Williams-Sonoma (NYSE:WSM) Reaches New 1-Year High - What's Next?

Key Points

• Williams-Sonoma reached a new 52-week high, trading as high as $263.65 and last changing hands near $257.66. The stock has a $30.19 billion market capitalization and trades at a P/E ratio of 26.23.
• Analyst sentiment is positive, with 10 Buy ratings and eight Holds producing a consensus “Moderate Buy” rating. The average price target is $247.89, although several firms recently raised their targets to $250–$261.
• The company exceeded quarterly expectations, reporting $2.10 in EPS and $1.96 billion in revenue, with sales up 6.7% year over year. Williams-Sonoma also declared a quarterly dividend of $0.76, while insiders sold approximately $9.1 million of stock over the past 90 days.

Shares of Williams-Sonoma, Inc. (NYSE:WSM - Get Free Report) hit a new 52-week high during trading on Friday. The stock traded as high as $263.65 and last traded at $257.6640, with a volume of 22,373 shares. The stock had previously closed at $250.09.

Analysts Set New Price Targets

Several research firms have commented on WSM. Credit Suisse Group set a $261.00 target price on Williams-Sonoma in a research note on Monday, August 24th. Morgan Stanley lifted their price target on Williams-Sonoma from $210.00 to $240.00 and gave the stock an "equal weight" rating in a report on Thursday, August 27th. The Goldman Sachs Group reiterated a "buy" rating and issued a $261.00 price target (up from $230.00) on shares of Williams-Sonoma in a research note on Tuesday, August 11th. TD Cowen reissued a "buy" rating on shares of Williams-Sonoma in a report on Monday, August 10th. Finally, Argus raised their price target on Williams-Sonoma from $230.00 to $250.00 and gave the stock a "buy" rating in a research report on Wednesday, September 2nd. Ten investment analysts have rated the stock with a Buy rating and eight have given a Hold rating to the stock. According to MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average target price of $247.89.

Williams-Sonoma Stock Performance

The firm has a market capitalization of $30.19 billion, a P/E ratio of 26.23, a PEG ratio of 2.71 and a beta of 1.48. The stock has a 50 day moving average of $236.05 and a 200-day moving average of $214.52.

Williams-Sonoma (NYSE:WSM - Get Free Report) last posted its quarterly earnings data on Wednesday, August 26th. The specialty retailer reported $2.10 earnings per share for the quarter, topping the consensus estimate of $2.08 by $0.02. Williams-Sonoma had a net margin of 14.73% and a return on equity of 53.48%. The company had revenue of $1.96 billion for the quarter, compared to analysts' expectations of $1.93 billion. During the same period in the prior year, the business earned $2.00 earnings per share. Williams-Sonoma's revenue for the quarter was up 6.7% compared to the same quarter last year. As a group, sell-side analysts expect that Williams-Sonoma, Inc. will post 9.50 EPS for the current year.

Williams-Sonoma Dividend Announcement

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 issued a $0.76 dividend. The ex-dividend date is Friday, October 16th. This represents a $3.04 annualized dividend and a yield of 1.2%. Williams-Sonoma's dividend payout ratio (DPR) is currently 31.12%.

Insider Buying and Selling at Williams-Sonoma

In other Williams-Sonoma news, CEO Laura Alber sold 35,000 shares of Williams-Sonoma stock in a transaction on Wednesday, September 16th. The shares were sold at an average price of $221.20, for a total transaction of $7,742,000.00. Following the completion of the transaction, the chief executive officer directly owned 853,524 shares of the company's stock, valued at $188,799,508.80. The trade was a 3.94% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Anne A. Finucane sold 794 shares of Williams-Sonoma stock in a transaction on Friday, October 16th. The stock was sold at an average price of $252.14, for a total value of $200,199.16. Following the sale, the director owned 9,404 shares of the company's stock, valued at approximately $2,371,124.56. This trade represents a 7.79% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders sold 40,883 shares of company stock worth $9,117,518. 1.10% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently made changes to their positions in WSM. BlackRock Inc. purchased a new stake in Williams-Sonoma in the 2nd quarter valued at about $2,656,062,000. Aristotle Capital Management LLC increased its position in Williams-Sonoma by 22.0% during the 1st quarter. Aristotle Capital Management LLC now owns 11,140,471 shares of the specialty retailer's stock worth $2,031,242,000 after purchasing an additional 2,009,032 shares during the period. State Street Corp raised its holdings in Williams-Sonoma by 1.9% during the second quarter. State Street Corp now owns 5,906,785 shares of the specialty retailer's stock worth $1,376,872,000 after purchasing an additional 112,683 shares during the last quarter. First Trust Advisors LP lifted its holdings in Williams-Sonoma by 9.2% in the 1st quarter. First Trust Advisors LP now owns 2,664,580 shares of the specialty retailer's stock valued at $485,833,000 after purchasing an additional 224,128 shares in the last quarter. Finally, Dimensional Fund Advisors LP boosted its stake in Williams-Sonoma by 1.4% in the 1st quarter. Dimensional Fund Advisors LP now owns 1,479,064 shares of the specialty retailer's stock worth $269,640,000 after buying an additional 20,886 shares during the last quarter. 99.29% of the stock is currently owned by hedge funds and other institutional investors.

About Williams-Sonoma

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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