CSW Industrials (NYSE:CSW) Shares Down 7.9% - Here's What Happened

Key Points

• CSW Industrials shares fell 7.9% to about $275 during mid-day trading, bringing the company’s market capitalization to approximately $4.44 billion.
• Analyst sentiment remains generally positive but cautious: the consensus rating is “Moderate Buy” with an average price target of $330.43, while several firms maintain “hold” or equal-weight ratings.
• The company recently exceeded earnings expectations, reporting quarterly EPS of $3.14 versus a $2.34 estimate and 34% year-over-year revenue growth. CSW also declared a quarterly dividend of $0.30 per share, equivalent to a 0.4% yield.

Shares of CSW Industrials, Inc. (NYSE:CSW - Get Free Report) fell 7.9% during mid-day trading on Wednesday . The company traded as low as $271.12 and last traded at $275.2150. 144,713 shares were traded during trading, a decline of 2% from the average session volume of 148,401 shares. The stock had previously closed at $298.93.

Analyst Ratings Changes

A number of equities research analysts recently weighed in on the company. Citigroup lowered their price target on CSW Industrials from $307.00 to $304.00 and set a "neutral" rating on the stock in a report on Wednesday, May 27th. Weiss Ratings downgraded CSW Industrials from a "hold (c+)" rating to a "hold (c)" rating in a research report on Tuesday, July 14th. Truist Financial upped their target price on CSW Industrials from $300.00 to $313.00 and gave the company a "hold" rating in a report on Thursday, July 2nd. Zacks Research downgraded CSW Industrials from a "strong-buy" rating to a "hold" rating in a research note on Monday. Finally, Wells Fargo & Company increased their price objective on shares of CSW Industrials from $280.00 to $285.00 and gave the company an "equal weight" rating in a research note on Wednesday, May 27th. Two research analysts have rated the stock with a Strong Buy rating, one has assigned a Buy rating and six have assigned a Hold rating to the company's stock. According to MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average price target of $330.43.

CSW Industrials Stock Performance

The stock's 50-day moving average is $278.13 and its 200-day moving average is $283.61. The stock has a market cap of $4.44 billion, a price-to-earnings ratio of 40.51 and a beta of 0.84. The company has a debt-to-equity ratio of 0.80, a current ratio of 2.60 and a quick ratio of 1.23.

CSW Industrials (NYSE:CSW - Get Free Report) last released its earnings results on Tuesday, May 26th. The basic materials company reported $3.14 EPS for the quarter, topping the consensus estimate of $2.34 by $0.80. The firm had revenue of $308.96 million during the quarter. CSW Industrials had a net margin of 10.35% and a return on equity of 15.91%. The firm's quarterly revenue was up 34.0% on a year-over-year basis. Analysts anticipate that CSW Industrials, Inc. will post 12.52 EPS for the current fiscal year.

CSW Industrials Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, August 14th. Stockholders of record on Friday, July 31st will be given a $0.30 dividend. The ex-dividend date of this dividend is Friday, July 31st. This represents a $1.20 dividend on an annualized basis and a dividend yield of 0.4%. CSW Industrials's payout ratio is currently 17.96%.

Insider Buying and Selling at CSW Industrials

In other CSW Industrials news, SVP Luke Alverson sold 1,007 shares of the firm's stock in a transaction dated Friday, May 1st. The stock was sold at an average price of $289.57, for a total value of $291,596.99. Following the sale, the senior vice president directly owned 12,450 shares of the company's stock, valued at approximately $3,605,146.50. This trade represents a 7.48% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Joseph B. Armes sold 1,500 shares of CSW Industrials stock in a transaction dated Monday, June 15th. The shares were sold at an average price of $279.52, for a total value of $419,280.00. Following the completion of the sale, the chief executive officer owned 69,100 shares of the company's stock, valued at $19,314,832. This trade represents a 2.12% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 4,007 shares of company stock valued at $1,136,787 over the last quarter. Insiders own 1.20% of the company's stock.

Institutional Investors Weigh In On CSW Industrials

Hedge funds have recently modified their holdings of the stock. Handelsbanken Fonder AB increased its position in CSW Industrials by 14.8% during the second quarter. Handelsbanken Fonder AB now owns 5,589 shares of the basic materials company's stock worth $1,555,000 after purchasing an additional 720 shares during the last quarter. Pacer Advisors Inc. boosted its holdings in shares of CSW Industrials by 135.3% in the 1st quarter. Pacer Advisors Inc. now owns 819 shares of the basic materials company's stock valued at $213,000 after purchasing an additional 471 shares during the last quarter. Empowered Funds LLC boosted its holdings in shares of CSW Industrials by 25.2% in the 1st quarter. Empowered Funds LLC now owns 2,091 shares of the basic materials company's stock valued at $545,000 after purchasing an additional 421 shares during the last quarter. Glenmede Trust Co. NA boosted its holdings in shares of CSW Industrials by 9.7% in the 1st quarter. Glenmede Trust Co. NA now owns 6,382 shares of the basic materials company's stock valued at $1,663,000 after purchasing an additional 566 shares during the last quarter. Finally, Argent Capital Management LLC grew its stake in shares of CSW Industrials by 58.7% during the 1st quarter. Argent Capital Management LLC now owns 3,246 shares of the basic materials company's stock valued at $846,000 after buying an additional 1,200 shares during the period. 82.79% of the stock is owned by institutional investors and hedge funds.

CSW Industrials Company Profile

CSW Industrials, Inc is a diversified industrial manufacturer that develops and supplies specialty chemical products, performance materials and precision surface solutions. The company's offerings span a range of end markets including energy, industrial processing, converting and automotive, where its products serve critical functions in production efficiency, equipment maintenance and process enhancement.

In its chemical business, CSW Industrials produces solvent- and water-based formulations such as surfactants, corrosion inhibitors and custom blends used in oilfield exploration and production, metalworking, water treatment and other industrial applications.

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