Williams-Sonoma (NYSE:WSM) Reaches New 52-Week High - Here's Why

Key Points

• Williams-Sonoma shares hit a new 52-week high, trading as high as $234.42 before settling lower, extending a strong run for the specialty retailer.
• The company’s latest quarterly results were solid, with EPS of $1.93 beating estimates and revenue of $1.81 billion slightly ahead of expectations, while revenue rose 4.4% year over year.
• Williams-Sonoma also declared a quarterly dividend of $0.76 per share, and analysts currently see the stock as a Moderate Buy with an average target price of $211.47.

Shares of Williams-Sonoma, Inc. (NYSE:WSM - Get Free Report) hit a new 52-week high during trading on Thursday . The company traded as high as $234.42 and last traded at $221.5530, with a volume of 2020554 shares. The stock had previously closed at $227.18.

Wall Street Analyst Weigh In

WSM has been the subject of a number of research analyst reports. Wells Fargo & Company set a $190.00 price target on Williams-Sonoma and gave the stock an "equal weight" rating in a research note on Friday, May 22nd. Argus set a $230.00 price target on Williams-Sonoma in a research note on Friday, May 29th. Morgan Stanley set a $210.00 price target on Williams-Sonoma and gave the stock an "equal weight" rating in a research note on Friday, May 22nd. The Goldman Sachs Group raised Williams-Sonoma from a "neutral" rating to a "buy" rating and raised their price target for the stock from $185.00 to $218.00 in a research note on Monday, April 13th. Finally, Royal Bank Of Canada set a $192.00 price target on Williams-Sonoma and gave the stock an "outperform" rating in a research note on Friday, May 22nd. One equities research analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating and nine have issued a Hold rating to the company. According to MarketBeat, Williams-Sonoma has a consensus rating of "Moderate Buy" and an average target price of $211.47.

Williams-Sonoma Stock Down 2.5%

The business has a fifty day simple moving average of $194.36 and a 200-day simple moving average of $194.76. The firm has a market cap of $26.09 billion, a P/E ratio of 24.81, a P/E/G ratio of 2.46 and a beta of 1.51.

Williams-Sonoma (NYSE:WSM - Get Free Report) last posted its quarterly earnings data on Thursday, May 21st. The specialty retailer reported $1.93 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.80 by $0.13. The business had revenue of $1.81 billion during the quarter, compared to the consensus estimate of $1.80 billion. Williams-Sonoma had a return on equity of 53.29% and a net margin of 13.81%.The firm's quarterly revenue was up 4.4% compared to the same quarter last year. During the same quarter in the prior year, the company earned $1.85 earnings per share. On average, sell-side analysts anticipate that Williams-Sonoma, Inc. will post 9.49 EPS for the current fiscal year.

Williams-Sonoma Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, August 21st. Stockholders of record on Friday, July 17th will be issued a dividend of $0.76 per share. The ex-dividend date is Friday, July 17th. This represents a $3.04 annualized dividend and a dividend yield of 1.4%. Williams-Sonoma's dividend payout ratio (DPR) is presently 29.56%.

Insider Activity

In other news, CEO Laura Alber sold 20,000 shares of the firm's stock in a transaction on Thursday, May 14th. The stock was 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 directly owned 938,524 shares in the company, valued at $161,998,627.64. This trade represents a 2.09% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Jeffrey Howie sold 32,684 shares of the firm's stock in a transaction on Thursday, March 26th. The shares were sold at an average price of $180.64, for a total value of $5,904,037.76. Following the transaction, the chief financial officer owned 34,138 shares of the company's stock, valued at $6,166,688.32. The trade was a 48.91% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 88,004 shares of company stock worth $16,420,107 over the last three months. 1.10% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Williams-Sonoma

Institutional investors and hedge funds have recently modified their holdings of the stock. Caitong International Asset Management Co. Ltd bought a new position in shares of Williams-Sonoma during the fourth quarter valued at $25,000. Atlantic Union Bankshares Corp increased its holdings in shares of Williams-Sonoma by 51.5% during the fourth 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 in the last quarter. MidFirst Bank bought a new position in shares of Williams-Sonoma during the fourth quarter valued at $30,000. Millstone Evans Group LLC increased its holdings 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 valued at $31,000 after acquiring an additional 117 shares in the last quarter. Finally, DV Equities LLC bought a new position in shares of Williams-Sonoma during the fourth quarter valued at $31,000. 99.29% of the stock is currently owned by institutional investors.

Williams-Sonoma Company Profile

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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