Woodward (NASDAQ:WWD) Sets New 52-Week High Following Strong Earnings

Key Points

• Woodward's stock reached a new 52-week high of $266.43 following a strong earnings report, reporting $1.76 earnings per share versus an expectation of $1.62.
• The company announced a quarterly dividend of $0.28 per share, which will be paid on September 4th, translating to an annualized yield of 0.43%.
• Multiple analysts have raised their price targets for Woodward, with the current consensus price target set at $232.25, indicating a generally optimistic outlook on the stock.

Woodward, Inc. (NASDAQ:WWD - Get Free Report)'s stock price hit a new 52-week high on Tuesday following a better than expected earnings announcement. The company traded as high as $266.43 and last traded at $255.34, with a volume of 94886 shares trading hands. The stock had previously closed at $258.50.

The technology company reported $1.76 earnings per share for the quarter, beating the consensus estimate of $1.62 by $0.14. Woodward had a net margin of 11.32% and a return on equity of 16.57%. The firm had revenue of $915.45 million for the quarter, compared to analysts' expectations of $884.98 million. During the same quarter in the previous year, the company posted $1.63 EPS. The company's revenue was up 8.0% compared to the same quarter last year.

Woodward Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Thursday, September 4th. Shareholders of record on Thursday, August 21st will be issued a $0.28 dividend. The ex-dividend date is Thursday, August 21st. This represents a $1.12 dividend on an annualized basis and a yield of 0.42%. Woodward's dividend payout ratio (DPR) is 18.09%.

Analyst Upgrades and Downgrades

WWD has been the topic of a number of recent research reports. The Goldman Sachs Group raised their target price on Woodward from $229.00 to $255.00 and gave the company a "buy" rating in a research note on Monday, June 23rd. Wall Street Zen raised Woodward from a "hold" rating to a "buy" rating in a research note on Tuesday, April 29th. UBS Group lifted their price target on Woodward from $283.00 to $299.00 and gave the company a "buy" rating in a report on Tuesday. Wells Fargo & Company boosted their target price on Woodward from $175.00 to $193.00 and gave the stock an "equal weight" rating in a report on Wednesday, April 30th. Finally, Northcoast Research upgraded Woodward to a "hold" rating in a report on Friday, July 25th. Four analysts have rated the stock with a hold rating and six have given a buy rating to the company's stock. Based on data from MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus price target of $242.13.

Insider Buying and Selling

In other Woodward news, Director John D. Cohn sold 2,800 shares of Woodward stock in a transaction that occurred on Thursday, May 1st. The stock was sold at an average price of $191.52, for a total transaction of $536,256.00. Following the sale, the director directly owned 20,965 shares of the company's stock, valued at approximately $4,015,216.80. The trade was a 11.78% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, EVP Randall Hobbs sold 846 shares of Woodward stock in a transaction that occurred on Thursday, July 3rd. The shares were sold at an average price of $250.00, for a total value of $211,500.00. Following the sale, the executive vice president directly owned 48,981 shares in the company, valued at approximately $12,245,250. The trade was a 1.70% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 42,096 shares of company stock valued at $9,247,289 over the last three months. 0.82% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Woodward

Hedge funds have recently added to or reduced their stakes in the company. Naya Capital Management UK Ltd. lifted its stake in Woodward by 130.2% in the 4th quarter. Naya Capital Management UK Ltd. now owns 1,328,765 shares of the technology company's stock worth $221,133,000 after purchasing an additional 751,541 shares in the last quarter. Norges Bank purchased a new stake in Woodward in the 4th quarter worth about $120,220,000. GAMMA Investing LLC raised its position in Woodward by 44,162.8% in the 1st quarter. GAMMA Investing LLC now owns 472,284 shares of the technology company's stock worth $86,187,000 after purchasing an additional 471,217 shares during the period. Farallon Capital Management LLC grew its stake in Woodward by 31.8% in the 4th quarter. Farallon Capital Management LLC now owns 1,521,300 shares of the technology company's stock worth $253,175,000 after acquiring an additional 367,300 shares in the last quarter. Finally, Raymond James Financial Inc. bought a new position in Woodward in the 4th quarter worth about $31,187,000. 81.18% of the stock is currently owned by hedge funds and other institutional investors.

Woodward Price Performance

The company has a debt-to-equity ratio of 0.20, a quick ratio of 1.30 and a current ratio of 2.04. The stock's 50 day simple moving average is $240.92 and its 200 day simple moving average is $204.30. The firm has a market capitalization of $15.80 billion, a P/E ratio of 42.10, a P/E/G ratio of 2.84 and a beta of 1.26.

About Woodward

Woodward, Inc designs, manufactures, and services control solutions for the aerospace and industrial markets worldwide. The company operates in two segments, Aerospace and Industrial. The Aerospace segment provides fuel pumps, metering units, actuators, air valves, specialty valves, fuel nozzles, and thrust reverser actuation systems for turbine engines and nacelles, and flight deck controls, actuators, servocontrols, motors, and sensors for aircraft.