UBS Group Reiterates "Neutral" Rating for Armstrong World Industries (NYSE:AWI)

Key Points

• UBS Group analysts raised their price target for Armstrong World Industries from $158 to $178, indicating a potential downside from the current stock price despite maintaining a "neutral" rating.
• The company reported a strong earnings performance with $2.09 EPS for the last quarter, surpassing estimates and achieving a 16.3% year-over-year revenue growth.
• Institutional investors hold a significant majority, with 98.93% of Armstrong World Industries' stock owned by them, indicating strong confidence in the company's long-term prospects.

Armstrong World Industries (NYSE:AWI - Get Free Report)'s stock had its "neutral" rating reissued by analysts at UBS Group in a research note issued on Wednesday, MarketBeat reports. They currently have a $178.00 price objective on the construction company's stock, up from their previous price objective of $158.00. UBS Group's target price would indicate a potential downside of 5.49% from the company's previous close.

Several other equities research analysts have also commented on the company. Wall Street Zen upgraded Armstrong World Industries from a "hold" rating to a "buy" rating in a research note on Saturday, July 26th. Evercore ISI upped their price target on Armstrong World Industries from $157.00 to $182.00 and gave the stock an "in-line" rating in a research note on Wednesday. Bank of America upped their price target on Armstrong World Industries from $162.00 to $170.00 and gave the stock a "buy" rating in a research note on Thursday, May 15th. Loop Capital dropped their price target on Armstrong World Industries from $163.00 to $158.00 and set a "hold" rating for the company in a research note on Wednesday, April 30th. Finally, JPMorgan Chase & Co. initiated coverage on Armstrong World Industries in a research note on Tuesday, June 24th. They set an "overweight" rating and a $200.00 price target for the company. Four investment analysts have rated the stock with a hold rating and five have assigned a buy rating to the company. According to data from MarketBeat.com, Armstrong World Industries presently has an average rating of "Moderate Buy" and a consensus target price of $177.13.

Armstrong World Industries Trading Up 0.1%

Armstrong World Industries stock traded up $0.17 during trading on Wednesday, hitting $188.34. The company's stock had a trading volume of 515,067 shares, compared to its average volume of 379,878. The stock has a market capitalization of $8.15 billion, a price-to-earnings ratio of 27.86, a P/E/G ratio of 2.07 and a beta of 1.43. The stock's fifty day moving average is $162.54 and its 200 day moving average is $151.69. Armstrong World Industries has a 1-year low of $117.92 and a 1-year high of $191.74. The company has a debt-to-equity ratio of 0.59, a quick ratio of 1.10 and a current ratio of 1.61.

Armstrong World Industries (NYSE:AWI - Get Free Report) last announced its quarterly earnings results on Tuesday, July 29th. The construction company reported $2.09 EPS for the quarter, topping the consensus estimate of $1.75 by $0.34. The company had revenue of $424.60 million during the quarter, compared to analyst estimates of $404.05 million. Armstrong World Industries had a return on equity of 39.80% and a net margin of 18.95%. The firm's revenue was up 16.3% on a year-over-year basis. During the same period in the prior year, the firm posted $1.62 earnings per share. As a group, equities research analysts predict that Armstrong World Industries will post 6.18 EPS for the current year.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of the business. Kayne Anderson Rudnick Investment Management LLC boosted its holdings in Armstrong World Industries by 0.7% in the first quarter. Kayne Anderson Rudnick Investment Management LLC now owns 1,338,833 shares of the construction company's stock valued at $188,615,000 after purchasing an additional 8,762 shares during the last quarter. Burgundy Asset Management Ltd. boosted its holdings in Armstrong World Industries by 7.0% in the first quarter. Burgundy Asset Management Ltd. now owns 1,282,996 shares of the construction company's stock valued at $180,748,000 after purchasing an additional 84,195 shares during the last quarter. Geode Capital Management LLC boosted its holdings in Armstrong World Industries by 4.2% in the fourth quarter. Geode Capital Management LLC now owns 887,358 shares of the construction company's stock valued at $125,444,000 after purchasing an additional 35,738 shares during the last quarter. Invesco Ltd. boosted its holdings in Armstrong World Industries by 34.0% in the first quarter. Invesco Ltd. now owns 680,622 shares of the construction company's stock valued at $95,886,000 after purchasing an additional 172,779 shares during the last quarter. Finally, Adage Capital Partners GP L.L.C. boosted its holdings in Armstrong World Industries by 140.4% in the fourth quarter. Adage Capital Partners GP L.L.C. now owns 666,000 shares of the construction company's stock valued at $94,126,000 after purchasing an additional 389,000 shares during the last quarter. Hedge funds and other institutional investors own 98.93% of the company's stock.

About Armstrong World Industries

Armstrong World Industries, Inc, together with its subsidiaries, engages in the design, manufacture, and sale of ceiling and wall solutions in the Americas. It operates through Mineral Fiber and Architectural Specialties segments. The company offers mineral fiber, fiberglass wool, metal, wood, felt, wood fiber, and glass-reinforced-gypsum; ceiling component products, such as ceiling perimeters and trims, as well as grid products that support drywall ceiling systems; ceilings, walls, and facades for use in commercial settings; and manufactures ceiling suspension system (grid) products.