Williams-Sonoma (NYSE:WSM) Hits New 52-Week High - Time to Buy?

Key Points

• Williams-Sonoma shares reached a new 52-week high, trading as high as $257.17, supported by strong recent momentum and a market capitalization of approximately $30.74 billion.
• Analysts maintain a generally positive outlook, with a consensus rating of “Moderate Buy” from 18 analysts and a consensus price target of $247.94, though that target is below the stock’s recent trading price.
• The company exceeded quarterly earnings and revenue expectations, reporting $2.10 in EPS and $1.96 billion in revenue, while also declaring a quarterly dividend of $0.76 per share, or a 1.2% annualized yield.

Shares of Williams-Sonoma, Inc. (NYSE:WSM - Get Free Report) hit a new 52-week high on Thursday. The stock traded as high as $257.17 and last traded at $254.0540, with a volume of 122,607 shares. The stock had previously closed at $253.32.

Wall Street Analysts Forecast Growth

A number of brokerages recently issued reports on WSM. Royal Bank Of Canada reiterated an "outperform" rating and issued a $260.00 price objective on shares of Williams-Sonoma in a report on Thursday, August 27th. TD Cowen reissued a "buy" rating on shares of Williams-Sonoma in a research note on Monday, August 10th. Credit Suisse Group set a $261.00 price target on Williams-Sonoma in a report on Monday, August 24th. The Goldman Sachs Group reissued a "buy" rating and issued a $261.00 price target (up from $230.00) on shares of Williams-Sonoma in a research report on Tuesday, August 11th. Finally, KeyCorp restated an "overweight" rating and issued a $270.00 price objective (up from $250.00) on shares of Williams-Sonoma in a research note on Thursday, August 27th. Ten investment analysts have rated the stock with a Buy rating and eight have given a Hold rating to the company's stock. Based on data from MarketBeat.com, Williams-Sonoma presently has an average rating of "Moderate Buy" and a consensus price target of $247.94.

Williams-Sonoma Stock Up 3.0%

The stock's 50-day moving average price is $234.27 and its 200-day moving average price is $218.73. The company has a market capitalization of $30.74 billion, a price-to-earnings ratio of 26.71, a price-to-earnings-growth ratio of 2.75 and a beta of 1.48.

Williams-Sonoma (NYSE:WSM - Get Free Report) last posted its quarterly earnings results on Wednesday, August 26th. The specialty retailer reported $2.10 earnings per share for the quarter, topping analysts' consensus estimates of $2.08 by $0.02. The business had revenue of $1.96 billion during the quarter, compared to the consensus estimate of $1.93 billion. Williams-Sonoma had a net margin of 14.73% and a return on equity of 53.48%. Williams-Sonoma's revenue for the quarter was up 6.7% compared to the same quarter last year. During the same period in the previous year, the firm posted $2.00 earnings per share. On average, equities research analysts anticipate that Williams-Sonoma, Inc. will post 9.51 EPS for the current year.

Williams-Sonoma Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, November 20th. Investors of record on Friday, October 16th will be given a $0.76 dividend. The ex-dividend date of this dividend is Friday, October 16th. This represents a $3.04 dividend on an annualized basis and a dividend yield of 1.2%. Williams-Sonoma's payout ratio is currently 31.12%.

Insider Activity

In related news, EVP Karalyn Yearout sold 522 shares of the stock in a transaction on Friday, October 9th. The stock was sold at an average price of $239.36, for a total value of $124,945.92. Following the sale, the executive vice president owned 19,673 shares in the company, valued at approximately $4,708,929.28. This represents a 2.58% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Jeffrey Howie sold 3,045 shares of the firm's stock in a transaction that occurred on Wednesday, September 16th. The stock was sold at an average price of $220.61, for a total transaction of $671,757.45. Following the sale, the chief financial officer owned 34,138 shares of the company's stock, valued at $7,531,184.18. This trade represents a 8.19% decrease in their ownership of the stock. 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 ninety days, insiders have sold 40,883 shares of company stock worth $9,117,518. 1.10% of the stock is owned by insiders.

Institutional Investors Weigh In On Williams-Sonoma

A number of hedge funds have recently added to or reduced their stakes in WSM. Root Financial Partners LLC bought a new stake in Williams-Sonoma during the 3rd quarter worth approximately $91,000. Precedent Wealth Partners LLC increased its position in shares of Williams-Sonoma by 3.1% during the 3rd quarter. Precedent Wealth Partners LLC now owns 20,894 shares of the specialty retailer's stock valued at $4,763,000 after purchasing an additional 624 shares during the last quarter. Foster Victor Wealth Advisors LLC purchased a new stake in shares of Williams-Sonoma during the 3rd quarter valued at $225,000. Arwa LLC bought a new position in Williams-Sonoma during the third quarter valued at about $1,124,000. Finally, Axxcess Wealth Management LLC purchased a new stake in Williams-Sonoma in the third quarter worth $238,000. 99.29% of the stock is currently owned by institutional investors.

Williams-Sonoma Company Profile

Williams-Sonoma, Inc is a specialty retailer focused on home furnishings, décor, kitchenware and related products. The company operates a portfolio of lifestyle brands, including Williams Sonoma, Pottery Barn, West Elm, Pottery Barn Kids, Rejuvenation and Mark & Graham.

Its products include cookware, tableware, appliances, furniture, bedding, lighting, rugs, home accessories, gifts and personalized merchandise. Williams-Sonoma reaches customers through e-commerce websites, retail stores, catalogs and trade and contract sales, serving both individual consumers and professional customers such as interior designers and hospitality businesses.

Founded in 1956 by Chuck Williams, the company began as a retailer specializing in high-quality French cookware before expanding into a broader home-focused portfolio.

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