AZZ (NYSE:AZZ) Sees Large Volume Increase - Time to Buy?

Key Points

• AZZ shares traded actively, with 148,708 shares changing hands, while the stock edged up to $133.45 from a prior close of $133.09.
• Analysts maintain a “Moderate Buy” consensus with an average price target of $155.25; targets range from $144 to $170, though some firms recently downgraded the stock to “Hold.”
• AZZ exceeded quarterly earnings and revenue expectations, reporting $1.85 EPS and $448.53 million in revenue, while raising its quarterly dividend from $0.20 to $0.24 per share. Two chief operating officers also recently sold shares.

AZZ Inc. (NYSE:AZZ - Get Free Report) shares saw unusually-strong trading volume on Wednesday . 148,708 shares traded hands during trading, a decline of 35% from the previous session's volume of 227,809 shares.The stock last traded at $133.45 and had previously closed at $133.09.

Wall Street Analyst Weigh In

Several equities research analysts have recently commented on AZZ shares. Wells Fargo & Company boosted their target price 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. Wall Street Zen downgraded AZZ from a "buy" rating to a "hold" rating in a research note on Sunday, July 12th. B. Riley Financial boosted their price objective on AZZ from $169.00 to $170.00 and gave the stock a "buy" rating in a report on Monday, July 13th. Finally, Weiss Ratings downgraded AZZ from a "buy (b+)" rating to a "buy (b)" rating in a research note on Thursday, July 9th. Four investment analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. According to MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average target price of $155.25.

AZZ Price Performance

The company has a quick ratio of 1.39, a current ratio of 1.92 and a debt-to-equity ratio of 0.35. The business's 50-day moving average is $144.70 and its two-hundred day moving average is $140.57. The company has a market capitalization of $4.00 billion, a P/E ratio of 20.31 and a beta of 1.11.

AZZ (NYSE:AZZ - Get Free Report) last issued its quarterly earnings data on Wednesday, July 8th. The industrial products company reported $1.85 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.80 by $0.05. AZZ had a net margin of 11.83% and a return on equity of 14.18%. The business had revenue of $448.53 million during the quarter, compared to the consensus estimate of $434.58 million. During the same period in the prior year, the firm posted $1.78 EPS. The firm'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 7.06 earnings per share for the current year.

AZZ Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Thursday, July 30th. Investors of record on Thursday, July 9th were issued a dividend of $0.24 per share. This represents a $0.96 dividend on an annualized basis and a yield of 0.7%. This is an increase from AZZ's previous quarterly dividend of $0.20. The ex-dividend date was Thursday, July 9th. AZZ's dividend payout ratio is 14.63%.

Insider Buying and Selling at AZZ

In other AZZ news, COO Bryan Lee Stovall sold 2,677 shares of the business's stock in a transaction on Friday, August 14th. The stock was sold at an average price of $150.07, for a total value of $401,737.39. Following the transaction, the chief operating officer owned 35,000 shares of the company's stock, valued at approximately $5,252,450. The trade was a 7.11% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, COO Jeffrey Vellines sold 4,220 shares of the company's stock in a transaction on Tuesday, August 11th. The shares were sold at an average price of $153.55, for a total value of $647,981.00. Following the completion of the transaction, the chief operating officer owned 1,834 shares of the company's stock, valued at $281,610.70. This trade represents a 69.71% decrease in their position. The SEC filing for this sale provides additional information. 1.70% of the stock is currently owned by insiders.

Hedge Funds Weigh In On AZZ

Several institutional investors have recently added to or reduced their stakes in the stock. Tidal Investments LLC lifted its stake in AZZ by 0.7% in the 2nd quarter. Tidal Investments LLC now owns 21,919 shares of the industrial products company's stock worth $3,399,000 after purchasing an additional 161 shares in the last quarter. Integrated Wealth Concepts LLC purchased a new position in shares of AZZ during the 2nd quarter valued at $66,000. IFP Advisors Inc increased its holdings in shares of AZZ by 20.0% in the second quarter. IFP Advisors Inc now owns 1,009 shares of the industrial products company's stock worth $156,000 after purchasing an additional 168 shares during the period. Allworth Financial LP increased its holdings in shares of AZZ by 524.2% in the second quarter. Allworth Financial LP now owns 387 shares of the industrial products company's stock worth $60,000 after purchasing an additional 325 shares during the period. Finally, Nykredit A S purchased a new stake in shares of AZZ in the second quarter worth $197,000. Institutional investors own 90.93% of the company's stock.

AZZ Company Profile

AZZ Inc NYSE: AZZ is a provider of metal coating and coil coating solutions serving industrial and infrastructure markets. The company's Metal Coatings segment offers hot-dip galvanizing, powder coating, anodizing and related finishing services designed to protect steel and other metal products from corrosion and extend their service life.

Through its Precoat Metals business, AZZ provides continuous coil coating services for flat-rolled steel and aluminum. Its coatings are used in products and applications including building materials, transportation equipment, appliances, consumer goods, packaging and other manufactured components.

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