Stanley Black & Decker Inc. (NYSE:SWK) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a report released on Monday. The brokerage presently has a $135.00 target price on the stock. Zacks Investment Research’s price target would indicate a potential upside of 11.64% from the stock’s previous close.
According to Zacks, “Stanley Black & Decker has significant long-term growth potential, backed by its strategy of shifting its business portfolio toward favored growth markets. In second-quarter 2016, earnings of $1.84 per share grew 19.5% year over year. Revenues increased 2.3% from the year-ago period. 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. Over the last 60 days, the Zacks Consensus Estimate for the stock has been revised upwards for both 2016 and 2017.”
Other research analysts have also issued reports about the company. Zelman & Associates lowered Stanley Black & Decker from a “buy” rating to a “hold” rating in a report on Monday, July 25th. Imperial Capital reaffirmed a “hold” rating and set a $107.00 target price on shares of Stanley Black & Decker in a report on Wednesday, June 29th. Goldman Sachs Group Inc. assumed coverage on Stanley Black & Decker in a report on Friday, June 10th. They set a “neutral” rating and a $120.00 target price on the stock. Longbow Research lowered Stanley Black & Decker from a “buy” rating to a “neutral” rating in a report on Monday, August 22nd. Finally, Credit Suisse Group AG reaffirmed a “hold” rating on shares of Stanley Black & Decker in a report on Tuesday, June 28th. Nine equities research analysts have rated the stock with a hold rating and four have assigned a buy rating to the stock. The company has an average rating of “Hold” and an average price target of $113.25.
Stanley Black & Decker (NYSE:SWK) traded up 0.20% during midday trading on Monday, hitting $121.16. 360,440 shares of the company traded hands. The stock has a market cap of $18.23 billion, a P/E ratio of 18.92 and a beta of 1.52. The stock has a 50 day moving average of $122.33 and a 200 day moving average of $114.01. Stanley Black & Decker has a 12-month low of $88.72 and a 12-month high of $124.73.
Stanley Black & Decker (NYSE:SWK) last issued its quarterly earnings results on Friday, July 22nd. The company reported $1.84 EPS for the quarter, beating analysts’ consensus estimates of $1.72 by $0.12. The company had revenue of $2.90 billion for the quarter, compared to analyst estimates of $2.90 billion. Stanley Black & Decker had a return on equity of 16.96% and a net margin of 8.47%. The company’s quarterly revenue was up 2.3% compared to the same quarter last year. During the same period last year, the company earned $1.54 earnings per share. Equities research analysts predict that Stanley Black & Decker will post $6.48 EPS for the current fiscal year.
The company also recently declared a quarterly dividend, which was paid on Tuesday, September 20th. Stockholders of record on Friday, September 2nd were issued a dividend of $0.58 per share. This represents a $2.32 annualized dividend and a dividend yield of 1.92%. This is a positive change from Stanley Black & Decker’s previous quarterly dividend of $0.55. The ex-dividend date was Wednesday, August 31st. Stanley Black & Decker’s payout ratio is currently 36.19%.
In other news, SVP Ben S. Sihota sold 5,000 shares of Stanley Black & Decker stock in a transaction dated Tuesday, August 30th. The stock was sold at an average price of $124.54, for a total transaction of $622,700.00. Following the completion of the sale, the senior vice president now directly owns 21,200 shares in the company, valued at approximately $2,640,248. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Also, VP Craig A. Douglas sold 8,529 shares of Stanley Black & Decker stock in a transaction dated Thursday, August 4th. The shares were sold at an average price of $122.62, for a total value of $1,045,825.98. Following the sale, the vice president now owns 31,525 shares of the company’s stock, valued at $3,865,595.50. The disclosure for this sale can be found here. Insiders own 1.80% of the company’s stock.
Large investors have recently made changes to their positions in the stock. JPMorgan Chase & Co. raised its stake in shares of Stanley Black & Decker by 32.8% in the first quarter. JPMorgan Chase & Co. now owns 10,585,073 shares of the company’s stock valued at $1,113,654,000 after buying an additional 2,612,408 shares in the last quarter. NN Investment Partners Holdings N.V. purchased a new stake in shares of Stanley Black & Decker during the first quarter valued at about $89,061,000. Emerald Acquisition Ltd. purchased a new stake in shares of Stanley Black & Decker during the second quarter valued at about $87,422,000. Principal Financial Group Inc. raised its stake in shares of Stanley Black & Decker by 286.8% in the second quarter. Principal Financial Group Inc. now owns 1,041,600 shares of the company’s stock valued at $115,847,000 after buying an additional 772,288 shares in the last quarter. Finally, Numeric Investors LLC raised its stake in shares of Stanley Black & Decker by 15,924.1% in the second quarter. Numeric Investors LLC now owns 464,700 shares of the company’s stock valued at $51,684,000 after buying an additional 461,800 shares in the last quarter. Institutional investors and hedge funds own 83.96% of the company’s stock.
About Stanley Black & Decker
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.
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