WD-40 (NASDAQ:WDFC) Shares Down 4.7% After Analyst Downgrade

Key Points

• Shares fell 4.7% after DA Davidson cut its price target from $300 to $270 but kept a buy rating; mid-day volume was up ~12% and the stock traded around $204 versus a prior close of $214.
• WD-40 beat quarterly expectations with EPS of $1.50 (vs. $1.39) and revenue of $161.7M (vs. $154.9M), revenue up 10.7%, while analysts hold a consensus "Moderate Buy" and an average price target of $270.
• Director David Pendarvis bought 424 shares at $247.15, and the company declared a $1.02 quarterly dividend (annualized $4.08, yield ~2.0%).

WD-40 Company (NASDAQ:WDFC - Get Free Report) shares were down 4.7% on Monday after DA Davidson lowered their price target on the stock from $300.00 to $270.00. DA Davidson currently has a buy rating on the stock. WD-40 traded as low as $202.91 and last traded at $204.03. Approximately 204,567 shares changed hands during mid-day trading, an increase of 12% from the average daily volume of 183,227 shares. The stock had previously closed at $214.01.

A number of other research firms have also commented on WDFC. Weiss Ratings restated a "hold (c)" rating on shares of WD-40 in a research report on Wednesday, January 21st. William Blair assumed coverage on shares of WD-40 in a report on Monday, April 6th. They set an "outperform" rating for the company. Two analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the stock. Based on data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average price target of $270.00.

Insider Buying and Selling at WD-40

In related news, Director David Pendarvis acquired 424 shares of the company's stock in a transaction that occurred on Thursday, February 5th. The stock was purchased at an average price of $247.15 per share, for a total transaction of $104,791.60. Following the transaction, the director directly owned 6,898 shares of the company's stock, valued at approximately $1,704,840.70. This trade represents a 6.55% increase in their position. The acquisition was disclosed in a document filed with the SEC, which is available at this hyperlink. 0.78% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On WD-40

A number of institutional investors and hedge funds have recently made changes to their positions in WDFC. Hsbc Holdings PLC bought a new position in WD-40 in the fourth quarter valued at about $637,000. Rockefeller Capital Management L.P. raised its holdings in WD-40 by 7.7% during the 4th quarter. Rockefeller Capital Management L.P. now owns 1,087 shares of the specialty chemicals company's stock worth $214,000 after purchasing an additional 78 shares during the last quarter. Corient Private Wealth LLC lifted its position in WD-40 by 52.0% during the 4th quarter. Corient Private Wealth LLC now owns 9,518 shares of the specialty chemicals company's stock valued at $1,874,000 after purchasing an additional 3,257 shares during the period. Caitong International Asset Management Co. Ltd boosted its stake in shares of WD-40 by 243.2% in the 4th quarter. Caitong International Asset Management Co. Ltd now owns 278 shares of the specialty chemicals company's stock valued at $55,000 after purchasing an additional 197 shares during the last quarter. Finally, Mercer Global Advisors Inc. ADV grew its position in shares of WD-40 by 76.3% during the 4th quarter. Mercer Global Advisors Inc. ADV now owns 1,946 shares of the specialty chemicals company's stock worth $383,000 after buying an additional 842 shares during the period. Institutional investors own 91.52% of the company's stock.

WD-40 Stock Performance

The stock's 50 day moving average is $228.33 and its two-hundred day moving average is $209.56. The firm has a market capitalization of $2.75 billion, a P/E ratio of 34.65 and a beta of 0.25. The company has a debt-to-equity ratio of 0.32, a current ratio of 2.83 and a quick ratio of 1.98.

WD-40 (NASDAQ:WDFC - Get Free Report) last released its earnings results on Thursday, April 9th. The specialty chemicals company reported $1.50 EPS for the quarter, topping analysts' consensus estimates of $1.39 by $0.11. The firm had revenue of $161.67 million during the quarter, compared to analyst estimates of $154.90 million. WD-40 had a net margin of 12.57% and a return on equity of 30.23%. The business's quarterly revenue was up 10.7% compared to the same quarter last year. During the same quarter in the previous year, the business earned $1.32 EPS. As a group, equities analysts anticipate that WD-40 Company will post 5.42 earnings per share for the current fiscal year.

WD-40 Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, April 30th. Stockholders of record on Friday, April 17th will be paid a $1.02 dividend. The ex-dividend date of this dividend is Friday, April 17th. This represents a $4.08 dividend on an annualized basis and a dividend yield of 2.0%. WD-40's dividend payout ratio is 69.39%.

WD-40 Company Profile

WD-40 Company, headquartered in San Diego, California, is best known for its flagship WD-40® Multi-Use Product, a water-displacing spray used for lubrication, rust prevention and cleaning. Since its introduction in 1953 by the Rocket Chemical Company, the WD-40 brand has become a household and industrial staple. Over time, the company has broadened its portfolio to include complementary maintenance and cleaning brands such as 3-IN-ONE® oils, Lava® hand cleaners, Solvol® solvents, Spot Shot® stain removers and X-14® cleaning products.

WD-40 Company distributes its products in more than 176 countries through retail, industrial and automotive channels.

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