Williams-Sonoma (NYSE:WSM) Hits New 52-Week High - Still a Buy?

Key Points

• Williams-Sonoma shares hit a new 52-week high, trading as high as $234.89 after rising 5.3%. The stock is now well above its 50-day and 200-day moving averages.
• The company reported better-than-expected quarterly results, with EPS of $1.93 versus $1.80 expected and revenue of $1.81 billion, up 4.4% year over year. Analysts still view the stock favorably overall, with a consensus rating of Moderate Buy.
• Williams-Sonoma also declared a quarterly dividend of $0.76 per share, payable August 21, implying an annual yield of about 1.3%. Insider selling was noted, including recent sales by the CFO and CEO.

Williams-Sonoma, Inc. (NYSE:WSM - Get Free Report)'s share price reached a new 52-week high on Wednesday . The company traded as high as $234.89 and last traded at $235.1560, with a volume of 39911 shares traded. The stock had previously closed at $226.14.

Analyst Upgrades and Downgrades

WSM has been the subject of several recent analyst reports. Telsey Advisory Group restated an "outperform" rating and set a $225.00 target price (up from $220.00) on shares of Williams-Sonoma in a research note on Friday, May 22nd. TD Cowen dropped their target price on shares of Williams-Sonoma from $250.00 to $225.00 and set a "buy" rating on the stock in a research report on Thursday, March 19th. Citigroup cut their target price on shares of Williams-Sonoma from $208.00 to $200.00 and set a "neutral" rating for the company in a research note on Tuesday, May 12th. Weiss Ratings lowered shares of Williams-Sonoma from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Tuesday, June 2nd. Finally, Bank of America initiated coverage on shares of Williams-Sonoma in a report on Friday, June 12th. They set a "buy" rating and a $250.00 price objective on the stock. One investment analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating and nine have assigned a Hold rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $211.47.

Williams-Sonoma Stock Up 5.3%

The stock has a market cap of $28.03 billion, a price-to-earnings ratio of 26.65, a price-to-earnings-growth ratio of 2.48 and a beta of 1.51. The company's 50-day moving average is $197.54 and its 200-day moving average is $196.08.

Williams-Sonoma (NYSE:WSM - Get Free Report) last released its quarterly earnings data on Thursday, May 21st. The specialty retailer reported $1.93 earnings per share for the quarter, beating the consensus estimate of $1.80 by $0.13. The company had revenue of $1.81 billion for the quarter, compared to analyst estimates of $1.80 billion. Williams-Sonoma had a return on equity of 53.29% and a net margin of 13.81%.The company's revenue was up 4.4% compared to the same quarter last year. During the same period in the prior year, the company posted $1.85 EPS. On average, research analysts forecast that Williams-Sonoma, Inc. will post 9.37 earnings per share for the current year.

Williams-Sonoma Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, August 21st. Investors of record on Friday, July 17th will be issued a dividend of $0.76 per share. This represents a $3.04 annualized dividend and a yield of 1.3%. The ex-dividend date of this dividend is Friday, July 17th. Williams-Sonoma's dividend payout ratio (DPR) is currently 22.17%.

Insider Buying and Selling at Williams-Sonoma

In other Williams-Sonoma news, CFO Jeffrey Howie sold 32,684 shares of the company's stock in a transaction dated Thursday, March 26th. The shares were sold at an average price of $180.64, for a total transaction of $5,904,037.76. Following the sale, the chief financial officer directly owned 34,138 shares of the company's stock, valued at approximately $6,166,688.32. This represents a 48.91% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, CEO Laura Alber sold 20,000 shares of Williams-Sonoma stock in a transaction that occurred on Thursday, May 14th. The shares were sold at an average price of $172.61, for a total transaction of $3,452,200.00. Following the completion of the transaction, the chief executive officer owned 938,524 shares of the company's stock, valued at $161,998,627.64. This trade represents a 2.09% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 88,004 shares of company stock worth $16,420,107 over the last ninety days. Corporate insiders own 1.10% of the company's stock.

Institutional Investors Weigh In On Williams-Sonoma

A number of hedge funds have recently added to or reduced their stakes in the stock. Caitong International Asset Management Co. Ltd acquired a new stake in shares of Williams-Sonoma in the fourth quarter valued at approximately $25,000. Atlantic Union Bankshares Corp raised its position in shares of Williams-Sonoma by 51.5% during the 4th quarter. Atlantic Union Bankshares Corp now owns 147 shares of the specialty retailer's stock valued at $26,000 after acquiring an additional 50 shares during the last quarter. MidFirst Bank acquired a new position in shares of Williams-Sonoma in the 4th quarter valued at $30,000. Ballast Advisors LLC bought a new position in shares of Williams-Sonoma in the 1st quarter worth $30,000. Finally, Millstone Evans Group LLC grew its stake in shares of Williams-Sonoma by 229.4% during the first quarter. Millstone Evans Group LLC now owns 168 shares of the specialty retailer's stock worth $31,000 after purchasing an additional 117 shares during the period. Institutional investors own 99.29% of the company's stock.

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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