Woodward, Inc. (NASDAQ:WWD) Sees Significant Growth in Short Interest

Key Points

• Short interest in Woodward surged 76.3% in May to 1.38 million shares, representing about 2.3% of the float and a 2.1-day short-interest ratio.
• The stock fell 1.5% in trading to $344.83, while the company continues to trade near its 200-day moving average and within a wide 52-week range of $213.46 to $407.00.
• Woodward reported strong quarterly results, including EPS of $2.27 versus $2.10 expected and revenue of $1.09 billion, while also announcing a quarterly dividend of $0.32 per share.

Woodward, Inc. (NASDAQ:WWD - Get Free Report) was the target of a significant increase in short interest during the month of May. As of May 15th, there was short interest totaling 1,384,338 shares, an increase of 76.3% from the April 30th total of 785,234 shares. Approximately 2.3% of the company's shares are short sold. Based on an average daily trading volume, of 652,048 shares, the short-interest ratio is currently 2.1 days.

Woodward Stock Down 1.5%

Shares of NASDAQ WWD traded down $5.20 during mid-day trading on Tuesday, reaching $344.83. The company had a trading volume of 844,364 shares, compared to its average volume of 632,594. The stock has a fifty day moving average of $367.82 and a two-hundred day moving average of $344.97. The company has a debt-to-equity ratio of 0.18, a quick ratio of 1.19 and a current ratio of 1.73. The company has a market capitalization of $20.55 billion, a price-to-earnings ratio of 41.47, a PEG ratio of 2.09 and a beta of 0.92. Woodward has a 12-month low of $213.46 and a 12-month high of $407.00.

Woodward (NASDAQ:WWD - Get Free Report) last issued its quarterly earnings data on Wednesday, April 29th. The technology company reported $2.27 earnings per share for the quarter, beating the consensus estimate of $2.10 by $0.17. Woodward had a net margin of 12.85% and a return on equity of 20.12%. The firm had revenue of $1.09 billion for the quarter, compared to analyst estimates of $1.01 billion. During the same quarter last year, the firm earned $1.69 earnings per share. The company's revenue for the quarter was up 23.4% on a year-over-year basis. Woodward has set its FY 2026 guidance at 9.150-9.450 EPS. As a group, equities research analysts expect that Woodward will post 9.34 EPS for the current year.

Woodward Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, June 4th. Shareholders of record on Thursday, May 21st will be issued a dividend of $0.32 per share. The ex-dividend date of this dividend is Thursday, May 21st. This represents a $1.28 dividend on an annualized basis and a dividend yield of 0.4%. Woodward's dividend payout ratio (DPR) is presently 15.33%.

Analyst Ratings Changes

WWD has been the subject of several recent research reports. Wells Fargo & Company initiated coverage on shares of Woodward in a research report on Wednesday, April 1st. They set an "overweight" rating and a $440.00 price target for the company. TD Cowen upped their price target on shares of Woodward from $350.00 to $390.00 and gave the stock a "hold" rating in a research report on Tuesday, February 3rd. The Goldman Sachs Group upped their price target on shares of Woodward from $362.00 to $408.00 and gave the stock a "buy" rating in a research report on Tuesday, February 3rd. Susquehanna began coverage on shares of Woodward in a research report on Tuesday, May 26th. They issued a "positive" rating and a $423.00 target price for the company. Finally, Jefferies Financial Group reiterated a "buy" rating and issued a $450.00 target price on shares of Woodward in a research report on Sunday, February 8th. One investment analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating and four have given a Hold rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average target price of $393.00.

Insider Activity at Woodward

In related news, EVP Karrie M. Bem sold 280 shares of the company's stock in a transaction that occurred on Thursday, May 14th. The shares were sold at an average price of $372.66, for a total transaction of $104,344.80. Following the transaction, the executive vice president owned 4,297 shares of the company's stock, valued at approximately $1,601,320.02. This represents a 6.12% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, CEO Charles P. Blankenship sold 5,000 shares of the business's stock in a transaction that occurred on Monday, March 9th. The shares were sold at an average price of $367.40, for a total transaction of $1,837,000.00. Following the completion of the sale, the chief executive officer owned 65,854 shares of the company's stock, valued at approximately $24,194,759.60. The trade was a 7.06% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 13,554 shares of company stock worth $5,106,920 in the last three months. Insiders own 0.71% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in the stock. Norges Bank bought a new position in shares of Woodward in the fourth quarter valued at about $251,365,000. Artisan Partners Limited Partnership bought a new position in shares of Woodward in the third quarter valued at about $184,721,000. Invesco Ltd. raised its holdings in shares of Woodward by 122.0% in the third quarter. Invesco Ltd. now owns 905,578 shares of the technology company's stock valued at $228,849,000 after buying an additional 497,722 shares during the last quarter. Findlay Park Partners LLP raised its holdings in shares of Woodward by 136.2% in the fourth quarter. Findlay Park Partners LLP now owns 686,200 shares of the technology company's stock valued at $207,452,000 after buying an additional 395,726 shares during the last quarter. Finally, Two Sigma Investments LP raised its holdings in shares of Woodward by 1,086.9% in the third quarter. Two Sigma Investments LP now owns 330,514 shares of the technology company's stock valued at $83,524,000 after buying an additional 302,666 shares during the last quarter. 81.18% of the stock is owned by institutional investors.

About Woodward

Woodward, Inc NASDAQ: WWD is a global leader in the design, manufacture and service of control systems and components for the aerospace and industrial markets. Founded in 1870 and headquartered in Fort Collins, Colorado, the company specializes in motion control, fuel systems, actuation, and digital control solutions. Its offerings enable precision management of flow, pressure and motion in critical applications ranging from aircraft engines and power turbines to hydraulic systems.

Woodward's product portfolio is organized into two primary segments: Aerospace and Industrial.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.