WD-40 Company (WDFC) - What Are Analysts Saying About This Stock?

Key Points

• Analysts remain moderately bullish: Six firms give WD-40 a consensus “Moderate Buy” rating, with two buys, one strong buy and three holds. The average 12-month price target is $305, well above the cited $212.71 share price.
• Revenue and outlook were solid: Fiscal fourth-quarter revenue rose 8.1% year over year to $176.8 million, beating estimates, while fiscal 2027 guidance for revenue of $715 million to $735 million and EPS of $6.40 to $6.70 broadly aligns with consensus.
• Profitability and valuation remain concerns: Quarterly EPS of $1.06 missed the $1.13 estimate and fell from $1.56 a year earlier, highlighting margin pressure. With shares trading at roughly 35 times earnings after a recent rise, near-term upside may be limited despite a $4.08 annual dividend and potential margin recovery.

Shares of WD-40 Company (NASDAQ:WDFC - Get Free Report) have earned a consensus recommendation of "Moderate Buy" from the six research firms that are currently covering the firm, Marketbeat reports. Three equities research analysts have rated the stock with a hold rating, two have issued a buy rating and one has assigned a strong buy rating to the company. The average 1-year price target among brokerages that have updated their coverage on the stock in the last year is $305.00.

WDFC has been the topic of several recent research reports. Zacks Research lowered WD-40 from a "strong-buy" rating to a "hold" rating in a research report on Friday, September 11th. Weiss Ratings cut shares of WD-40 from a "hold (c+)" rating to a "hold (c)" rating in a report on Friday, September 18th. DA Davidson boosted their price target on shares of WD-40 from $270.00 to $305.00 and gave the company a "buy" rating in a research report on Friday, July 10th. Finally, Jefferies Financial Group reissued a "hold" rating on shares of WD-40 in a research report on Friday, July 10th.

Trending Headlines about WD-40

Here are the key news stories impacting WD-40 this week:

• Positive Sentiment: Strong revenue performance: Fiscal fourth-quarter revenue rose 8.1% year over year to $176.8 million, exceeding analyst expectations of approximately $172.1 million. Full-year net sales increased 11% to $688 million, indicating continued demand for WD-40’s products. Earnings Flash
• Positive Sentiment: Fiscal 2027 outlook broadly supports expectations: Management guided for EPS of $6.40 to $6.70 and revenue of $715 million to $735 million. The midpoint of both ranges is close to consensus estimates, reducing concerns about a sharp slowdown. Fiscal 2027 Guidance
• Positive Sentiment: Potential margin recovery and shareholder returns: Management expects profitability to improve, while accelerated share repurchases and the transition of Japan to a direct-market model could support future earnings and capital returns. WD-40 Could Reward Patient Investors
• Neutral Sentiment: Valuation is under scrutiny: Following an approximately 8% recent rise, commentary questioned whether WDFC has moved above fair value, which could limit near-term upside even if operating results improve. Fair Value Analysis
• Negative Sentiment: Quarterly profit missed expectations: EPS was $1.06 versus the $1.13 consensus and fell from $1.56 a year earlier, reflecting near-term margin pressure. Q4 Earnings Miss

WD-40 Stock Performance

NASDAQ WDFC opened at $212.71 on Friday. WD-40 has a 12-month low of $175.38 and a 12-month high of $298.90. The company's 50 day moving average is $204.98 and its 200-day moving average is $216.84. The company has a quick ratio of 1.95, a current ratio of 2.57 and a debt-to-equity ratio of 0.31. The firm has a market cap of $2.85 billion, a P/E ratio of 34.99 and a beta of 0.27.

WD-40 (NASDAQ:WDFC - Get Free Report) last released its quarterly earnings results on Wednesday, October 21st. The specialty chemicals company reported $1.06 earnings per share for the quarter, missing the consensus estimate of $1.13 by ($0.07). WD-40 had a net margin of 11.97% and a return on equity of 30.84%. The business had revenue of $176.78 million during the quarter, compared to analysts' expectations of $172.07 million. During the same period in the previous year, the business earned $1.56 EPS. The business's revenue was up 8.1% on a year-over-year basis. Sell-side analysts predict that WD-40 will post 6.59 earnings per share for the current year.

WD-40 Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Friday, October 30th. Investors of record on Monday, October 19th will be given a dividend of $1.02 per share. This represents a $4.08 dividend on an annualized basis and a yield of 1.9%. The ex-dividend date of this dividend is Monday, October 19th. WD-40's dividend payout ratio (DPR) is 62.01%.

Insider Buying and Selling

In related news, insider Patricia Olsem sold 200 shares of the company's stock in a transaction dated Thursday, August 13th. The shares were sold at an average price of $234.72, for a total value of $46,944.00. Following the transaction, the insider owned 4,574 shares in the company, valued at $1,073,609.28. The trade was a 4.19% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Company insiders own 0.78% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of the business. BlackRock Inc. purchased a new position in WD-40 in the second quarter worth about $505,734,000. First Trust Advisors LP raised its stake in shares of WD-40 by 41.9% in the first quarter. First Trust Advisors LP now owns 411,312 shares of the specialty chemicals company's stock worth $83,883,000 after buying an additional 121,358 shares during the period. Dimensional Fund Advisors LP increased its holdings in WD-40 by 2.8% in the 1st quarter. Dimensional Fund Advisors LP now owns 294,277 shares of the specialty chemicals company's stock worth $60,015,000 after acquiring an additional 7,886 shares in the last quarter. Bank of New York Mellon Corp purchased a new stake in WD-40 in the 2nd quarter worth approximately $29,162,000. Finally, Principal Financial Group Inc. boosted its position in shares of WD-40 by 15.9% in the first quarter. Principal Financial Group Inc. now owns 74,995 shares of the specialty chemicals company's stock worth $15,294,000 after purchasing an additional 10,265 shares during the period. 91.52% of the stock is owned by institutional investors.

About WD-40

WD-40 Company develops and markets maintenance, cleaning and homecare products for consumers, professional tradespeople and industrial users. Its best-known product is WD-40 Multi-Use Product, a spray designed to displace moisture, protect metal, loosen rusted parts and lubricate equipment. The company also offers WD-40 Specialist products for specific maintenance applications and the 3-IN-ONE line of lubricants.

The company's homecare and cleaning portfolio has included brands such as X-14, 2000 Flushes and Carpet Fresh.

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