Masco (NYSE:MAS) Reaches New 52-Week High - Still a Buy?

Key Points

• Masco shares reached a new 52-week high of $83.85, well above their 50-day and 200-day moving averages. The stock has a market capitalization of approximately $16.05 billion and trades at a P/E ratio of 18.02.
• Recent quarterly results exceeded expectations: Masco reported EPS of $1.19 versus the $1.02 consensus, while revenue rose 2.6% year over year to $1.97 billion.
• Analyst sentiment remains cautious, with the stock carrying an average “Hold” rating and an average price target of $80.94. Masco also declared a quarterly dividend of $0.32 per share, representing a 1.5% yield.

Shares of Masco Corporation (NYSE:MAS - Get Free Report) reached a new 52-week high during mid-day trading on Monday. The company traded as high as $83.85 and last traded at $83.3220, with a volume of 308,428 shares changing hands. The stock had previously closed at $80.64.

Analyst Upgrades and Downgrades

A number of analysts recently commented on MAS shares. Zacks Research cut Masco from a "strong-buy" rating to a "hold" rating in a research report on Friday, August 14th. The Goldman Sachs Group restated a "buy" rating and issued a $95.00 price objective on shares of Masco in a report on Wednesday. Royal Bank Of Canada upped their price target on shares of Masco from $69.00 to $74.00 and gave the stock a "sector perform" rating in a research report on Thursday. Melius Research began coverage on shares of Masco in a research report on Tuesday, October 6th. They issued a "hold" rating and a $75.00 price objective for the company. Finally, Evercore lowered Masco from an "outperform" rating to an "in-line" rating and set a $78.00 target price on the stock. in a research report on Thursday, July 30th. Seven equities research analysts have rated the stock with a Buy rating, eleven have given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the stock currently has an average rating of "Hold" and an average price target of $80.94.

Masco Price Performance

The company has a fifty day simple moving average of $71.26 and a 200-day simple moving average of $70.88. The company has a debt-to-equity ratio of 109.07, a current ratio of 1.83 and a quick ratio of 1.20. The company has a market cap of $16.05 billion, a P/E ratio of 18.02, a PEG ratio of 1.79 and a beta of 1.30.

Masco (NYSE:MAS - Get Free Report) last announced its quarterly earnings data on Wednesday, October 28th. The construction company reported $1.19 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.02 by $0.17. Masco had a negative return on equity of 1,807.69% and a net margin of 12.07%. The business had revenue of $1.97 billion during the quarter, compared to analyst estimates of $1.93 billion. During the same period last year, the company earned $0.97 earnings per share. Masco's quarterly revenue was up 2.6% compared to the same quarter last year. On average, sell-side analysts predict that Masco Corporation will post 4.72 earnings per share for the current year.

Masco Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Monday, November 23rd. Stockholders of record on Friday, November 6th will be paid a $0.32 dividend. This represents a $1.28 annualized dividend and a dividend yield of 1.5%. The ex-dividend date is Friday, November 6th. Masco's payout ratio is currently 27.71%.

Institutional Trading of Masco

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. BlackRock Inc. bought a new stake in Masco in the second quarter valued at approximately $1,278,943,000. Bank of America Corp DE bought a new position in shares of Masco during the 2nd quarter valued at about $178,424,000. Amundi increased its position in shares of Masco by 17.5% during the first quarter. Amundi now owns 2,152,818 shares of the construction company's stock worth $129,977,000 after acquiring an additional 320,230 shares in the last quarter. Bank of New York Mellon Corp lifted its holdings in shares of Masco by 8.8% in the first quarter. Bank of New York Mellon Corp now owns 1,961,592 shares of the construction company's stock valued at $118,421,000 after purchasing an additional 158,231 shares in the last quarter. Finally, Deutsche Bank AG acquired a new position in Masco during the second quarter worth $149,673,000. 93.91% of the stock is currently owned by institutional investors and hedge funds.

About Masco

Masco Corporation NYSE: MAS is a manufacturer of branded home improvement and building products. The company's portfolio includes faucets, showering and bathing products, architectural coatings, decorative hardware and related products sold to residential and commercial customers.

Masco operates through two principal areas: Plumbing Products and Decorative Architectural Products. Its brands include Delta Faucet, Brizo, Hansgrohe, Behr Paint and Kichler Lighting, among others. These products are distributed through home improvement retailers, specialty dealers, distributors and other channels.

Founded in 1929 by Alex Manoogian, Masco is headquartered in Livonia, Michigan, and serves customers primarily in North America and Europe, with products sold in additional international markets.

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