Wall Street Zen Downgrades Armstrong World Industries (NYSE:AWI) to Hold

Key Points

• Armstrong World Industries' stock rating has been downgraded by Wall Street Zen from "buy" to "hold", indicating a shift in analyst sentiment.
• Despite the downgrade, the company has strong recent earnings results, beating estimates with $2.09 EPS and a 16.3% annual revenue increase, projecting FY 2025 guidance at 7.150-7.300 EPS.
• The stock shows mixed ratings from analysts, with a consensus moderate buy rating and an average price target of $181.50 amidst varied expectations from different firms.

Armstrong World Industries (NYSE:AWI - Get Free Report) was downgraded by research analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a research report issued on Saturday.

Other analysts have also issued reports about the stock. JPMorgan Chase & Co. assumed coverage on shares of Armstrong World Industries in a research note on Tuesday, June 24th. They set an "overweight" rating and a $200.00 target price on the stock. Loop Capital set a $190.00 target price on shares of Armstrong World Industries and gave the stock a "hold" rating in a research note on Wednesday, July 30th. Evercore ISI upped their target price on shares of Armstrong World Industries from $157.00 to $182.00 and gave the stock an "in-line" rating in a research note on Wednesday, July 30th. Truist Financial upped their target price on shares of Armstrong World Industries from $195.00 to $230.00 and gave the stock a "buy" rating in a research note on Friday, September 12th. Finally, UBS Group restated a "neutral" rating and set a $178.00 target price (up from $158.00) on shares of Armstrong World Industries in a research note on Wednesday, July 30th. Four equities research analysts have rated the stock with a Buy rating and four have given a Hold rating to the stock. Based on data from MarketBeat.com, Armstrong World Industries has an average rating of "Moderate Buy" and an average target price of $181.50.

Armstrong World Industries Stock Up 0.6%

Shares of AWI traded up $1.15 during mid-day trading on Friday, hitting $197.24. 5,037 shares of the company's stock were exchanged, compared to its average volume of 325,218. The company has a market cap of $8.53 billion, a price-to-earnings ratio of 29.14, a P/E/G ratio of 2.16 and a beta of 1.46. Armstrong World Industries has a fifty-two week low of $122.37 and a fifty-two week high of $200.84. The company has a debt-to-equity ratio of 0.59, a quick ratio of 1.11 and a current ratio of 1.61. The stock's 50-day moving average is $188.51 and its 200-day moving average is $162.77.

Armstrong World Industries (NYSE:AWI - Get Free Report) last issued its quarterly earnings results on Tuesday, July 29th. The construction company reported $2.09 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.75 by $0.34. Armstrong World Industries had a net margin of 18.95% and a return on equity of 39.80%. The business had revenue of $424.60 million for the quarter, compared to analysts' expectations of $404.05 million. During the same quarter in the prior year, the company earned $1.62 earnings per share. The business's quarterly revenue was up 16.3% on a year-over-year basis. Armstrong World Industries has set its FY 2025 guidance at 7.150-7.300 EPS. On average, sell-side analysts anticipate that Armstrong World Industries will post 6.18 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Armstrong World Industries

Hedge funds and other institutional investors have recently bought and sold shares of the business. Twin Peaks Wealth Advisors LLC acquired a new stake in Armstrong World Industries in the second quarter valued at $32,000. Golden State Wealth Management LLC lifted its holdings in Armstrong World Industries by 100.0% in the first quarter. Golden State Wealth Management LLC now owns 280 shares of the construction company's stock valued at $39,000 after acquiring an additional 140 shares during the period. Headlands Technologies LLC acquired a new stake in Armstrong World Industries in the second quarter valued at $46,000. MassMutual Private Wealth & Trust FSB lifted its holdings in Armstrong World Industries by 652.3% in the first quarter. MassMutual Private Wealth & Trust FSB now owns 331 shares of the construction company's stock valued at $47,000 after acquiring an additional 287 shares during the period. Finally, MAI Capital Management purchased a new position in shares of Armstrong World Industries in the second quarter valued at $47,000. Institutional investors and hedge funds 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.