Worthington Enterprises (NYSE:WOR) Trading Up 7.9% - Here's Why

Key Points

• Worthington Enterprises shares surged 7.9% to about $58.68, despite trading volume running 72% below its average.
• Analysts have a mixed but generally positive view: the stock carries a “Moderate Buy” consensus rating and a $65.50 average price target, although one analyst downgraded it to “Hold.”
• The company’s latest quarterly results missed earnings and revenue estimates, but revenue still rose 16.9% year over year. Worthington also increased its quarterly dividend to $0.20 per share, implying a 1.3% yield.

Worthington Enterprises, Inc. (NYSE:WOR - Get Free Report)'s share price rose 7.9% during trading on Wednesday . The company traded as high as $59.79 and last traded at $58.6750. Approximately 62,326 shares traded hands during mid-day trading, a decline of 72% from the average daily volume of 222,182 shares. The stock had previously closed at $54.36.

Analysts Set New Price Targets

Several analysts have weighed in on WOR shares. Wall Street Zen lowered shares of Worthington Enterprises from a "buy" rating to a "hold" rating in a research note on Saturday, June 27th. Canaccord Genuity Group decreased their price target on shares of Worthington Enterprises from $69.00 to $67.00 and set a "buy" rating for the company in a report on Thursday, June 25th. Finally, Weiss Ratings reaffirmed a "hold (c)" rating on shares of Worthington Enterprises in a research report on Friday, July 17th. Two investment analysts have rated the stock with a Buy rating and one has issued a Hold rating to the stock. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and an average price target of $65.50.

Worthington Enterprises Trading Up 9.4%

The firm has a market cap of $2.91 billion, a P/E ratio of 18.99 and a beta of 1.30. The company has a debt-to-equity ratio of 0.30, a quick ratio of 1.43 and a current ratio of 2.37. The firm has a fifty day moving average of $57.06 and a 200-day moving average of $55.35.

Worthington Enterprises (NYSE:WOR - Get Free Report) last issued its earnings results on Tuesday, June 23rd. The industrial products company reported $0.97 earnings per share for the quarter, missing the consensus estimate of $1.04 by ($0.07). The company had revenue of $371.46 million during the quarter, compared to analyst estimates of $386.49 million. Worthington Enterprises had a return on equity of 16.79% and a net margin of 11.30%.Worthington Enterprises's quarterly revenue was up 16.9% on a year-over-year basis. During the same period in the prior year, the business earned $1.06 earnings per share. Equities research analysts forecast that Worthington Enterprises, Inc. will post 3.85 earnings per share for the current year.

Worthington Enterprises Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 29th. Investors of record on Tuesday, September 15th will be issued a $0.20 dividend. This is a boost from Worthington Enterprises's previous quarterly dividend of $0.19. The ex-dividend date of this dividend is Tuesday, September 15th. This represents a $0.80 dividend on an annualized basis and a dividend yield of 1.3%. Worthington Enterprises's dividend payout ratio is 24.20%.

Insider Buying and Selling at Worthington Enterprises

In related news, major shareholder John McConnell sold 17,625 shares of Worthington Enterprises stock in a transaction dated Wednesday, July 1st. The shares were sold at an average price of $53.04, for a total value of $934,830.00. Following the sale, the insider directly owned 1,335,648 shares in the company, valued at $70,842,769.92. This trade represents a 1.30% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. 2.50% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Worthington Enterprises

Large investors have recently made changes to their positions in the company. WINTON GROUP Ltd bought a new stake in shares of Worthington Enterprises during the second quarter valued at approximately $308,000. Nykredit A S bought a new position in Worthington Enterprises in the 2nd quarter worth approximately $30,000. VELA Investment Management LLC grew its holdings in Worthington Enterprises by 5.1% in the 2nd quarter. VELA Investment Management LLC now owns 222,561 shares of the industrial products company's stock worth $11,965,000 after buying an additional 10,760 shares in the last quarter. Hsbc Holdings PLC acquired a new stake in Worthington Enterprises in the 2nd quarter valued at approximately $1,115,000. Finally, Empowered Funds LLC acquired a new stake in Worthington Enterprises in the 2nd quarter valued at approximately $256,000. Institutional investors and hedge funds own 51.59% of the company's stock.

About Worthington Enterprises

Worthington Enterprises, Inc NYSE: WOR is a diversified manufacturer and branded products company focused primarily on consumer and building-product markets. The company develops, manufactures and markets products used by consumers, contractors and other professional customers.

Its consumer products activities include outdoor living, lawn and garden, tools and related products. Its portfolio has included brands such as Bernzomatic, Balloon Time, Mag-Torch and General Tools, although its product portfolio may change as the company manages its businesses and brands.

Worthington Enterprises also participates in the building-products industry, supplying products used in commercial and residential construction.

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