Stanley Black & Decker (NYSE:SWK) Reaches New 12-Month High After Dividend Announcement

Key Points

• Stanley Black & Decker shares reached a new 52-week high of $105.17 after the company announced a quarterly dividend of $0.84 per share, equivalent to a 3.3% annualized yield.
• Analyst sentiment remains mixed, with a consensus “Hold” rating and an average price target of $94.11, below the stock’s recent trading level.
• The company beat quarterly earnings expectations, reporting $1.57 in adjusted EPS versus the $1.21 consensus estimate, while institutional investors own approximately 87.8% of outstanding shares.

Stanley Black & Decker, Inc. (NYSE:SWK - Get Free Report)'s share price hit a new 52-week high on Friday following a dividend announcement from the company. The stock traded as high as $105.17 and last traded at $102.87, with a volume of 54,962 shares changing hands. The stock had previously closed at $103.61.The newly announced dividend which will be paid on Tuesday, December 22nd. Investors of record on Tuesday, December 1st will be paid a dividend of $0.84 per share. This represents a $3.36 dividend on an annualized basis and a yield of 3.3%. The ex-dividend date of this dividend is Tuesday, December 1st. Stanley Black & Decker's dividend payout ratio (DPR) is currently 81.95%.

Analyst Upgrades and Downgrades

A number of analysts have commented on the stock. Morgan Stanley set a $100.00 price target on shares of Stanley Black & Decker in a research report on Tuesday, October 6th. Citigroup boosted their price objective on Stanley Black & Decker from $100.00 to $107.00 and gave the company a "buy" rating in a research note on Friday, July 31st. Wall Street Zen lowered Stanley Black & Decker from a "strong-buy" rating to a "buy" rating in a research report on Saturday, October 24th. The Goldman Sachs Group reaffirmed a "neutral" rating and set a $93.00 target price on shares of Stanley Black & Decker in a research note on Wednesday, July 29th. Finally, Wells Fargo & Company dropped their price target on Stanley Black & Decker from $95.00 to $90.00 and set an "equal weight" rating on the stock in a research note on Friday, October 16th. Four research analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of "Hold" and a consensus target price of $94.11.

Stanley Black & Decker Stock Down 1.2%

The stock has a market cap of $15.47 billion, a price-to-earnings ratio of 24.99, a price-to-earnings-growth ratio of 1.49 and a beta of 1.17. The firm's fifty day moving average price is $93.35 and its two-hundred day moving average price is $85.50. The company has a debt-to-equity ratio of 0.53, a current ratio of 1.43 and a quick ratio of 0.55.

Stanley Black & Decker (NYSE:SWK - Get Free Report) last issued its earnings results on Wednesday, July 29th. The industrial products company reported $1.57 EPS for the quarter, beating analysts' consensus estimates of $1.21 by $0.36. Stanley Black & Decker had a return on equity of 8.78% and a net margin of 4.07%. The business had revenue of $3.96 billion during the quarter, compared to analyst estimates of $3.97 billion. During the same period in the previous year, the company posted $1.08 EPS. The firm's revenue was up .4% compared to the same quarter last year. Sell-side analysts forecast that Stanley Black & Decker, Inc. will post 5.59 earnings per share for the current fiscal year.

Institutional Trading of Stanley Black & Decker

A number of hedge funds and other institutional investors have recently bought and sold shares of SWK. BlackRock Inc. bought a new stake in Stanley Black & Decker in the 2nd quarter worth about $1,006,417,000. State Street Corp lifted its position in shares of Stanley Black & Decker by 5.0% during the 2nd quarter. State Street Corp now owns 8,751,801 shares of the industrial products company's stock worth $823,720,000 after buying an additional 416,614 shares in the last quarter. Dimensional Fund Advisors LP lifted its position in shares of Stanley Black & Decker by 1.9% during the 1st quarter. Dimensional Fund Advisors LP now owns 4,976,851 shares of the industrial products company's stock worth $353,618,000 after buying an additional 92,573 shares in the last quarter. Nykredit A S purchased a new position in shares of Stanley Black & Decker in the 2nd quarter worth approximately $166,378,000. Finally, Confluence Investment Management LLC bought a new position in shares of Stanley Black & Decker in the second quarter valued at approximately $126,909,000. Institutional investors own 87.77% of the company's stock.

About Stanley Black & Decker

Stanley Black & Decker, Inc is a global manufacturer of tools, outdoor products and related equipment. The company serves professional contractors, industrial customers, do-it-yourself consumers and outdoor enthusiasts through a portfolio that includes power tools, hand tools, storage solutions, accessories, lawn and garden equipment, and other outdoor products.

Its brands include DEWALT, CRAFTSMAN, STANLEY, BLACK+DECKER, Cub Cadet, Hustler and Troy-Bilt. Products are sold through retailers, distributors, e-commerce channels and other commercial outlets, supporting construction, maintenance, manufacturing, automotive repair and residential applications.

The company was formed in 2010 through the merger of The Stanley Works and The Black & Decker Corporation.

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