Williams-Sonoma (NYSE:WSM) Reaches New 1-Year High Following Dividend Announcement

Key Points

• Williams-Sonoma shares hit a new 52-week high after the company announced a dividend, with the stock trading as high as $222.50 and ending the day up about 1.3%.
• The company declared a $0.76 per share dividend payable on August 21 to shareholders of record on July 17, implying a 1.4% annualized yield and a 29.56% payout ratio.
• Recent results were solid, as Williams-Sonoma beat quarterly earnings and revenue estimates with EPS of $1.93 versus $1.80 expected and revenue of $1.81 billion, while analysts maintain a Moderate Buy consensus.

Shares of Williams-Sonoma, Inc. (NYSE:WSM - Get Free Report) reached a new 52-week high during trading on Friday after the company announced a dividend. The stock traded as high as $222.50 and last traded at $221.1040, with a volume of 131013 shares changing hands. The stock had previously closed at $218.74.The newly announced dividend which will be paid on Friday, August 21st. Stockholders of record on Friday, July 17th will be given a dividend of $0.76 per share. This represents a $3.04 annualized dividend and a dividend yield of 1.4%. The ex-dividend date is Friday, July 17th. Williams-Sonoma's payout ratio is currently 29.56%.

Wall Street Analyst Weigh In

Several research analysts have recently issued reports on WSM shares. TD Cowen lowered their target price on shares of Williams-Sonoma from $250.00 to $225.00 and set a "buy" rating for the company in a report on Thursday, March 19th. Weiss Ratings lowered shares of Williams-Sonoma from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Tuesday, June 2nd. Citigroup decreased their price objective 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. Robert W. Baird dropped their price objective on Williams-Sonoma from $235.00 to $225.00 and set an "outperform" rating on the stock in a report on Thursday, March 19th. Finally, Argus set a $230.00 target price on Williams-Sonoma in a research report on Friday, May 29th. One equities research analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating and nine have issued a Hold rating to the stock. According to MarketBeat.com, Williams-Sonoma currently has a consensus rating of "Moderate Buy" and an average target price of $211.47.

Williams-Sonoma Trading Up 1.3%

The stock has a market cap of $26.10 billion, a price-to-earnings ratio of 24.78, a PEG ratio of 2.44 and a beta of 1.51. The stock's 50 day moving average is $190.93 and its two-hundred day moving average is $193.50.

Williams-Sonoma (NYSE:WSM - Get Free Report) last announced its earnings results on Thursday, May 21st. The specialty retailer reported $1.93 EPS for the quarter, beating analysts' consensus estimates of $1.80 by $0.13. Williams-Sonoma had a net margin of 13.81% and a return on equity of 53.29%. The business had revenue of $1.81 billion during the quarter, compared to analysts' expectations of $1.80 billion. During the same period in the prior year, the company earned $1.85 earnings per share. The business's revenue was up 4.4% compared to the same quarter last year. On average, sell-side analysts predict that Williams-Sonoma, Inc. will post 9.34 EPS for the current year.

Insider Buying and Selling at Williams-Sonoma

In related news, CFO Jeffrey Howie sold 32,684 shares of the stock in a transaction on Thursday, March 26th. The stock was sold at an average price of $180.64, for a total transaction of $5,904,037.76. Following the completion of the sale, the chief financial officer directly owned 34,138 shares of the company's stock, valued at $6,166,688.32. This trade represents a 48.91% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, EVP Karalyn Yearout sold 2,267 shares of the business's stock in a transaction on Wednesday, April 8th. The shares were sold at an average price of $192.49, for a total transaction of $436,374.83. Following the completion of the transaction, the executive vice president directly owned 23,351 shares in the company, valued at $4,494,833.99. This represents a 8.85% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders have sold 106,892 shares of company stock worth $19,826,826. 1.10% of the stock is currently owned by insiders.

Institutional Trading of Williams-Sonoma

Several hedge funds and other institutional investors have recently made changes to their positions in WSM. Brighton Jones LLC boosted its holdings in Williams-Sonoma by 22.4% in the 4th quarter. Brighton Jones LLC now owns 6,742 shares of the specialty retailer's stock valued at $1,248,000 after purchasing an additional 1,236 shares in the last quarter. Bison Wealth LLC acquired a new stake in shares of Williams-Sonoma in the 4th quarter valued at approximately $227,000. Woodline Partners LP purchased a new stake in shares of Williams-Sonoma in the first quarter valued at approximately $1,644,000. Guggenheim Capital LLC grew its holdings in Williams-Sonoma by 9.0% during the second quarter. Guggenheim Capital LLC now owns 4,153 shares of the specialty retailer's stock worth $678,000 after acquiring an additional 342 shares during the period. Finally, Brown Advisory Inc. raised its position in Williams-Sonoma by 5.9% in the second 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. Hedge funds and other 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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