Stanley Black & Decker (NYSE:SWK) Shares Gap Down - Should You Sell?

Key Points

• Stanley Black & Decker (NYSE:SWK) saw its shares gap down from a previous close of $73.93 to an opening at $68.22, with a current trading price of $68.12.
• Analysts have mixed ratings on the stock, with one sell rating, six hold ratings, and five buy ratings, resulting in an average rating of "Hold" and a price target of $93.40.
• The company announced an increase in its quarterly dividend to $0.83, with a yield of 4.89%, although its payout ratio stands high at 136.10%.

Stanley Black & Decker, Inc. (NYSE:SWK - Get Free Report) gapped down prior to trading on Tuesday . The stock had previously closed at $73.93, but opened at $68.22. Stanley Black & Decker shares last traded at $68.12, with a volume of 714,733 shares traded.

Analyst Upgrades and Downgrades

SWK has been the topic of a number of recent research reports. Wall Street Zen downgraded Stanley Black & Decker from a "buy" rating to a "hold" rating in a research report on Saturday, July 26th. Robert W. Baird raised their price objective on shares of Stanley Black & Decker from $65.00 to $78.00 and gave the stock a "neutral" rating in a research note on Tuesday, July 22nd. JPMorgan Chase & Co. cut their target price on shares of Stanley Black & Decker from $93.00 to $60.00 and set an "underweight" rating on the stock in a research note on Monday, May 5th. UBS Group reduced their target price on shares of Stanley Black & Decker from $120.00 to $100.00 and set a "buy" rating for the company in a research note on Tuesday, May 13th. Finally, Wells Fargo & Company boosted their target price on shares of Stanley Black & Decker from $70.00 to $75.00 and gave the stock an "equal weight" rating in a research report on Wednesday. One equities research analyst has rated the stock with a sell rating, six have issued a hold rating and five have issued a buy rating to the stock. According to MarketBeat, the stock has a consensus rating of "Hold" and a consensus target price of $91.10.

Stanley Black & Decker Stock Performance

The stock's 50-day moving average price is $68.45 and its 200-day moving average price is $73.18. The company has a debt-to-equity ratio of 0.52, a quick ratio of 0.36 and a current ratio of 1.04. The company has a market capitalization of $10.25 billion, a price-to-earnings ratio of 20.98, a P/E/G ratio of 1.29 and a beta of 1.18.

Stanley Black & Decker (NYSE:SWK - Get Free Report) last issued its earnings results on Tuesday, July 29th. The industrial products company reported $1.08 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.38 by $0.70. Stanley Black & Decker had a net margin of 3.15% and a return on equity of 7.76%. The company had revenue of $3.95 billion during the quarter, compared to analyst estimates of $4.01 billion. During the same quarter last year, the business posted $1.09 EPS. The company's revenue for the quarter was down 6.2% on a year-over-year basis. As a group, equities research analysts expect that Stanley Black & Decker, Inc. will post 5.16 earnings per share for the current year.

Stanley Black & Decker Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, September 16th. Shareholders of record on Tuesday, September 2nd will be given a dividend of $0.83 per share. This represents a $3.32 dividend on an annualized basis and a dividend yield of 5.0%. The ex-dividend date is Tuesday, September 2nd. This is a boost from Stanley Black & Decker's previous quarterly dividend of $0.82. Stanley Black & Decker's dividend payout ratio (DPR) is currently 136.10%.

Hedge Funds Weigh In On Stanley Black & Decker

Several institutional investors and hedge funds have recently added to or reduced their stakes in SWK. Allen Wealth Management LLC lifted its position in shares of Stanley Black & Decker by 0.9% during the second quarter. Allen Wealth Management LLC now owns 18,659 shares of the industrial products company's stock valued at $1,264,000 after purchasing an additional 160 shares in the last quarter. Vontobel Holding Ltd. raised its holdings in Stanley Black & Decker by 3.8% in the 1st quarter. Vontobel Holding Ltd. now owns 4,494 shares of the industrial products company's stock worth $345,000 after purchasing an additional 165 shares in the last quarter. Parallel Advisors LLC increased its stake in Stanley Black & Decker by 15.0% during the 2nd quarter. Parallel Advisors LLC now owns 1,313 shares of the industrial products company's stock valued at $89,000 after purchasing an additional 171 shares in the last quarter. D.A. Davidson & CO. boosted its holdings in shares of Stanley Black & Decker by 2.4% in the second quarter. D.A. Davidson & CO. now owns 7,324 shares of the industrial products company's stock worth $496,000 after buying an additional 172 shares during the last quarter. Finally, Allen Mooney & Barnes Investment Advisors LLC raised its stake in Stanley Black & Decker by 0.7% during the 1st quarter. Allen Mooney & Barnes Investment Advisors LLC now owns 24,854 shares of the industrial products company's stock worth $1,911,000 after acquiring an additional 174 shares during the period. 87.77% of the stock is currently owned by institutional investors and hedge funds.

About Stanley Black & Decker

Stanley Black & Decker, Inc engages in the provision of power and hand tools, and related accessories, products, services and equipment for oil and gas, infrastructure applications, commercial electronic security and monitoring systems, healthcare solutions, and mechanical access solutions. It operates through the Tools and Outdoor and Industrial segments.