CSW Industrials (NYSE:CSW) Trading Down 5% - Should You Sell?

Key Points

• CSW Industrials shares fell about 5% to $291.80 on Wednesday, trading on very light volume (≈8,036 shares vs. a 152,836 average), after closing the prior day at $307.02.
• The company missed quarterly expectations (EPS $1.42 vs. $1.93 expected; revenue $232.99M vs. $249.36M), and analysts have a consensus rating of Hold with an average price target of $327.14 amid mixed reviews.
• Management and shareholder signals are mixed: CSW raised its quarterly dividend to $0.30 ($1.20 annualized), an insider director bought shares while the CEO sold some, and institutional ownership is high at about 82.8%.

CSW Industrials, Inc. (NYSE:CSW - Get Free Report)'s stock price was down 5% on Wednesday . The stock traded as low as $290.89 and last traded at $291.8010. Approximately 8,036 shares were traded during trading, a decline of 95% from the average daily volume of 152,836 shares. The stock had previously closed at $307.02.

Analyst Upgrades and Downgrades

A number of analysts have issued reports on the company. Wells Fargo & Company decreased their price target on CSW Industrials from $300.00 to $280.00 and set an "equal weight" rating on the stock in a research note on Monday, February 2nd. Robert W. Baird began coverage on CSW Industrials in a report on Tuesday, February 17th. They set an "outperform" rating and a $378.00 target price on the stock. Weiss Ratings restated a "hold (c+)" rating on shares of CSW Industrials in a report on Monday, December 29th. Zacks Research downgraded CSW Industrials from a "hold" rating to a "strong sell" rating in a report on Friday, February 6th. Finally, Truist Financial boosted their price objective on CSW Industrials from $271.00 to $292.00 and gave the company a "hold" rating in a research report on Monday, February 2nd. Two equities research analysts have rated the stock with a Strong Buy rating, one has issued a Buy rating, five have issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of "Hold" and an average price target of $327.14.

CSW Industrials Stock Down 8.0%

The stock has a market capitalization of $4.65 billion, a price-to-earnings ratio of 37.44 and a beta of 0.84. The company has a quick ratio of 0.97, a current ratio of 2.36 and a debt-to-equity ratio of 0.72. The firm has a 50-day moving average of $280.73 and a two-hundred day moving average of $278.71.

CSW Industrials (NYSE:CSW - Get Free Report) last issued its earnings results on Thursday, January 29th. The basic materials company reported $1.42 EPS for the quarter, missing analysts' consensus estimates of $1.93 by ($0.51). CSW Industrials had a net margin of 12.64% and a return on equity of 14.55%. The firm had revenue of $232.99 million during the quarter, compared to analysts' expectations of $249.36 million. As a group, sell-side analysts anticipate that CSW Industrials, Inc. will post 8.49 earnings per share for the current year.

CSW Industrials Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, May 8th. Investors of record on Friday, April 24th will be paid a dividend of $0.30 per share. This represents a $1.20 annualized dividend and a yield of 0.4%. The ex-dividend date is Friday, April 24th. This is a positive change from CSW Industrials's previous quarterly dividend of $0.27. CSW Industrials's dividend payout ratio is currently 14.32%.

Insiders Place Their Bets

In other news, Director Darron K. Ash acquired 300 shares of CSW Industrials stock in a transaction on Friday, March 13th. The stock was bought at an average price of $256.62 per share, for a total transaction of $76,986.00. Following the transaction, the director owned 1,155 shares of the company's stock, valued at $296,396.10. The trade was a 35.09% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CEO Joseph B. Armes sold 1,000 shares of the firm's stock in a transaction that occurred on Thursday, January 15th. The stock was sold at an average price of $328.64, for a total value of $328,640.00. Following the completion of the sale, the chief executive officer owned 62,526 shares of the company's stock, valued at $20,548,544.64. This represents a 1.57% decrease in their position. The SEC filing for this sale provides additional information. In the last quarter, insiders sold 2,507 shares of company stock worth $754,623. 1.30% of the stock is currently owned by company insiders.

Institutional Trading of CSW Industrials

Hedge funds have recently modified their holdings of the company. Rockefeller Capital Management L.P. acquired a new position in shares of CSW Industrials in the 4th quarter worth approximately $13,938,000. Montanaro Asset Management Ltd acquired a new position in shares of CSW Industrials in the 4th quarter worth approximately $13,561,000. Corient Private Wealth LLC acquired a new position in shares of CSW Industrials in the 4th quarter worth approximately $2,617,000. Pure Financial Advisors LLC acquired a new position in shares of CSW Industrials in the 4th quarter worth approximately $515,000. Finally, Anchor Investment Management LLC acquired a new position in shares of CSW Industrials in the 4th quarter worth approximately $333,000. Institutional investors own 82.79% of the company's stock.

About CSW Industrials

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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