Williams-Sonoma (NYSE:WSM) Shares Gap Down After Insider Selling

Key Points

• Williams-Sonoma's shares gapped down after insider selling, with stock prices opening at $196.97, down from the previous close of $201.35.
• Executive Vice President Karalyn Yearout sold 3,500 shares at an average price of $198.79, representing a 20% decrease in her ownership.
• Recent analyst ratings indicate a consensus of "Moderate Buy" with targets ranging from $200.00 to $215.00, despite a current stock trading value below the lower end of this spectrum.

Williams-Sonoma, Inc. (NYSE:WSM - Get Free Report)'s stock price gapped down before the market opened on Monday after an insider sold shares in the company. The stock had previously closed at $201.35, but opened at $196.97. Williams-Sonoma shares last traded at $193.33, with a volume of 190,634 shares.

Specifically, EVP Karalyn Yearout sold 3,500 shares of the stock in a transaction dated Wednesday, September 24th. The stock was sold at an average price of $198.79, for a total value of $695,765.00. Following the completion of the transaction, the executive vice president directly owned 14,003 shares in the company, valued at approximately $2,783,656.37. This trade represents a 20.00% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link.

Wall Street Analyst Weigh In

Several research firms recently commented on WSM. Royal Bank Of Canada raised their target price on Williams-Sonoma from $212.00 to $213.00 and gave the stock an "outperform" rating in a research note on Thursday, August 28th. Argus set a $212.00 price target on Williams-Sonoma in a report on Tuesday, September 2nd. UBS Group set a $200.00 price target on Williams-Sonoma in a report on Thursday, August 28th. Gordon Haskett upgraded Williams-Sonoma from a "hold" rating to a "buy" rating and set a $205.00 price target on the stock in a report on Wednesday, July 23rd. Finally, Telsey Advisory Group restated an "outperform" rating and issued a $215.00 target price on shares of Williams-Sonoma in a research note on Thursday, August 28th. Two investment analysts have rated the stock with a Strong Buy rating, seven have assigned a Buy rating, ten have issued a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $199.11.

Williams-Sonoma Trading Down 4.2%

The firm has a 50 day simple moving average of $196.28 and a 200 day simple moving average of $172.66. The firm has a market capitalization of $23.49 billion, a PE ratio of 21.19, a P/E/G ratio of 3.25 and a beta of 1.52.

Williams-Sonoma (NYSE:WSM - Get Free Report) last issued its earnings results on Wednesday, August 27th. The specialty retailer reported $2.00 EPS for the quarter, beating the consensus estimate of $1.79 by $0.21. The business had revenue of $1.84 billion for the quarter, compared to the consensus estimate of $1.82 billion. Williams-Sonoma had a return on equity of 54.47% and a net margin of 14.54%.The company's revenue was up 2.7% compared to the same quarter last year. During the same period last year, the business posted $1.74 EPS. Williams-Sonoma has set its FY 2025 guidance at EPS. Research analysts forecast that Williams-Sonoma, Inc. will post 8.36 earnings per share for the current year.

Williams-Sonoma Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, November 21st. Investors of record on Friday, October 17th will be issued a $0.66 dividend. This represents a $2.64 dividend on an annualized basis and a yield of 1.4%. The ex-dividend date of this dividend is Friday, October 17th. Williams-Sonoma's dividend payout ratio (DPR) is currently 29.04%.

Institutional Investors Weigh In On Williams-Sonoma

Institutional investors and hedge funds have recently bought and sold shares of the business. Vanguard Group Inc. increased its holdings in shares of Williams-Sonoma by 21.8% in the first quarter. Vanguard Group Inc. now owns 15,630,310 shares of the specialty retailer's stock worth $2,471,152,000 after purchasing an additional 2,797,562 shares during the last quarter. Norges Bank bought a new position in Williams-Sonoma in the second quarter worth approximately $212,107,000. Nuveen LLC bought a new position in Williams-Sonoma in the first quarter worth approximately $85,075,000. Robeco Institutional Asset Management B.V. lifted its holdings in Williams-Sonoma by 740.4% during the second quarter. Robeco Institutional Asset Management B.V. now owns 591,690 shares of the specialty retailer's stock worth $96,664,000 after buying an additional 521,283 shares during the period. Finally, Pacer Advisors Inc. lifted its holdings in Williams-Sonoma by 1,272.6% during the first quarter. Pacer Advisors Inc. now owns 512,846 shares of the specialty retailer's stock worth $81,081,000 after buying an additional 475,484 shares during the period. 99.29% of the stock is owned by institutional investors.

About Williams-Sonoma

Williams-Sonoma, Inc operates as an omni-channel specialty retailer of various products for home. It offers cooking, dining, and entertaining products, such as cookware, tools, electrics, cutlery, tabletop and bar, outdoor, furniture, and a library of cookbooks under the Williams Sonoma Home brand, as well as home furnishings and decorative accessories under the Williams Sonoma lifestyle brand; and furniture, bedding, lighting, rugs, table essentials, and decorative accessories under the Pottery Barn brand.

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