Little House Capital LLC Makes New Investment in Williams-Sonoma, Inc. $WSM

Key Points

• Little House Capital LLC initiated a new position in Williams-Sonoma during Q1, buying 4,391 shares worth about $801,000. The filing also noted that institutional ownership remains extremely high, with hedge funds and other institutions holding most of the stock.
• Williams-Sonoma posted a strong quarter, reporting $1.93 EPS versus the $1.80 consensus and revenue of $1.81 billion, up 4.4% year over year. The company also announced a quarterly dividend of $0.76 per share, implying an annualized yield of about 1.3%.
• Analysts remain mixed on the stock: the consensus rating is Moderate Buy with an average target price of $212.65, though Weiss Ratings recently downgraded it to hold. Shares were trading around $228.50 at the time of the report, above several published price targets.

Little House Capital LLC bought a new position in shares of Williams-Sonoma, Inc. (NYSE:WSM - Free Report) during the first quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund bought 4,391 shares of the specialty retailer's stock, valued at approximately $801,000.

Several other institutional investors and hedge funds also recently bought and sold shares of WSM. Norges Bank acquired a new stake in shares of Williams-Sonoma during the 4th quarter worth approximately $316,920,000. Boston Partners purchased a new position in Williams-Sonoma in the third quarter worth approximately $254,778,000. Victory Capital Management Inc. grew its position in Williams-Sonoma by 86.0% in the fourth quarter. Victory Capital Management Inc. now owns 1,117,119 shares of the specialty retailer's stock worth $199,506,000 after acquiring an additional 516,593 shares during the period. Wellington Management Group LLP grew its position in Williams-Sonoma by 4,142.7% in the third quarter. Wellington Management Group LLP now owns 478,072 shares of the specialty retailer's stock worth $93,439,000 after acquiring an additional 466,804 shares during the period. Finally, Man Group plc increased its stake in Williams-Sonoma by 623.0% during the second quarter. Man Group plc now owns 394,310 shares of the specialty retailer's stock worth $64,418,000 after acquiring an additional 339,771 shares during the last quarter. 99.29% of the stock is currently owned by institutional investors and hedge funds.

Williams-Sonoma Stock Up 0.1%

Shares of NYSE WSM opened at $228.50 on Friday. The firm has a market cap of $26.91 billion, a price-to-earnings ratio of 25.59, a PEG ratio of 2.50 and a beta of 1.49. Williams-Sonoma, Inc. has a 52-week low of $165.51 and a 52-week high of $244.65. The business's 50 day moving average is $210.86 and its two-hundred day moving average is $201.24.

Williams-Sonoma (NYSE:WSM - Get Free Report) last released its quarterly earnings results on Thursday, May 21st. The specialty retailer reported $1.93 EPS for the quarter, topping analysts' consensus estimates of $1.80 by $0.13. Williams-Sonoma had a return on equity of 53.29% and a net margin of 13.81%.The company had revenue of $1.81 billion for the quarter, compared to analysts' expectations of $1.80 billion. During the same period in the prior year, the firm earned $1.85 earnings per share. The firm's revenue was up 4.4% compared to the same quarter last year. Analysts anticipate that Williams-Sonoma, Inc. will post 9.39 EPS for the current fiscal year.

Williams-Sonoma Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, August 21st. Investors of record on Friday, July 17th will be paid a dividend of $0.76 per share. The ex-dividend date of this dividend is Friday, July 17th. This represents a $3.04 annualized dividend and a yield of 1.3%. Williams-Sonoma's dividend payout ratio is presently 34.04%.

Analysts Set New Price Targets

A number of research firms have commented on WSM. Weiss Ratings downgraded Williams-Sonoma from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Tuesday, June 2nd. Evercore set a $200.00 price target on Williams-Sonoma in a report on Tuesday, April 14th. Argus set a $230.00 price objective on Williams-Sonoma in a research report on Friday, May 29th. Royal Bank Of Canada set a $192.00 price objective on shares of Williams-Sonoma and gave the company an "outperform" rating in a report on Friday, May 22nd. Finally, Morgan Stanley set a $210.00 target price on shares of Williams-Sonoma and gave the company an "equal weight" rating in a research report on Friday, May 22nd. One research analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating and nine have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average target price of $212.65.

Insider Activity

In other Williams-Sonoma news, EVP Karalyn Yearout sold 1,112 shares of Williams-Sonoma stock in a transaction dated Monday, June 15th. The stock was sold at an average price of $228.49, for a total value of $254,080.88. Following the completion of the transaction, the executive vice president directly owned 21,717 shares of the company's stock, valued at $4,962,117.33. The trade was a 4.87% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Laura Alber sold 20,000 shares of the business's stock in a transaction dated Thursday, May 14th. The stock was sold at an average price of $172.61, for a total transaction of $3,452,200.00. Following the sale, the chief executive officer owned 938,524 shares in the company, valued at $161,998,627.64. This trade represents a 2.09% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders have sold 36,634 shares of company stock worth $6,812,283. 1.10% of the stock is owned by corporate insiders.

About Williams-Sonoma

Williams‑Sonoma, Inc is a specialty retailer focused on the home and culinary markets, best known for premium cookware, kitchen tools and home furnishings. The company traces its roots to a single cookware store founded by Chuck Williams in 1956 in Sonoma, California, and has evolved into a multi‑brand home furnishings and housewares business. Its merchandise mix spans cookware and kitchen electrics, tabletop and food prep items, furniture, bedding, lighting and decorative accessories designed for both everyday use and higher‑end interiors.

The company operates a portfolio of consumer brands that target distinct segments of the home market.

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