CSW Industrials (NYSE:CSW) Shares Gap Up - Still a Buy?

Key Points

• CSW Industrials shares opened sharply higher, rising from a previous close of $289.58 to $305.34 before trading near $300.35.
• Analysts raised several price targets, with the consensus target at $347.57 and an overall “Moderate Buy” rating, although most individual ratings remain “Hold” or “Equal Weight.”
• The company exceeded quarterly EPS expectations, reporting $3.84 versus $3.66 forecast, while revenue rose 33% year over year to $350.65 million; it also maintains a $0.30 quarterly dividend yielding about 0.4%.

CSW Industrials, Inc. (NYSE:CSW - Get Free Report) gapped up prior to trading on Wednesday . The stock had previously closed at $289.58, but opened at $305.34. CSW Industrials shares last traded at $300.3520, with a volume of 3,989 shares changing hands.

Analysts Set New Price Targets

A number of brokerages have weighed in on CSW. Citigroup lifted their price target on shares of CSW Industrials from $304.00 to $340.00 and gave the company a "neutral" rating in a research report on Monday, August 3rd. Wells Fargo & Company upped their price objective on shares of CSW Industrials from $285.00 to $320.00 and gave the stock an "equal weight" rating in a report on Friday, July 31st. Zacks Research cut shares of CSW Industrials from a "strong-buy" rating to a "hold" rating in a research report on Monday, July 27th. Truist Financial lifted their target price on shares of CSW Industrials from $313.00 to $332.00 and gave the company a "hold" rating in a report on Monday, August 3rd. Finally, Weiss Ratings raised CSW Industrials from a "hold (c)" rating to a "hold (c+)" rating in a research report on Monday, August 3rd. Two equities research analysts have rated the stock with a Strong Buy rating, one has issued a Buy rating and six have issued a Hold rating to the company's stock. According to MarketBeat.com, CSW Industrials currently has an average rating of "Moderate Buy" and a consensus target price of $347.57.

CSW Industrials Stock Down 1.1%

The company has a quick ratio of 1.36, a current ratio of 2.70 and a debt-to-equity ratio of 0.77. The stock has a market cap of $4.88 billion, a price-to-earnings ratio of 41.09 and a beta of 0.81. The business's fifty day moving average is $311.77 and its two-hundred day moving average is $287.40.

CSW Industrials (NYSE:CSW - Get Free Report) last released its earnings results on Thursday, July 30th. The basic materials company reported $3.84 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $3.66 by $0.18. CSW Industrials had a net margin of 10.34% and a return on equity of 17.41%. The company had revenue of $350.65 million for the quarter. The company's revenue was up 33.0% on a year-over-year basis. Equities analysts forecast that CSW Industrials, Inc. will post 12.77 earnings per share for the current fiscal year.

CSW Industrials Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, August 14th. Stockholders of record on Friday, July 31st were paid a $0.30 dividend. This represents a $1.20 annualized dividend and a dividend yield of 0.4%. The ex-dividend date was Friday, July 31st. CSW Industrials's dividend payout ratio (DPR) is presently 16.46%.

Insider Buying and Selling at CSW Industrials

In other CSW Industrials news, CEO Joseph Armes sold 1,500 shares of the company's stock in a transaction dated Tuesday, September 15th. The stock was sold at an average price of $289.58, for a total transaction of $434,370.00. Following the sale, the chief executive officer owned 62,736 shares in the company, valued at $18,167,090.88. This represents a 2.34% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Jeff Underwood sold 720 shares of the company's stock in a transaction dated Monday, August 10th. The stock was sold at an average price of $346.96, for a total value of $249,811.20. Following the sale, the executive vice president owned 6,409 shares in the company, valued at approximately $2,223,666.64. This trade represents a 10.10% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 1.20% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the company. Valley Wealth Managers Inc. acquired a new stake in shares of CSW Industrials in the 1st quarter valued at about $26,000. Mitsubishi UFJ Asset Management Co. Ltd. acquired a new position in CSW Industrials during the second quarter worth approximately $29,000. Public Employees Retirement System of Ohio acquired a new position in CSW Industrials during the second quarter worth approximately $29,000. Global Retirement Partners LLC purchased a new stake in CSW Industrials in the second quarter valued at approximately $31,000. Finally, Hantz Financial Services Inc. purchased a new stake in CSW Industrials in the fourth quarter valued at approximately $44,000. Hedge funds and other institutional investors own 82.79% of the company's stock.

CSW Industrials Company Profile

CSW Industrials, Inc is a diversified industrial company that develops, manufactures and sells specialized products serving the building, construction, industrial and energy markets. Its offerings are sold under a portfolio of established brands and are designed for applications including heating, ventilation and air conditioning, refrigeration, plumbing, electrical systems and building safety.

The company operates through three primary business segments: Contractor Solutions, Specialized Reliability Solutions and Engineered Building Solutions.

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