Gabelli Funds LLC Lowers Stake in AZZ Inc. $AZZ

Key Points

• Gabelli Funds LLC cut its AZZ Inc. stake by 18.4% in the first quarter, selling 37,608 shares and leaving it with 167,238 shares worth about $20.9 million.
• Analyst sentiment remains mixed, with recent actions including one downgrade to Hold and several price-target increases; the stock currently carries a Moderate Buy consensus and an average target of $155.25.
• AZZ reported stronger-than-expected quarterly results, with EPS of $1.85 versus $1.80 expected and revenue of $448.53 million, while also raising its quarterly dividend to $0.24 per share.

Gabelli Funds LLC cut its holdings in shares of AZZ Inc. (NYSE:AZZ - Free Report) by 18.4% during the first quarter, according to its most recent filing with the Securities & Exchange Commission. The firm owned 167,238 shares of the industrial products company's stock after selling 37,608 shares during the period. Gabelli Funds LLC owned approximately 0.56% of AZZ worth $20,926,000 as of its most recent SEC filing.

Several other institutional investors and hedge funds have also recently modified their holdings of AZZ. Lido Advisors LLC raised its holdings in AZZ by 3.0% in the 4th quarter. Lido Advisors LLC now owns 2,633 shares of the industrial products company's stock worth $286,000 after purchasing an additional 77 shares during the period. Oregon Public Employees Retirement Fund grew its holdings in AZZ by 1.5% in the fourth quarter. Oregon Public Employees Retirement Fund now owns 6,882 shares of the industrial products company's stock valued at $738,000 after purchasing an additional 100 shares during the period. LPL Financial LLC grew its holdings in AZZ by 1.0% in the fourth quarter. LPL Financial LLC now owns 10,593 shares of the industrial products company's stock valued at $1,135,000 after purchasing an additional 101 shares during the period. Hantz Financial Services Inc. increased its position in shares of AZZ by 92.5% in the fourth quarter. Hantz Financial Services Inc. now owns 258 shares of the industrial products company's stock valued at $28,000 after buying an additional 124 shares in the last quarter. Finally, Fifth Third Bancorp increased its position in shares of AZZ by 55.9% in the fourth quarter. Fifth Third Bancorp now owns 382 shares of the industrial products company's stock valued at $41,000 after buying an additional 137 shares in the last quarter. Hedge funds and other institutional investors own 90.93% of the company's stock.

Analyst Ratings Changes

Several research analysts have recently weighed in on the company. Wall Street Zen downgraded AZZ from a "buy" rating to a "hold" rating in a research note on Sunday, July 12th. B. Riley Financial lifted their price target on shares of AZZ from $169.00 to $170.00 and gave the company a "buy" rating in a research note on Monday, July 13th. Robert W. Baird boosted their price target on shares of AZZ from $125.00 to $155.00 and gave the stock a "neutral" rating in a report on Friday, April 24th. Wells Fargo & Company upped their price objective on shares of AZZ from $138.00 to $144.00 and gave the stock an "equal weight" rating in a research report on Friday, July 10th. Finally, Weiss Ratings downgraded shares of AZZ from a "buy (b+)" rating to a "buy (b)" rating in a report on Thursday, July 9th. Four equities research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average price target of $155.25.

AZZ Price Performance

Shares of AZZ stock opened at $150.20 on Friday. The business has a 50 day simple moving average of $146.52 and a two-hundred day simple moving average of $136.25. AZZ Inc. has a 12 month low of $92.98 and a 12 month high of $162.20. The stock has a market capitalization of $4.51 billion, a P/E ratio of 22.90 and a beta of 1.11. The company has a debt-to-equity ratio of 0.35, a current ratio of 1.92 and a quick ratio of 1.39.

AZZ (NYSE:AZZ - Get Free Report) last released its earnings results on Wednesday, July 8th. The industrial products company reported $1.85 earnings per share for the quarter, beating the consensus estimate of $1.80 by $0.05. AZZ had a return on equity of 14.18% and a net margin of 11.83%.The business had revenue of $448.53 million for the quarter, compared to the consensus estimate of $434.58 million. During the same quarter last year, the business posted $1.78 earnings per share. The business's quarterly revenue was up 6.3% compared to the same quarter last year. AZZ has set its FY 2027 guidance at 6.750-7.150 EPS. As a group, analysts predict that AZZ Inc. will post 6.94 EPS for the current fiscal year.

AZZ Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, July 30th. Shareholders of record on Thursday, July 9th will be issued a $0.24 dividend. This represents a $0.96 dividend on an annualized basis and a yield of 0.6%. The ex-dividend date is Thursday, July 9th. This is an increase from AZZ's previous quarterly dividend of $0.20. AZZ's payout ratio is 14.63%.

About AZZ

AZZ Inc, incorporated in 1956 and headquartered in Fort Worth, Texas, is a leading provider of galvanizing and metal finishing solutions alongside electrical equipment and services. The company supports a diverse range of industries—such as energy, infrastructure, heavy equipment and general industrial markets—by delivering corrosion protection and high-performance electrical solutions designed for demanding environments.

AZZ operates two primary business segments. The Global Coatings & Services segment offers hot-dip galvanizing, metal finishing, painting, powder coating and related value-added services to steel fabricators and original equipment manufacturers.

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