Stanley Black & Decker (SWK) Stock Rating Lowered by Zacks Investment Research

Stanley Black & Decker (NYSE:SWK) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research note issued on Wednesday.

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. Moreover, geographically diversified business of the company has exposed it to risks arising from adverse movements in foreign currencies and geopolitical issues. Also, in the past month, the company’s shares have underperformed the industry. 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.”

A number of other analysts also recently weighed in on SWK. ValuEngine upgraded shares of Stanley Black & Decker from a “sell” rating to a “hold” rating in a research report on Tuesday, January 29th. Deutsche Bank set a $137.00 price target on shares of Stanley Black & Decker and gave the company a “buy” rating in a research report on Wednesday, January 23rd. Macquarie set a $140.00 price target on shares of Stanley Black & Decker and gave the company a “buy” rating in a research report on Tuesday, October 30th. Buckingham Research set a $133.00 price target on shares of Stanley Black & Decker and gave the company a “hold” rating in a research report on Wednesday, January 16th. Finally, TheStreet downgraded shares of Stanley Black & Decker from a “b-” rating to a “c+” rating in a research report on Tuesday, January 22nd. One analyst has rated the stock with a sell rating, three have issued a hold rating and fourteen have assigned a buy rating to the company. The company has a consensus rating of “Buy” and a consensus target price of $156.53.

Shares of NYSE:SWK opened at $128.05 on Wednesday. The company has a market capitalization of $19.68 billion, a P/E ratio of 15.71, a PEG ratio of 1.60 and a beta of 1.24. The company has a debt-to-equity ratio of 0.48, a quick ratio of 0.56 and a current ratio of 1.16. Stanley Black & Decker has a fifty-two week low of $106.41 and a fifty-two week high of $164.94.

Stanley Black & Decker (NYSE:SWK) last announced its quarterly earnings results on Tuesday, January 22nd. The industrial products company reported $2.11 earnings per share for the quarter, beating analysts’ consensus estimates of $2.10 by $0.01. The business had revenue of $3.63 billion for the quarter, compared to the consensus estimate of $3.62 billion. Stanley Black & Decker had a net margin of 4.62% and a return on equity of 16.29%. Stanley Black & Decker’s revenue for the quarter was up 4.9% on a year-over-year basis. During the same period last year, the company posted $2.18 EPS. On average, analysts forecast that Stanley Black & Decker will post 8.56 EPS for the current fiscal year.

In other Stanley Black & Decker news, SVP Jaime A. Ramirez sold 600 shares of the firm’s stock in a transaction that occurred on Thursday, January 24th. The shares were sold at an average price of $118.69, for a total transaction of $71,214.00. Following the sale, the senior vice president now directly owns 35,048 shares in the company, valued at approximately $4,159,847.12. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Company insiders own 0.69% of the company’s stock.

Several hedge funds and other institutional investors have recently bought and sold shares of SWK. Capital Research Global Investors acquired a new stake in shares of Stanley Black & Decker in the third quarter valued at approximately $589,253,000. JPMorgan Chase & Co. raised its holdings in shares of Stanley Black & Decker by 17.0% in the third quarter. JPMorgan Chase & Co. now owns 12,566,744 shares of the industrial products company’s stock valued at $1,840,276,000 after purchasing an additional 1,822,466 shares during the last quarter. Eaton Vance Management raised its holdings in shares of Stanley Black & Decker by 767.0% in the fourth quarter. Eaton Vance Management now owns 803,535 shares of the industrial products company’s stock valued at $96,215,000 after purchasing an additional 710,850 shares during the last quarter. Cornerstone Wealth Management LLC raised its holdings in shares of Stanley Black & Decker by 1,196.2% in the third quarter. Cornerstone Wealth Management LLC now owns 664,439 shares of the industrial products company’s stock valued at $4,241,000 after purchasing an additional 613,177 shares during the last quarter. Finally, Wells Fargo & Company MN raised its holdings in shares of Stanley Black & Decker by 12.8% in the third quarter. Wells Fargo & Company MN now owns 4,841,927 shares of the industrial products company’s stock valued at $709,052,000 after purchasing an additional 548,025 shares during the last quarter. Institutional investors own 86.09% of the company’s stock.

Stanley Black & Decker Company Profile

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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