume of 511,333 shares, compared to its average volume of 438,974. The firm has a fifty day simple moving average of $156.57 and a 200 day simple moving average of $171.58. The company has a debt-to-equity ratio of 0.56, a quick ratio of 1.04 and a current ratio of 1.54. The company has a market capitalization of $6.46 billion, a price-to-earnings ratio of 21.47, a price-to-earnings-growth ratio of 1.65 and a beta of 1.17. Armstrong World Industries has a fifty-two week low of $150.28 and a fifty-two week high of $206.08.

Armstrong World Industries (NYSE:AWI - Get Free Report) last released its earnings results on Tuesday, April 28th. The construction company reported $1.69 earnings per share for the quarter, missing analysts' consensus estimates of $1.82 by ($0.13). Armstrong World Industries had a return on equity of 36.71% and a net margin of 18.59%.The firm had revenue of $409.90 million for the quarter, compared to analysts' expectations of $409.46 million. During the same quarter in the previous year, the company posted $1.66 earnings per share. The firm's quarterly revenue was up 7.1% on a year-over-year basis. Armstrong World Industries has set its FY 2026 guidance at 8.150-8.450 EPS. Analysts forecast that Armstrong World Industries will post 8.31 earnings per share for the current fiscal year.

Armstrong World Industries Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Tuesday, May 26th. Investors of record on Monday, May 11th were given a $0.339 dividend. This represents a $1.36 dividend on an annualized basis and a dividend yield of 0.9%. The ex-dividend date of this dividend was Monday, May 11th. Armstrong World Industries's dividend payout ratio (DPR) is 19.29%.

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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