Armstrong World Industries, Inc. (NYSE:AWI) Given Average Recommendation of "Moderate Buy" by Brokerages

Key Points

• Analyst sentiment is moderately bullish: Ten brokerages give Armstrong World Industries an average “Moderate Buy” rating, with five buys, four holds and one strong buy. The average 12-month price target is $213.25 versus a recent share price of $170.83.
• Quarterly results exceeded expectations: The company reported $2.36 in earnings per share on $472 million in revenue, surpassing estimates and representing 11.2% year-over-year revenue growth. Management issued fiscal 2026 EPS guidance of $8.30–$8.50.
• Capital returns remain a focus: Armstrong announced an $800 million share-repurchase authorization, allowing it to buy back up to 12.3% of outstanding shares, and pays a quarterly dividend of $0.339 per share, yielding about 0.8%.

Shares of Armstrong World Industries, Inc. (NYSE:AWI - Get Free Report) have received an average recommendation of "Moderate Buy" from the ten ratings firms that are currently covering the stock, MarketBeat.com reports. Four equities research analysts have rated the stock with a hold rating, five have assigned a buy rating and one has assigned a strong buy rating to the company. The average 1-year price objective among brokerages that have updated their coverage on the stock in the last year is $213.25.

Several analysts recently weighed in on the company. UBS Group restated a "neutral" rating and set a $203.00 price target on shares of Armstrong World Industries in a report on Wednesday, July 29th. DA Davidson reaffirmed a "buy" rating and set a $215.00 price objective on shares of Armstrong World Industries in a research note on Tuesday, September 1st. Weiss Ratings cut shares of Armstrong World Industries from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Tuesday, August 25th. Jefferies Financial Group reissued a "hold" rating and issued a $190.00 target price on shares of Armstrong World Industries in a research note on Wednesday, July 29th. Finally, Truist Financial set a $230.00 price target on shares of Armstrong World Industries in a research note on Tuesday.

Armstrong World Industries Stock Down 1.4%

NYSE AWI opened at $170.83 on Wednesday. Armstrong World Industries has a 52 week low of $150.28 and a 52 week high of $206.08. The company has a quick ratio of 1.06, a current ratio of 1.52 and a debt-to-equity ratio of 0.58. The company has a market capitalization of $7.22 billion, a P/E ratio of 23.40, a price-to-earnings-growth ratio of 1.69 and a beta of 1.17. The stock's 50-day moving average price is $170.05 and its 200-day moving average price is $167.19.

Armstrong World Industries (NYSE:AWI - Get Free Report) last released its quarterly earnings results on Tuesday, July 28th. The construction company reported $2.36 EPS for the quarter, topping 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 company had revenue of $472.00 million during the quarter, compared to analyst estimates of $461.67 million. During the same quarter last year, the business posted $2.09 earnings per share. The firm's revenue was up 11.2% on a year-over-year basis. Armstrong World Industries has set its FY 2026 guidance at 8.300-8.500 EPS. On average, equities research analysts predict that Armstrong World Industries will post 8.39 earnings per share for the current year.

Armstrong World Industries Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Wednesday, August 19th. Shareholders of record on Wednesday, August 5th were given a dividend of $0.339 per share. This represents a $1.36 annualized dividend and a dividend yield of 0.8%. The ex-dividend date was Wednesday, August 5th. Armstrong World Industries's payout ratio is 18.63%.

Armstrong World Industries declared that its Board of Directors has initiated a stock buyback plan on Tuesday, July 21st that allows the company to buyback $800.00 million in shares. This buyback authorization allows the construction company to reacquire up to 12.3% of its stock through open market purchases. Stock buyback plans are usually a sign that the company's board of directors believes its shares are undervalued.

Institutional Investors Weigh In On Armstrong World Industries

Hedge funds and other institutional investors have recently modified their holdings of the business. Canada Pension Plan Investment Board acquired a new stake in Armstrong World Industries in the second quarter worth about $4,700,000. Assenagon Asset Management S.A. increased its holdings in shares of Armstrong World Industries by 88.4% during the second quarter. Assenagon Asset Management S.A. now owns 136,597 shares of the construction company's stock valued at $21,913,000 after acquiring an additional 64,077 shares in the last quarter. Bank of America Corp DE raised its position in shares of Armstrong World Industries by 5.2% in the 1st quarter. Bank of America Corp DE now owns 457,619 shares of the construction company's stock valued at $75,416,000 after purchasing an additional 22,477 shares during the last quarter. Danske Bank A S purchased a new position in shares of Armstrong World Industries in the 2nd quarter valued at approximately $531,000. Finally, Bessemer Group Inc. boosted its stake in Armstrong World Industries by 28.3% in the 1st quarter. Bessemer Group Inc. now owns 46,058 shares of the construction company's stock worth $7,591,000 after purchasing an additional 10,165 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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