Zacks Investment Research Reiterates Buy Rating for Williams-Sonoma (WSM)
Williams-Sonoma (NYSE:WSM)‘s stock had its “buy” rating reaffirmed by Zacks Investment Research in a research note issued to investors on Saturday. They presently have a $70.00 price objective on the specialty retailer’s stock. Zacks Investment Research‘s target price indicates a potential upside of 14.96% from the company’s previous close.
According to Zacks, “Shares of Williams-Sonoma have outperformed its industry in the past six months. Continued enhancement of e-commerce channel, optimization of supply chain and the transformation of retail fleet by investing in new and remodeled stores are expected to drive growth for William Sonoma. Moreover, the company’s focus on product innovation plays a huge role in the company’s success. Also, earnings estimates for 2018 and 2019 have increased over the past 60 days, reflecting upside potential for the stock’s earnings prospect. However, high costs associated with continued investments in e-commerce and a competitive retail environment mar growth prospects. Further, supply-chain investments are creating pressure on the company’s operating margins. Intense competition and the company’s dependency on consumer discretionary spending further add to the woes.”
Several other research firms have also commented on WSM. Loop Capital upped their target price on Williams-Sonoma to $65.00 and gave the company a “hold” rating in a research note on Thursday, August 23rd. They noted that the move was a valuation call. ValuEngine lowered Williams-Sonoma from a “buy” rating to a “hold” rating in a research note on Thursday, September 13th. Buckingham Research upped their price target on Williams-Sonoma from $54.00 to $64.00 and gave the stock a “neutral” rating in a research note on Thursday, August 23rd. Royal Bank of Canada upped their price target on Williams-Sonoma to $67.00 and gave the stock a “market perform” rating in a research note on Thursday, August 23rd. Finally, Wedbush set a $62.00 price target on Williams-Sonoma and gave the stock a “hold” rating in a research note on Wednesday, August 15th. Five investment analysts have rated the stock with a sell rating, eighteen have issued a hold rating and three have issued a buy rating to the company’s stock. The company has a consensus rating of “Hold” and an average price target of $59.35.
Williams-Sonoma (NYSE:WSM) last released its earnings results on Wednesday, August 22nd. The specialty retailer reported $0.77 EPS for the quarter, beating the Thomson Reuters’ consensus estimate of $0.68 by $0.09. The firm had revenue of $1.28 billion during the quarter, compared to analyst estimates of $1.26 billion. Williams-Sonoma had a return on equity of 28.68% and a net margin of 4.84%. The business’s quarterly revenue was up 6.1% compared to the same quarter last year. During the same period in the prior year, the firm posted $0.61 earnings per share. As a group, equities analysts predict that Williams-Sonoma will post 4.34 EPS for the current year.
In other news, insider Janet Hayes sold 14,376 shares of the company’s stock in a transaction dated Friday, September 14th. The stock was sold at an average price of $68.10, for a total value of $979,005.60. Following the completion of the sale, the insider now owns 44,889 shares of the company’s stock, valued at $3,056,940.90. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, EVP David Randolph King sold 24,323 shares of the company’s stock in a transaction dated Friday, August 31st. The stock was sold at an average price of $68.88, for a total value of $1,675,368.24. Following the completion of the sale, the executive vice president now directly owns 17,589 shares of the company’s stock, valued at approximately $1,211,530.32. The disclosure for this sale can be found here. 0.87% of the stock is owned by corporate insiders.
Several hedge funds and other institutional investors have recently modified their holdings of WSM. Itau Unibanco Holding S.A. purchased a new stake in shares of Williams-Sonoma in the second quarter worth about $101,000. First Mercantile Trust Co. purchased a new stake in shares of Williams-Sonoma in the second quarter worth about $175,000. Enterprise Financial Services Corp purchased a new stake in shares of Williams-Sonoma in the second quarter worth about $177,000. Pillar Pacific Capital Management LLC purchased a new stake in shares of Williams-Sonoma in the second quarter worth about $209,000. Finally, Cim LLC purchased a new stake in shares of Williams-Sonoma in the second quarter worth about $259,000.
Williams-Sonoma, Inc operates as a multi-channel specialty retailer of various products for home. It operates through two segments, E-commerce and Retail. The company offers cooking, dining, and entertaining products, including cookware, tools, electrics, cutlery, tabletop and bar, outdoor, furniture, and a library of cookbooks under the Williams Sonoma brand, as well as home furnishings and decorative accessories under the Williams Sonoma Home brand; and furniture, bedding, bathroom accessories, rugs, curtains, lighting, tabletop, outdoor, and decorative accessories under the Pottery Barn brand.
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