DA Davidson Initiates Coverage on WESCO International (NYSE:WCC)

Key Points

• DA Davidson initiated coverage on WESCO International with a Buy rating and a $440 price target, implying about 26% upside from the previous close.
• Other analysts have also been raising their views on WESCO, with several firms increasing price targets and the stock currently carrying an overall average Buy rating and $334.56 average target price.
• WESCO reported better-than-expected quarterly results, posting EPS of $3.37 on revenue of $6.08 billion, while insiders recently sold shares and institutional investors now own 93.75% of the company.

Investment analysts at DA Davidson started coverage on shares of WESCO International (NYSE:WCC - Get Free Report) in a research note issued to investors on Tuesday. The brokerage set a "buy" rating and a $440.00 price target on the technology company's stock. DA Davidson's price target suggests a potential upside of 26.40% from the stock's previous close.

WCC has been the topic of several other research reports. Royal Bank Of Canada upped their price objective on shares of WESCO International from $352.00 to $411.00 and gave the stock an "outperform" rating in a report on Friday, May 1st. Weiss Ratings upgraded shares of WESCO International from a "hold (c+)" rating to a "buy (b-)" rating in a report on Monday, May 4th. KeyCorp upped their price objective on shares of WESCO International from $340.00 to $415.00 and gave the stock an "overweight" rating in a report on Friday, May 1st. Stephens upped their price objective on shares of WESCO International from $275.00 to $350.00 and gave the stock an "equal weight" rating in a report on Monday, May 4th. Finally, Barclays upped their price objective on shares of WESCO International from $313.00 to $375.00 and gave the stock an "overweight" rating in a report on Monday, May 4th. One research analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating and one has assigned a Hold rating to the company. Based on data from MarketBeat, WESCO International presently has an average rating of "Buy" and an average target price of $334.56.

WESCO International Stock Performance

WCC opened at $348.09 on Tuesday. The company has a current ratio of 2.12, a quick ratio of 1.22 and a debt-to-equity ratio of 1.13. The company's fifty day moving average price is $337.50 and its two-hundred day moving average price is $297.03. WESCO International has a 1-year low of $171.36 and a 1-year high of $377.90. The company has a market cap of $16.96 billion, a price-to-earnings ratio of 24.74, a PEG ratio of 2.18 and a beta of 1.53.

WESCO International (NYSE:WCC - Get Free Report) last released its quarterly earnings data on Thursday, April 30th. The technology company reported $3.37 earnings per share for the quarter, topping the consensus estimate of $2.88 by $0.49. WESCO International had a net margin of 2.79% and a return on equity of 13.82%. The firm had revenue of $6.08 billion for the quarter, compared to the consensus estimate of $5.86 billion. During the same quarter in the prior year, the company posted $2.21 earnings per share. The business's revenue was up 13.8% on a year-over-year basis. WESCO International has set its FY 2026 guidance at 15.000-17.000 EPS. On average, analysts expect that WESCO International will post 15.9 EPS for the current fiscal year.

Insider Activity

In other WESCO International news, CEO John Engel sold 79,440 shares of the stock in a transaction dated Wednesday, May 6th. The shares were sold at an average price of $358.75, for a total transaction of $28,499,100.00. Following the completion of the transaction, the chief executive officer owned 478,946 shares in the company, valued at $171,821,877.50. This trade represents a 14.23% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, CFO David S. Schulz sold 31,951 shares of the stock in a transaction dated Wednesday, May 6th. The stock was sold at an average price of $360.44, for a total transaction of $11,516,418.44. Following the transaction, the chief financial officer owned 77,038 shares of the company's stock, valued at $27,767,576.72. This represents a 29.32% decrease in their position. The SEC filing for this sale provides additional information. Over the last three months, insiders have sold 144,486 shares of company stock valued at $51,846,641. 2.60% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On WESCO International

A number of institutional investors and hedge funds have recently added to or reduced their stakes in WCC. Bank of New York Mellon Corp lifted its holdings in WESCO International by 10.3% during the 1st quarter. Bank of New York Mellon Corp now owns 907,473 shares of the technology company's stock worth $248,303,000 after purchasing an additional 84,905 shares in the last quarter. Geode Capital Management LLC lifted its holdings in WESCO International by 1.7% during the 4th quarter. Geode Capital Management LLC now owns 864,237 shares of the technology company's stock worth $211,473,000 after purchasing an additional 14,739 shares in the last quarter. Barrow Hanley Mewhinney & Strauss LLC lifted its holdings in WESCO International by 19.5% during the 3rd quarter. Barrow Hanley Mewhinney & Strauss LLC now owns 686,630 shares of the technology company's stock worth $145,222,000 after purchasing an additional 111,930 shares in the last quarter. Vaughan Nelson Investment Management L.P. boosted its position in shares of WESCO International by 8.4% in the first quarter. Vaughan Nelson Investment Management L.P. now owns 404,730 shares of the technology company's stock valued at $110,742,000 after acquiring an additional 31,210 shares during the period. Finally, Davis Selected Advisers boosted its position in shares of WESCO International by 24.6% in the fourth quarter. Davis Selected Advisers now owns 364,502 shares of the technology company's stock valued at $89,172,000 after acquiring an additional 71,932 shares during the period. Institutional investors own 93.75% of the company's stock.

WESCO International Company Profile

WESCO International, Inc is a leading global distributor of electrical, industrial, communications and utility products, serving a diverse customer base across maintenance, repair and operations (MRO), original equipment manufacturing (OEM) and construction markets. The company offers a comprehensive portfolio of products ranging from power distribution and automation solutions to data communications, security systems and lighting controls. Through an extensive branch network, WESCO provides critical components and value‐added services that help organizations streamline operations and improve reliability in their facilities and infrastructure.

In addition to its broad product offering, WESCO delivers advanced supply chain management and logistics solutions designed to optimize inventory levels, reduce downtime and lower overall procurement costs.

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