Stanley Black & Decker Inc. (NYSE:SWK) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research note issued to investors on Friday.
According to Zacks, “Stanley Black & Decker has solid long-term growth potential, backed by its strategy of shifting its business portfolio toward favored growth markets. Recently, the company agreed to acquire Newell Tools, that will strengthen the company's tools business through deeper penetration into markets worldwide. For 2016, the company raised its earnings per share guidance to $6.30-$6.50 and organic revenue growth forecast to 4%. The revised forecast was driven by improved Tools & Storage business and benefits from cost and productivity actions, partially offset by higher currency headwinds, weak industrial activities and other incremental costs. Also, headwinds like increasing expenses, huge debt level and active competition in all businesses might limit the company's prospects in the near term. Over the last 60 days, the Zacks Consensus Estimate has increased for 2016 while decreased for 2017.”
A number of other research firms also recently weighed in on SWK. Argus reaffirmed a “hold” rating on shares of Stanley Black & Decker in a research note on Tuesday, July 26th. Zelman & Associates downgraded Stanley Black & Decker from a “buy” rating to a “hold” rating in a research note on Monday, July 25th. Credit Suisse Group AG reaffirmed a “hold” rating on shares of Stanley Black & Decker in a research note on Tuesday, June 28th. Imperial Capital reaffirmed a “hold” rating and set a $107.00 price target on shares of Stanley Black & Decker in a research note on Wednesday, June 29th. Finally, Longbow Research downgraded Stanley Black & Decker from a “buy” rating to a “neutral” rating in a research note on Monday, August 22nd. Ten research analysts have rated the stock with a hold rating and three have issued a buy rating to the company. The stock has an average rating of “Hold” and an average price target of $117.45.
Shares of Stanley Black & Decker (NYSE:SWK) traded up 0.89% on Friday, hitting $121.91. The stock had a trading volume of 307,801 shares. The company has a 50-day moving average of $122.08 and a 200 day moving average of $116.03. Stanley Black & Decker has a 52 week low of $88.72 and a 52 week high of $124.86. The company has a market capitalization of $18.34 billion, a price-to-earnings ratio of 19.03 and a beta of 1.38.
Stanley Black & Decker (NYSE:SWK) last posted its quarterly earnings results on Friday, July 22nd. The company reported $1.84 earnings per share for the quarter, topping analysts’ consensus estimates of $1.72 by $0.12. Stanley Black & Decker had a return on equity of 16.96% and a net margin of 8.47%. The business had revenue of $2.90 billion for the quarter, compared to the consensus estimate of $2.90 billion. During the same period in the prior year, the business earned $1.54 EPS. The firm’s revenue for the quarter was up 2.3% on a year-over-year basis. On average, equities research analysts predict that Stanley Black & Decker will post $6.48 EPS for the current year.
The company also recently disclosed a quarterly dividend, which was paid on Tuesday, September 20th. Shareholders of record on Friday, September 2nd were issued a dividend of $0.58 per share. This represents a $2.32 annualized dividend and a yield of 1.92%. This is a positive change from Stanley Black & Decker’s previous quarterly dividend of $0.55. The ex-dividend date of this dividend was Wednesday, August 31st. Stanley Black & Decker’s dividend payout ratio is 36.19%.
In other Stanley Black & Decker news, insider James J. Cannon sold 5,776 shares of the stock in a transaction on Monday, August 1st. The stock was sold at an average price of $121.40, for a total transaction of $701,206.40. Following the completion of the transaction, the insider now directly owns 39,756 shares of the company’s stock, valued at $4,826,378.40. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, CFO Donald Allan sold 30,371 shares of the stock in a transaction on Wednesday, July 27th. The shares were sold at an average price of $122.50, for a total value of $3,720,447.50. Following the transaction, the chief financial officer now directly owns 115,225 shares of the company’s stock, valued at $14,115,062.50. The disclosure for this sale can be found here. Company insiders own 1.80% of the company’s stock.
Institutional investors have recently made changes to their positions in the stock. Krilogy Financial LLC raised its position in shares of Stanley Black & Decker by 9.4% in the second quarter. Krilogy Financial LLC now owns 1,192 shares of the company’s stock valued at $133,000 after buying an additional 102 shares during the period. Reilly Financial Advisors LLC raised its position in shares of Stanley Black & Decker by 500.0% in the second quarter. Reilly Financial Advisors LLC now owns 1,200 shares of the company’s stock valued at $133,000 after buying an additional 1,000 shares during the period. Dynamic Advisors Solutions LLC purchased a new position in shares of Stanley Black & Decker during the third quarter valued at $203,000. Canandaigua National Bank & Trust Co. purchased a new position in shares of Stanley Black & Decker during the third quarter valued at $206,000. Finally, Checchi Capital Advisers LLC raised its position in shares of Stanley Black & Decker by 3.3% in the second quarter. Checchi Capital Advisers LLC now owns 1,751 shares of the company’s stock valued at $195,000 after buying an additional 56 shares during the period. 83.96% of the stock is owned by institutional investors and hedge funds.
Stanley Black & Decker Company Profile
Stanley Black & Decker, Inc is a provider of hand tools, power tools and related accessories, mechanical access solutions (automatic doors and commercial locking systems), electronic security and monitoring systems, healthcare solutions, engineered fastening systems, and products and services for various industrial applications.
For more information about research offerings from Zacks Investment Research, visit Zacks.com
Receive News & Ratings for Stanley Black & Decker Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Stanley Black & Decker Inc. and related companies with MarketBeat.com's FREE daily email newsletter.