Masco Corp. (NYSE:MAS) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a note issued to investors on Tuesday. The firm currently has a $38.00 price target on the stock. Zacks Investment Research’s target price indicates a potential upside of 11.90% from the stock’s previous close.
According to Zacks, “Masco’s results in the first two quarters of 2016 were marked by robust growth in earnings, revenues and margins, as the company capitalized on improving momentum in the repair and remodeling and new home construction industry. The company expects repair and remodeling and construction activity to continue to accelerate, which is expected to drive further demand for Masco's leading products in the second half. In addition, management revealed its intention to raise its annual dividend by 5.3% per share, effective from the fourth quarter of 2016. However, adverse currency translations, despite being moderate than 2015 levels, remain a headwind. Further, the company expects the exit of some less profitable direct-to-builder business to hurt Cabinet sales in the upcoming quarters.”
A number of other equities research analysts have also issued reports on MAS. Jefferies Group reaffirmed a “buy” rating on shares of Masco Corp. in a report on Thursday, August 4th. TheStreet raised shares of Masco Corp. from a “hold” rating to a “buy” rating in a report on Thursday, July 21st. Credit Suisse Group AG reissued a “buy” rating and issued a $34.00 target price on shares of Masco Corp. in a report on Wednesday, June 29th. Bank of America Corp. assumed coverage on Masco Corp. in a research report on Friday, September 23rd. They issued a “buy” rating and a $41.00 price target for the company. Finally, Deutsche Bank AG raised their price target on Masco Corp. from $28.00 to $31.00 and gave the stock a “hold” rating in a research report on Thursday, July 28th. Four investment analysts have rated the stock with a hold rating and seventeen have assigned a buy rating to the company. The stock currently has a consensus rating of “Buy” and an average target price of $35.53.
Shares of Masco Corp. (NYSE:MAS) traded down 0.085% during midday trading on Tuesday, reaching $33.931. 1,847,871 shares of the company’s stock traded hands. Masco Corp. has a one year low of $23.10 and a one year high of $37.38. The stock’s 50-day moving average price is $34.60 and its 200 day moving average price is $32.95. The firm has a market capitalization of $11.07 billion, a PE ratio of 25.764 and a beta of 1.83.
Masco Corp. (NYSE:MAS) last released its earnings results on Tuesday, July 26th. The company reported $0.46 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $0.43 by $0.03. The company earned $2 billion during the quarter, compared to analyst estimates of $2 billion. Masco Corp. had a net margin of 6.12% and a return on equity of 780.00%. The firm’s quarterly revenue was up 3.7% compared to the same quarter last year. During the same period in the prior year, the firm posted $0.38 EPS. On average, equities research analysts expect that Masco Corp. will post $1.57 earnings per share for the current fiscal year.
The business also recently announced a quarterly dividend, which will be paid on Monday, November 14th. Shareholders of record on Friday, October 14th will be paid a $0.10 dividend. This represents a $0.40 annualized dividend and a yield of 1.18%. The ex-dividend date of this dividend is Wednesday, October 12th. This is a positive change from Masco Corp.’s previous quarterly dividend of $0.10. Masco Corp.’s payout ratio is 29.01%.
In other Masco Corp. news, Director Richard A. Manoogian sold 44,008 shares of Masco Corp. stock in a transaction dated Thursday, July 28th. The stock was sold at an average price of $36.68, for a total value of $1,614,213.44. Following the transaction, the director now owns 818,711 shares in the company, valued at $30,030,319.48. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, VP Kenneth G. Cole sold 3,609 shares of Masco Corp. stock in a transaction dated Thursday, July 28th. The shares were sold at an average price of $37.23, for a total value of $134,363.07. Following the completion of the transaction, the vice president now owns 79,192 shares in the company, valued at approximately $2,948,318.16. The disclosure for this sale can be found here. 1.70% of the stock is owned by company insiders.
Institutional investors have recently bought and sold shares of the stock. Bessemer Group Inc. raised its position in Masco Corp. by 1.8% in the first quarter. Bessemer Group Inc. now owns 3,334 shares of the company’s stock valued at $105,000 after buying an additional 58 shares during the period. IFP Advisors Inc raised its position in Masco Corp. by 203.8% in the first quarter. IFP Advisors Inc now owns 3,904 shares of the company’s stock valued at $123,000 after buying an additional 2,619 shares during the period. Tower Research Capital LLC TRC raised its position in Masco Corp. by 1,368.4% in the second quarter. Tower Research Capital LLC TRC now owns 5,477 shares of the company’s stock valued at $169,000 after buying an additional 5,104 shares during the period. Signature Estate & Investment Advisors LLC bought a new position in Masco Corp. during the second quarter valued at about $174,000. Finally, Pacer Advisors Inc. raised its position in Masco Corp. by 8.6% in the second quarter. Pacer Advisors Inc. now owns 6,221 shares of the company’s stock valued at $192,000 after buying an additional 495 shares during the period. Institutional investors own 91.63% of the company’s stock.
Masco Corp. Company Profile
Masco Corporation designs, manufactures, markets and distributes branded home improvement and building products. The Company operates through four business segments: Cabinets and Related Products, Plumbing Products, Decorative Architectural Products and Other Specialty Products. It has a portfolio of brands, which includes KRAFTMAID, MERILLAT and PEERLESS.
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