Williams-Sonoma (NYSE:WSM) Shares Break Above 200 Day Moving Average - What's Next?

Key Points

• Williams-Sonoma shares broke above their 200-day moving average, reaching $246.43 before closing at $242.31, compared with the average of $213.67.
• Analysts maintain a generally positive outlook, with a “Moderate Buy” consensus from 18 analysts and an average price target of $245.56; targets range up to $275.
• The company reported quarterly EPS of $2.10 and revenue of $1.96 billion, exceeding estimates, while declaring a quarterly dividend of $0.76 per share, or a 1.3% annualized yield.

Williams-Sonoma, Inc. (NYSE:WSM - Get Free Report) shares passed above its two hundred day moving average during trading on Tuesday. The stock has a two hundred day moving average of $213.67 and traded as high as $246.43. Williams-Sonoma shares last traded at $242.31, with a volume of 1,171,690 shares changing hands.

Analyst Upgrades and Downgrades

Several brokerages have recently commented on WSM. TD Cowen reaffirmed a "buy" rating on shares of Williams-Sonoma in a research report on Monday, August 10th. Morgan Stanley boosted their target price on shares of Williams-Sonoma from $210.00 to $240.00 and gave the company an "equal weight" rating in a research report on Thursday, August 27th. Jefferies Financial Group set a $275.00 target price on shares of Williams-Sonoma in a research note on Wednesday, August 26th. Evercore set a $245.00 price target on shares of Williams-Sonoma in a report on Thursday, August 27th. Finally, UBS Group reaffirmed a "neutral" rating and issued a $247.00 price target (up from $190.00) 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 stock. According to MarketBeat.com, the company has an average rating of "Moderate Buy" and an average price target of $245.56.

Williams-Sonoma Stock Up 1.5%

The stock has a 50 day simple moving average of $233.84 and a 200 day simple moving average of $213.67. The stock has a market cap of $28.54 billion, a price-to-earnings ratio of 24.80, a PEG ratio of 2.59 and a beta of 1.48.

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

Williams-Sonoma Announces Dividend

The firm also recently declared 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 dividend on an annualized basis and a yield of 1.3%. The ex-dividend date is Friday, October 16th. Williams-Sonoma's payout ratio is 31.12%.

Insiders Place Their Bets

In other news, EVP Karalyn Yearout sold 1,000 shares of the business's stock in a transaction dated Tuesday, August 4th. The shares were sold at an average price of $250.00, for a total transaction of $250,000.00. Following the completion of the sale, the executive vice president directly owned 20,717 shares of the company's stock, valued at $5,179,250. The trade was a 4.60% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Jeffrey Howie sold 3,045 shares of the business's stock in a transaction dated 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 directly owned 34,138 shares of the company's stock, valued at approximately $7,531,184.18. The trade was 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. Over the last 90 days, insiders have sold 39,567 shares of company stock worth $8,792,373. Insiders own 1.10% of the company's stock.

Hedge Funds Weigh In On Williams-Sonoma

A number of hedge funds have recently added to or reduced their stakes in WSM. Eastern Bank increased its holdings in Williams-Sonoma by 10.6% during the 3rd quarter. Eastern Bank now owns 752 shares of the specialty retailer's stock worth $171,000 after purchasing an additional 72 shares in the last quarter. QRG Capital Management Inc. raised its stake in shares of Williams-Sonoma by 3.4% in the second quarter. QRG Capital Management Inc. now owns 12,904 shares of the specialty retailer's stock worth $3,008,000 after purchasing an additional 419 shares during the last quarter. Envestnet Asset Management Inc. lifted its holdings in shares of Williams-Sonoma by 5.2% in 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 in the last quarter. State Street Corp lifted its holdings in shares of Williams-Sonoma by 1.9% in the second quarter. State Street Corp now owns 5,906,785 shares of the specialty retailer's stock valued at $1,376,872,000 after purchasing an additional 112,683 shares in the last quarter. Finally, Sequoia Financial Advisors LLC boosted its position in shares of Williams-Sonoma by 2.0% during the second quarter. Sequoia Financial Advisors LLC now owns 67,858 shares of the specialty retailer's stock valued at $15,818,000 after buying an additional 1,299 shares during the last quarter. Institutional investors and hedge funds own 99.29% of the company's stock.

Williams-Sonoma Company Profile

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.

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