CSW Industrials (NYSE:CSW) Stock Breaks Below 200-Day Moving Average After Earnings Miss

Key Points

• CSW Industrials missed earnings expectations: Fiscal second-quarter EPS was $3.66 versus the $3.69 consensus, although revenue rose 30.5% year over year to $361.44 million and EPS increased from $2.96.
• The stock fell below its 200-day moving average: Shares traded as low as $282.32, below the $290.90 average, after the earnings report. Wells Fargo also cut its price target to $290 and maintained an equal-weight rating.
• CSW Industrials declared a quarterly dividend: The company will pay $0.30 per share, or $1.20 annualized, representing a 0.4% yield and a 16.46% payout ratio.

Shares of CSW Industrials, Inc. (NYSE:CSW - Get Free Report) crossed below its two hundred day moving average during trading on Friday after the company announced weaker than expected quarterly earnings. The stock has a two hundred day moving average of $290.90 and traded as low as $282.32. CSW Industrials shares last traded at $285.72, with a volume of 153,774 shares changing hands.

The basic materials company reported $3.66 earnings per share (EPS) for the quarter, missing the consensus estimate of $3.69 by ($0.03). CSW Industrials had a return on equity of 18.38% and a net margin of 10.17%. The company had revenue of $361.44 million during the quarter. During the same quarter last year, the company earned $2.96 EPS. CSW Industrials's revenue was up 30.5% on a year-over-year basis.

CSW Industrials Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, November 13th. Investors of record on Friday, October 30th will be paid a $0.30 dividend. This represents a $1.20 annualized dividend and a dividend yield of 0.4%. The ex-dividend date is Friday, October 30th. CSW Industrials's dividend payout ratio (DPR) is presently 16.46%.

Key CSW Industrials News

Here are the key news stories impacting CSW Industrials this week:

• Positive Sentiment: Fiscal 2027 second-quarter revenue rose 30.5% year over year to $361.44 million, while earnings increased to $3.66 per share from $2.96 a year earlier. The company also reported record results, supported by 13% organic growth in its Contractor Solutions segment. CSW Industrials fiscal 2027 second-quarter results
• Positive Sentiment: Reported adjusted earnings and revenue were characterized as surpassing consensus in some coverage, highlighting resilient demand and operating momentum despite the headline EPS comparison. CSW Industrials shares rise after fiscal second-quarter results
• Neutral Sentiment: Management is advancing its Greco exit, while discussing approximately $49 million in fiscal 2027 interest expense. The exit could simplify the portfolio, but the interest burden remains an important factor for future profitability. CSW outlines fiscal 2027 interest expense and Greco exit
• Negative Sentiment: EPS of $3.66 missed the $3.69 consensus estimate by $0.03, creating a modest earnings-quality concern even as sales growth remained strong. CSW Industrials Q2 earnings miss estimates
• Negative Sentiment: Wells Fargo lowered its price target from $320 to $290 and assigned an “equal weight” rating, leaving limited implied upside and signaling reduced near-term conviction in the stock. Wells Fargo lowers CSW Industrials price target

Wall Street Analysts Forecast Growth

Several equities analysts have commented on CSW shares. Truist Financial upped their price target on CSW Industrials from $313.00 to $332.00 and gave the company a "hold" rating in a report on Monday, August 3rd. Wells Fargo & Company reduced their price objective on CSW Industrials from $320.00 to $290.00 and set an "equal weight" rating for the company in a research report on Friday. Citigroup lifted their price objective on CSW Industrials from $304.00 to $340.00 and gave the stock a "neutral" rating in a report on Monday, August 3rd. Zacks Research cut CSW Industrials from a "strong-buy" rating to a "hold" rating in a research report on Monday, July 27th. Finally, Weiss Ratings upgraded CSW Industrials from a "hold (c)" rating to a "hold (c+)" rating in a research note on Monday, August 3rd. Two investment analysts have rated the stock with a Strong Buy rating, one has issued a Buy rating and six have assigned a Hold rating to the company's stock. Based on data from MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus target price of $343.29.

Insider Transactions at CSW Industrials

In related news, EVP Jeff Underwood sold 720 shares of the firm's stock in a transaction that occurred on Monday, August 10th. The stock was sold at an average price of $346.96, for a total transaction of $249,811.20. Following the completion of the transaction, the executive vice president owned 6,409 shares in the company, valued at $2,223,666.64. This trade represents a 10.10% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO Joseph Armes sold 1,500 shares of the business's stock in a transaction on Thursday, October 15th. The shares were sold at an average price of $287.04, for a total value of $430,560.00. Following the completion of the sale, the chief executive officer directly owned 64,083 shares in the company, valued at approximately $18,394,384.32. This represents a 2.29% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders sold 3,720 shares of company stock worth $1,114,741. 1.20% of the stock is currently owned by insiders.

Institutional Trading of CSW Industrials

Large investors have recently bought and sold shares of the stock. BlackRock Inc. acquired a new stake in CSW Industrials in the 2nd quarter valued at about $686,462,000. Jupiter Topco LLC acquired a new position in shares of CSW Industrials during the second quarter worth approximately $36,656,000. Bank of America Corp DE acquired a new position in shares of CSW Industrials during the second quarter worth approximately $29,809,000. Bank of New York Mellon Corp acquired a new position in shares of CSW Industrials during the second quarter worth approximately $27,915,000. Finally, Fifth Third Bancorp grew its stake in shares of CSW Industrials by 19,565.8% during the first quarter. Fifth Third Bancorp now owns 81,023 shares of the basic materials company's stock valued at $21,113,000 after purchasing an additional 80,611 shares during the last quarter. 82.79% of the stock is currently owned by institutional investors.

CSW Industrials Price Performance

The company has a debt-to-equity ratio of 0.66, a current ratio of 2.35 and a quick ratio of 1.36. The company's 50 day moving average price is $298.08 and its 200 day moving average price is $290.90. The firm has a market capitalization of $4.65 billion, a P/E ratio of 36.72 and a beta of 0.81.

CSW Industrials Company Profile

CSW Industrials, Inc NYSE: CSW is a diversified industrial company that develops, manufactures and sells products designed for professional trades, commercial and residential construction, and industrial maintenance applications. Its offerings are marketed primarily through established brands and distribution channels serving contractors, building professionals and industrial customers.

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

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