Williams-Sonoma, Inc. (NYSE:WSM) Receives Average Recommendation of "Moderate Buy" from Brokerages

Key Points

• Eighteen brokerages give Williams‑Sonoma a consensus rating of Moderate Buy, with an average 12‑month target of $209.56 and several recent upgrades (Goldman Sachs raised its rating to buy and lifted its target to $218).
• In the latest quarter WSM reported EPS of $3.04, beating estimates of $2.90 while revenue fell 4.3% year‑over‑year to $2.36B; the stock trades near $198.78 with a market cap of $23.66B and a P/E of 22.46.
• The company increased its quarterly dividend to $0.76 (annualized $3.04, yield ~1.5%), while insiders — including the CEO and CFO — have sold shares recently (about 56,370 shares worth $10.27M over the last 90 days).

Williams-Sonoma, Inc. (NYSE:WSM - Get Free Report) has been given a consensus rating of "Moderate Buy" by the eighteen brokerages that are covering the firm, MarketBeat.com reports. Eight analysts have rated the stock with a hold rating, nine have issued a buy rating and one has assigned a strong buy rating to the company. The average 12-month target price among brokerages that have issued a report on the stock in the last year is $209.5625.

WSM has been the subject of a number of recent analyst reports. Zelman & Associates upgraded Williams-Sonoma from an "underperform" rating to a "neutral" rating and set a $205.00 price objective for the company in a report on Thursday, January 29th. Royal Bank Of Canada upped their target price on Williams-Sonoma from $206.00 to $214.00 and gave the stock an "outperform" rating in a report on Thursday, March 19th. UBS Group upped their target price on Williams-Sonoma from $175.00 to $185.00 and gave the stock a "neutral" rating in a report on Wednesday, March 11th. Evercore set a $200.00 target price on Williams-Sonoma in a report on Tuesday. Finally, The Goldman Sachs Group upgraded Williams-Sonoma from a "neutral" rating to a "buy" rating and upped their target price for the stock from $185.00 to $218.00 in a report on Monday, April 13th.

Williams-Sonoma Stock Up 3.8%

WSM opened at $198.78 on Friday. The business has a fifty day moving average of $193.72 and a 200 day moving average of $192.95. Williams-Sonoma has a 52-week low of $134.44 and a 52-week high of $222.00. The stock has a market cap of $23.66 billion, a P/E ratio of 22.46, a PEG ratio of 2.42 and a beta of 1.58.

Williams-Sonoma (NYSE:WSM - Get Free Report) last posted its quarterly earnings data on Wednesday, March 18th. The specialty retailer reported $3.04 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.90 by $0.14. Williams-Sonoma had a return on equity of 51.45% and a net margin of 13.94%.The company had revenue of $2.36 billion during the quarter, compared to analysts' expectations of $2.41 billion. During the same quarter in the previous year, the business earned $3.28 EPS. Williams-Sonoma's revenue was down 4.3% compared to the same quarter last year. Equities analysts anticipate that Williams-Sonoma will post 8.36 EPS for the current fiscal year.

Williams-Sonoma Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, May 22nd. Shareholders of record on Friday, April 17th will be issued a $0.76 dividend. The ex-dividend date is Friday, April 17th. This represents a $3.04 annualized dividend and a dividend yield of 1.5%. This is a positive change from Williams-Sonoma's previous quarterly dividend of $0.66. Williams-Sonoma's dividend payout ratio (DPR) is currently 29.83%.

Insiders Place Their Bets

In other Williams-Sonoma news, CFO Jeffrey Howie sold 1,419 shares of the company's stock in a transaction on Wednesday, April 8th. The stock was sold at an average price of $188.45, for a total value of $267,410.55. Following the completion of the sale, the chief financial officer directly owned 34,138 shares in the company, valued at approximately $6,433,306.10. This represents a 3.99% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Laura Alber sold 20,000 shares of the company's stock in a transaction on Monday, March 16th. The stock was sold at an average price of $183.04, for a total value of $3,660,800.00. Following the completion of the sale, the chief executive officer owned 786,537 shares of the company's stock, valued at $143,967,732.48. This represents a 2.48% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last ninety days, insiders sold 56,370 shares of company stock worth $10,268,623. 1.10% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several large investors have recently made changes to their positions in WSM. Brighton Jones LLC raised its position in shares of Williams-Sonoma by 22.4% in the 4th quarter. Brighton Jones LLC now owns 6,742 shares of the specialty retailer's stock worth $1,248,000 after acquiring an additional 1,236 shares in the last quarter. Bison Wealth LLC bought a new position in shares of Williams-Sonoma in the 4th quarter worth $227,000. Woodline Partners LP bought a new position in shares of Williams-Sonoma in the 1st quarter worth $1,644,000. Guggenheim Capital LLC raised its position in shares of Williams-Sonoma by 9.0% in the 2nd quarter. Guggenheim Capital LLC now owns 4,153 shares of the specialty retailer's stock worth $678,000 after acquiring an additional 342 shares in the last quarter. Finally, Brown Advisory Inc. raised its position in shares of Williams-Sonoma by 5.9% in the 2nd quarter. Brown Advisory Inc. now owns 4,631 shares of the specialty retailer's stock worth $757,000 after acquiring an additional 260 shares in the last quarter. 99.29% of the stock is owned by institutional investors.

About Williams-Sonoma

Williams‑Sonoma, Inc is a specialty retailer focused on the home and culinary markets, best known for premium cookware, kitchen tools and home furnishings. The company traces its roots to a single cookware store founded by Chuck Williams in 1956 in Sonoma, California, and has evolved into a multi‑brand home furnishings and housewares business. Its merchandise mix spans cookware and kitchen electrics, tabletop and food prep items, furniture, bedding, lighting and decorative accessories designed for both everyday use and higher‑end interiors.

The company operates a portfolio of consumer brands that target distinct segments of the home market.

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