Vulcan Value Partners LLC Makes New Investment in Stanley Black & Decker, Inc. (NYSE:SWK)

Key Points

• Vulcan Value Partners LLC has acquired a new stake in Stanley Black & Decker, investing approximately $72 million for 938,140 shares, making it the company's 22nd largest position.
• Stanley Black & Decker's stock recently traded down 1.0% to $66.98, with the company reporting a 6.2% decline in revenue year-over-year for its latest quarter.
• The company announced a quarterly dividend increase to $0.83 per share, representing a 5.0% yield, with a payout ratio of 105.40%.

Vulcan Value Partners LLC bought a new position in Stanley Black & Decker, Inc. (NYSE:SWK - Free Report) in the 1st quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The institutional investor bought 938,140 shares of the industrial products company's stock, valued at approximately $72,063,000. Stanley Black & Decker comprises about 1.4% of Vulcan Value Partners LLC's investment portfolio, making the stock its 22nd largest position. Vulcan Value Partners LLC owned approximately 0.61% of Stanley Black & Decker as of its most recent SEC filing.

Several other institutional investors and hedge funds have also recently bought and sold shares of the company. Vontobel Holding Ltd. boosted its holdings in shares of Stanley Black & Decker by 3.8% in the first quarter. Vontobel Holding Ltd. now owns 4,494 shares of the industrial products company's stock valued at $345,000 after acquiring an additional 165 shares in the last quarter. Allen Mooney & Barnes Investment Advisors LLC boosted its holdings in Stanley Black & Decker by 0.7% during the first quarter. Allen Mooney & Barnes Investment Advisors LLC now owns 24,854 shares of the industrial products company's stock worth $1,911,000 after buying an additional 174 shares in the last quarter. Allworth Financial LP lifted its position in shares of Stanley Black & Decker by 9.2% in the 1st quarter. Allworth Financial LP now owns 2,321 shares of the industrial products company's stock valued at $178,000 after acquiring an additional 195 shares in the last quarter. Coastline Trust Co boosted its stake in Stanley Black & Decker by 5.0% in the 4th quarter. Coastline Trust Co now owns 4,190 shares of the industrial products company's stock worth $336,000 after purchasing an additional 200 shares during the period. Finally, Regents Gate Capital LLP boosted its stake in Stanley Black & Decker by 0.4% in the 1st quarter. Regents Gate Capital LLP now owns 55,272 shares of the industrial products company's stock worth $4,249,000 after purchasing an additional 215 shares during the period. Institutional investors own 87.77% of the company's stock.

Stanley Black & Decker Stock Up 1.1%

Shares of SWK traded up $0.73 during midday trading on Monday, reaching $67.71. 440,311 shares of the stock were exchanged, compared to its average volume of 2,453,317. The company has a market cap of $10.48 billion, a price-to-earnings ratio of 21.45, a P/E/G ratio of 1.47 and a beta of 1.16. The firm has a 50 day simple moving average of $68.48 and a 200-day simple moving average of $72.92. The company has a quick ratio of 0.34, a current ratio of 1.04 and a debt-to-equity ratio of 0.52. Stanley Black & Decker, Inc. has a 12-month low of $53.91 and a 12-month high of $110.88.

Stanley Black & Decker (NYSE:SWK - Get Free Report) last released its quarterly earnings results on Tuesday, July 29th. The industrial products company reported $1.08 earnings per share for the quarter, beating analysts' consensus estimates of $0.38 by $0.70. The business had revenue of $3.95 billion for the quarter, compared to the consensus estimate of $4.01 billion. Stanley Black & Decker had a net margin of 3.15% and a return on equity of 7.76%. Stanley Black & Decker's revenue for the quarter was down 6.2% on a year-over-year basis. During the same quarter last year, the firm earned $1.09 EPS. Research analysts forecast that Stanley Black & Decker, Inc. will post 5.16 EPS for the current year.

Stanley Black & Decker Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Tuesday, September 16th. Shareholders of record on Tuesday, September 2nd will be given a $0.83 dividend. The ex-dividend date is Tuesday, September 2nd. This represents a $3.32 annualized dividend and a yield of 4.9%. This is a positive change from Stanley Black & Decker's previous quarterly dividend of $0.82. Stanley Black & Decker's dividend payout ratio (DPR) is 104.13%.

Analysts Set New Price Targets

A number of equities analysts recently commented on SWK shares. UBS Group decreased their price objective on shares of Stanley Black & Decker from $120.00 to $100.00 and set a "buy" rating for the company in a research note on Tuesday, May 13th. Wells Fargo & Company raised their price objective on shares of Stanley Black & Decker from $70.00 to $75.00 and gave the stock an "equal weight" rating in a research note on Wednesday, July 30th. Wall Street Zen lowered shares of Stanley Black & Decker from a "buy" rating to a "hold" rating in a research note on Saturday, July 26th. JPMorgan Chase & Co. decreased their price objective on shares of Stanley Black & Decker from $93.00 to $60.00 and set an "underweight" rating for the company in a research note on Monday, May 5th. Finally, Robert W. Baird raised their price objective on shares of Stanley Black & Decker from $65.00 to $78.00 and gave the stock a "neutral" rating in a research note on Tuesday, July 22nd. One research analyst has rated the stock with a sell rating, six have assigned a hold rating and five have assigned a buy rating to the stock. According to data from MarketBeat, the stock presently has an average rating of "Hold" and an average price target of $91.10.

About Stanley Black & Decker

Stanley Black & Decker, Inc engages in the provision of power and hand tools, and related accessories, products, services and equipment for oil and gas, infrastructure applications, commercial electronic security and monitoring systems, healthcare solutions, and mechanical access solutions. It operates through the Tools and Outdoor and Industrial segments.