AZZ (NYSE:AZZ) Shares Gap Down - What's Next?

Key Points

• AZZ shares gapped down pre-market, opening at $133.79 after a prior close of $138.71 and last trading around $133.58 on a volume of 5,748 shares.
• Analysts are split (four Buy, four Hold) with a MarketBeat consensus of "Moderate Buy" and a consensus price target of $127, which is below the recent share price.
• The board authorized a $100 million share repurchase (about 2.7% of shares) and AZZ pays a quarterly dividend of $0.20 per share (annualized $0.80, yield ~0.6%).

AZZ Inc. (NYSE:AZZ - Get Free Report)'s stock price gapped down prior to trading on Thursday . The stock had previously closed at $138.71, but opened at $133.79. AZZ shares last traded at $133.5790, with a volume of 5,748 shares.

Analyst Upgrades and Downgrades

AZZ has been the subject of a number of recent research reports. Evercore reissued an "outperform" rating and issued a $137.00 price objective on shares of AZZ in a research note on Wednesday, March 4th. Weiss Ratings reissued a "buy (b)" rating on shares of AZZ in a research note on Monday, December 29th. Noble Financial reissued an "outperform" rating on shares of AZZ in a research note on Tuesday, February 17th. Robert W. Baird set a $125.00 price objective on shares of AZZ in a research note on Friday, January 9th. Finally, Wall Street Zen raised shares of AZZ from a "hold" rating to a "buy" rating in a research note on Saturday, January 10th. Four investment analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company's stock. According to MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $127.00.

AZZ Stock Down 0.7%

The business's fifty day moving average is $130.11 and its two-hundred day moving average is $116.04. The company has a market cap of $3.97 billion, a P/E ratio of 12.51 and a beta of 1.15. The company has a debt-to-equity ratio of 0.41, a quick ratio of 1.21 and a current ratio of 1.66.

AZZ Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, May 14th. Investors of record on Thursday, April 23rd will be issued a dividend of $0.20 per share. The ex-dividend date is Thursday, April 23rd. This represents a $0.80 dividend on an annualized basis and a yield of 0.6%. AZZ's dividend payout ratio (DPR) is presently 7.52%.

AZZ announced that its Board of Directors has authorized a share repurchase plan on Friday, January 30th that authorizes the company to buyback $100.00 million in shares. This buyback authorization authorizes the industrial products company to reacquire up to 2.7% of its stock through open market purchases. Stock buyback plans are generally a sign that the company's board of directors believes its stock is undervalued.

Insider Transactions at AZZ

In related news, CEO Thomas E. Ferguson sold 25,000 shares of AZZ stock in a transaction dated Tuesday, February 3rd. The shares were sold at an average price of $127.29, for a total transaction of $3,182,250.00. Following the completion of the sale, the chief executive officer owned 158,182 shares in the company, valued at $20,134,986.78. This trade represents a 13.65% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, insider Tara D. Mackey sold 2,923 shares of AZZ stock in a transaction dated Wednesday, February 11th. The shares were sold at an average price of $136.00, for a total transaction of $397,528.00. Following the sale, the insider owned 22,373 shares of the company's stock, valued at $3,042,728. The trade was a 11.56% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 30,713 shares of company stock valued at $3,933,104 in the last quarter. 1.77% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On AZZ

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Principal Financial Group Inc. increased its holdings in AZZ by 9.7% during the third quarter. Principal Financial Group Inc. now owns 162,812 shares of the industrial products company's stock valued at $17,768,000 after buying an additional 14,430 shares during the period. AlphaQuest LLC bought a new position in AZZ in the third quarter worth approximately $1,032,000. Robeco Schweiz AG purchased a new stake in AZZ during the third quarter worth $4,365,000. Assenagon Asset Management S.A. bought a new stake in AZZ during the 3rd quarter valued at $1,671,000. Finally, Capital International Investors boosted its position in AZZ by 8.7% during the 3rd quarter. Capital International Investors now owns 1,961,247 shares of the industrial products company's stock valued at $214,031,000 after acquiring an additional 157,529 shares in the last quarter. Institutional investors own 90.93% of the company's stock.

AZZ Company Profile

AZZ Inc, incorporated in 1956 and headquartered in Fort Worth, Texas, is a leading provider of galvanizing and metal finishing solutions alongside electrical equipment and services. The company supports a diverse range of industries—such as energy, infrastructure, heavy equipment and general industrial markets—by delivering corrosion protection and high-performance electrical solutions designed for demanding environments.

AZZ operates two primary business segments. The Global Coatings & Services segment offers hot-dip galvanizing, metal finishing, painting, powder coating and related value-added services to steel fabricators and original equipment manufacturers.

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