Zacks Investment Research downgraded shares of Stanley Black & Decker (NYSE:SWK) from a hold rating to a sell rating in a research note released on Thursday morning.

According to Zacks, “Stanley Black & Decker is dealing with adverse impacts of rising cost of sales. Notably, in the fourth quarter of 2018, its cost of sales increased 9.4% year over year primarily due to commodity inflation and tariffs. Also, high interest and tax expenses are concerning. For 2019, organic sales growth for the Industrial segment is predicted to be flat year over year due to soft business in automotive end market and relatively flat business for the Hydraulic Tools business. Moreover, geographically diversified business of the company has exposed it to risks arising from adverse movements in foreign currencies and geopolitical issues. Further, increases in debt levels can increase its financial obligations. Over the past 30 days, Zacks Consensus Estimate for the company's earnings has declined for both 2019 and 2020.”

Several other brokerages have also weighed in on SWK. ValuEngine lowered Stanley Black & Decker from a hold rating to a sell rating in a research report on Tuesday, January 22nd. Credit Suisse Group set a $155.00 price target on Stanley Black & Decker and gave the stock a buy rating in a research note on Tuesday, January 22nd. Deutsche Bank raised Stanley Black & Decker from a hold rating to a buy rating and increased their price target for the stock from $136.00 to $143.00 in a research note on Sunday, December 16th. TheStreet cut Stanley Black & Decker from a b- rating to a c+ rating in a research note on Tuesday, January 22nd. Finally, Raymond James reissued a hold rating on shares of Stanley Black & Decker in a research note on Wednesday, January 23rd. One equities research analyst has rated the stock with a sell rating, three have given a hold rating and fourteen have assigned a buy rating to the company. Stanley Black & Decker has a consensus rating of Buy and a consensus target price of $154.69.

Shares of SWK stock traded up $0.36 on Thursday, hitting $132.34. 8,202 shares of the stock traded hands, compared to its average volume of 1,534,035. The company has a current ratio of 1.14, a quick ratio of 0.56 and a debt-to-equity ratio of 0.54. The firm has a market cap of $19.98 billion, a P/E ratio of 16.21, a P/E/G ratio of 1.64 and a beta of 1.24. Stanley Black & Decker has a 1-year low of $106.41 and a 1-year high of $161.91.

Stanley Black & Decker (NYSE:SWK) last posted its quarterly earnings results on Tuesday, January 22nd. The industrial products company reported $2.11 earnings per share (EPS) for the quarter, beating the Thomson Reuters’ consensus estimate of $2.10 by $0.01. The business had revenue of $3.63 billion for the quarter, compared to analyst estimates of $3.62 billion. Stanley Black & Decker had a return on equity of 16.73% and a net margin of 4.62%. The business’s revenue was up 4.9% compared to the same quarter last year. During the same period in the prior year, the company posted $2.18 EPS. On average, research analysts forecast that Stanley Black & Decker will post 8.54 EPS for the current fiscal year.

The business also recently declared a quarterly dividend, which will be paid on Tuesday, March 19th. Investors of record on Tuesday, March 5th will be given a $0.66 dividend. The ex-dividend date of this dividend is Monday, March 4th. This represents a $2.64 dividend on an annualized basis and a dividend yield of 1.99%. Stanley Black & Decker’s dividend payout ratio (DPR) is 32.39%.

In related news, EVP Jeffrey D. Ansell sold 9,527 shares of the stock in a transaction dated Monday, February 25th. The stock was sold at an average price of $139.80, for a total value of $1,331,874.60. Following the completion of the sale, the executive vice president now directly owns 61,289 shares of the company’s stock, valued at approximately $8,568,202.20. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, SVP Joseph R. Voelker sold 3,488 shares of the stock in a transaction dated Monday, February 25th. The stock was sold at an average price of $137.48, for a total value of $479,530.24. Following the completion of the sale, the senior vice president now directly owns 22,149 shares of the company’s stock, valued at $3,045,044.52. The disclosure for this sale can be found here. Insiders sold a total of 14,615 shares of company stock valued at $2,018,879 in the last quarter. 1.03% of the stock is currently owned by corporate insiders.

A number of institutional investors have recently made changes to their positions in SWK. Patriot Financial Group Insurance Agency LLC raised its stake in shares of Stanley Black & Decker by 2.8% during the 4th quarter. Patriot Financial Group Insurance Agency LLC now owns 3,249 shares of the industrial products company’s stock worth $389,000 after purchasing an additional 90 shares in the last quarter. Thrivent Financial for Lutherans raised its stake in shares of Stanley Black & Decker by 1.8% during the 4th quarter. Thrivent Financial for Lutherans now owns 6,743 shares of the industrial products company’s stock worth $807,000 after purchasing an additional 118 shares in the last quarter. Copperwynd Financial LLC raised its stake in shares of Stanley Black & Decker by 5.3% during the 4th quarter. Copperwynd Financial LLC now owns 2,714 shares of the industrial products company’s stock worth $325,000 after purchasing an additional 137 shares in the last quarter. Legacy Financial Advisors Inc. raised its stake in shares of Stanley Black & Decker by 72.8% during the 4th quarter. Legacy Financial Advisors Inc. now owns 330 shares of the industrial products company’s stock worth $40,000 after purchasing an additional 139 shares in the last quarter. Finally, SRS Capital Advisors Inc. raised its stake in shares of Stanley Black & Decker by 12.6% during the 4th quarter. SRS Capital Advisors Inc. now owns 1,279 shares of the industrial products company’s stock worth $153,000 after purchasing an additional 143 shares in the last quarter. 87.53% of the stock is owned by hedge funds and other institutional investors.

About Stanley Black & Decker

Stanley Black & Decker, Inc provides tools and storage, engineered fastening and infrastructure, and security solutions worldwide. The company's Tools & Storage segment offers professional products, including corded and cordless electric power tools and equipment, drills, impact wrenches and drivers, grinders, saws, routers, and sanders, as well as pneumatic tools and fasteners, including nail guns, nails, staplers and staples, and concrete and masonry anchors; and consumer products, such as lawn and garden products comprising hedge and string trimmers, lawn mowers, and edgers and related accessories, as well as home products, such as hand-held vacuums, paint tools, and cleaning appliances.

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