Hsbc Holdings PLC Lowers Stake in Masco Corporation $MAS

Key Points

• HSBC Holdings PLC cut its Masco stake by 32.3% in the first quarter, selling 164,761 shares and leaving it with 344,908 shares worth about $20.8 million.
• Masco reported mixed quarterly results, beating EPS expectations at $1.04 per share but missing revenue estimates with $1.92 billion in sales, though revenue still rose 6.5% year over year.
• The company boosted shareholder returns by approving a $300 million share repurchase program and paying a quarterly dividend of $0.32 per share, equal to a 1.7% annualized yield.

Hsbc Holdings PLC reduced its position in Masco Corporation (NYSE:MAS - Free Report) by 32.3% in the first quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 344,908 shares of the construction company's stock after selling 164,761 shares during the quarter. Hsbc Holdings PLC owned approximately 0.17% of Masco worth $20,782,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other hedge funds and other institutional investors have also recently modified their holdings of MAS. Norges Bank purchased a new position in shares of Masco during the 4th quarter valued at $194,818,000. Wellington Management Group LLP purchased a new stake in Masco in the 3rd quarter worth $192,948,000. Jacobs Levy Equity Management Inc. raised its holdings in Masco by 443.6% during the third quarter. Jacobs Levy Equity Management Inc. now owns 2,330,523 shares of the construction company's stock valued at $164,046,000 after acquiring an additional 1,901,815 shares during the period. Barclays PLC raised its holdings in Masco by 234.5% during the fourth quarter. Barclays PLC now owns 1,624,841 shares of the construction company's stock valued at $103,112,000 after acquiring an additional 1,139,098 shares during the period. Finally, JPMorgan Chase & Co. lifted its position in shares of Masco by 19.2% in the fourth quarter. JPMorgan Chase & Co. now owns 6,063,286 shares of the construction company's stock valued at $384,776,000 after acquiring an additional 977,684 shares in the last quarter. 93.91% of the stock is owned by hedge funds and other institutional investors.

Masco Trading Down 0.8%

Shares of Masco stock opened at $76.89 on Wednesday. Masco Corporation has a twelve month low of $58.16 and a twelve month high of $83.21. The company has a quick ratio of 1.11, a current ratio of 1.75 and a debt-to-equity ratio of 109.07. The business has a 50-day moving average price of $73.73 and a 200-day moving average price of $69.75. The firm has a market cap of $15.51 billion, a price-to-earnings ratio of 19.08, a PEG ratio of 1.91 and a beta of 1.29.

Masco (NYSE:MAS - Get Free Report) last posted its earnings results on Wednesday, April 22nd. The construction company reported $1.04 EPS for the quarter, topping analysts' consensus estimates of $0.88 by $0.16. Masco had a return on equity of 815.20% and a net margin of 10.90%.The company had revenue of $1.92 billion for the quarter, compared to the consensus estimate of $2.07 billion. During the same period in the previous year, the business earned $0.87 earnings per share. The firm's revenue for the quarter was up 6.5% on a year-over-year basis. Equities research analysts anticipate that Masco Corporation will post 4.25 EPS for the current fiscal year.

Masco declared that its board has approved a share repurchase plan on Thursday, May 7th that permits the company to buyback $300.00 million in shares. This buyback authorization permits the construction company to purchase up to 2.1% of its stock through open market purchases. Stock buyback plans are often a sign that the company's board believes its shares are undervalued.

Masco Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Monday, June 8th. Shareholders of record on Friday, May 22nd were paid a $0.32 dividend. The ex-dividend date of this dividend was Friday, May 22nd. This represents a $1.28 dividend on an annualized basis and a yield of 1.7%. Masco's payout ratio is presently 31.76%.

Analyst Ratings Changes

MAS has been the subject of several research analyst reports. Robert W. Baird increased their target price on Masco from $72.00 to $80.00 and gave the stock a "neutral" rating in a research report on Thursday, April 23rd. The Goldman Sachs Group boosted their price target on Masco from $79.00 to $90.00 and gave the stock a "buy" rating in a report on Thursday, April 23rd. Bank of America dropped their price target on Masco from $69.00 to $61.00 and set an "underperform" rating for the company in a research note on Monday, April 20th. Zacks Research raised shares of Masco from a "hold" rating to a "strong-buy" rating in a report on Thursday, July 16th. Finally, Truist Financial increased their price objective on shares of Masco from $85.00 to $90.00 and gave the company a "buy" rating in a report on Wednesday, April 22nd. One research analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating, nine have given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the stock presently has an average rating of "Hold" and a consensus target price of $80.67.

Masco Company Profile

Masco Corporation is a global leader in the design, manufacture and distribution of branded home improvement and building products. Founded in 1929 and headquartered in Livonia, Michigan, the company has evolved from a small door‐bell manufacturer into a diversified enterprise serving both residential and commercial markets. Over its history, Masco has grown through a combination of organic innovation and strategic acquisitions, building a portfolio of well-recognized brands.

The company's product offerings are organized into two primary segments.

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