Williams-Sonoma (NYSE:WSM) Reaches New 52-Week High - Here's Why

Key Points

• Williams-Sonoma shares reached a new 52-week high of $255.33, supported by strong momentum; the stock’s 50-day and 200-day moving averages were $234.11 and $216.71, respectively.
• The company exceeded quarterly expectations, reporting $2.10 in EPS and $1.96 billion in revenue, with revenue up 6.7% year over year. Analysts maintain a “Moderate Buy” consensus and an average price target of $245.56.
• Williams-Sonoma declared a quarterly dividend of $0.76 per share, equating to a 1.2% yield, while institutional investors own 99.29% of the company’s stock.

Williams-Sonoma, Inc. (NYSE:WSM - Get Free Report)'s share price hit a new 52-week high during mid-day trading on Friday. The stock traded as high as $255.33 and last traded at $253.2960, with a volume of 117,113 shares. The stock had previously closed at $252.03.

Analysts Set New Price Targets

A number of equities analysts have weighed in on the company. Weiss Ratings raised Williams-Sonoma from a "hold (c+)" rating to a "buy (b)" rating in a research report on Monday, August 31st. UBS Group reaffirmed a "neutral" rating on shares of Williams-Sonoma in a report on Monday. Citigroup lifted their price target on shares of Williams-Sonoma from $248.00 to $252.00 and gave the stock a "neutral" rating in a research note on Thursday, August 27th. KeyCorp restated an "overweight" rating and set a $270.00 price objective (up from $250.00) on shares of Williams-Sonoma in a research report on Thursday, August 27th. Finally, Seaport Research Partners reaffirmed a "buy" rating on shares of Williams-Sonoma in a research report on Friday, August 14th. Ten investment analysts have rated the stock with a Buy rating and eight have issued a Hold rating to the company. According to MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus target price of $245.56.

Williams-Sonoma Price Performance

The firm has a market capitalization of $29.59 billion, a PE ratio of 25.80, a P/E/G ratio of 2.63 and a beta of 1.48. The company has a 50-day moving average price of $234.11 and a 200 day moving average price of $216.71.

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

Williams-Sonoma Dividend Announcement

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

Insider Buying and Selling

In other Williams-Sonoma news, CFO Jeffrey Howie sold 3,045 shares of the firm's stock in a transaction dated Wednesday, September 16th. The shares were sold at an average price of $220.61, for a total value of $671,757.45. Following the completion of 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. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Karalyn Yearout sold 522 shares of the business's stock in a transaction on Friday, October 9th. The shares were sold at an average price of $239.36, for a total value of $124,945.92. Following the transaction, the executive vice president owned 19,673 shares of the company's stock, valued at approximately $4,708,929.28. The trade was a 2.58% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 40,089 shares of company stock worth $8,917,319 over the last three months. 1.10% of the stock is owned by insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. V Square Quantitative Management LLC boosted its holdings in shares of Williams-Sonoma by 5.1% in the 3rd quarter. V Square Quantitative Management LLC now owns 4,372 shares of the specialty retailer's stock valued at $997,000 after buying an additional 213 shares in the last quarter. Wealth Enhancement Trust Services Inc. raised its holdings in shares of Williams-Sonoma by 72.1% during the third quarter. Wealth Enhancement Trust Services Inc. now owns 451 shares of the specialty retailer's stock worth $103,000 after purchasing an additional 189 shares during the last quarter. Eastern Bank lifted its position in Williams-Sonoma by 10.6% during the third quarter. Eastern Bank now owns 752 shares of the specialty retailer's stock valued at $171,000 after purchasing an additional 72 shares during the period. QRG Capital Management Inc. lifted its position in Williams-Sonoma by 3.4% during the second quarter. QRG Capital Management Inc. now owns 12,904 shares of the specialty retailer's stock valued at $3,008,000 after purchasing an additional 419 shares during the period. Finally, Envestnet Asset Management Inc. lifted its position in Williams-Sonoma by 5.2% during the second quarter. Envestnet Asset Management Inc. now owns 461,832 shares of the specialty retailer's stock valued at $107,652,000 after purchasing an additional 22,833 shares during the period. 99.29% of the stock is currently owned by institutional investors.

About Williams-Sonoma

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

Its products include cookware, cutlery, appliances, tabletop goods, furniture, bedding, bath products, lighting, rugs, textiles, decorative accessories, gifts and personalized items.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.