Williams-Sonoma (NYSE:WSM) Sets New 12-Month High – Time to Buy?

Williams-Sonoma, Inc. (NYSE:WSM)’s share price hit a new 52-week high on Thursday. The company traded as high as $274.45 and last traded at $267.4490, with a volume of 40,020 shares trading hands. The stock had previously closed at $270.08.

Analyst Upgrades and Downgrades

A number of analysts have weighed in on WSM shares. TD Cowen reaffirmed a “buy” rating on shares of Williams-Sonoma in a research note on Monday, August 10th. KeyCorp reiterated an “overweight” rating and issued a $270.00 price target (up from $250.00) on shares of Williams-Sonoma in a research note on Thursday, August 27th. Argus raised their price objective on Williams-Sonoma from $230.00 to $250.00 and gave the company a “buy” rating in a report on Wednesday, September 2nd. Bank of America restated a “buy” rating and set a $261.00 price objective (up from $250.00) on shares of Williams-Sonoma in a research report on Monday, August 24th. Finally, Citigroup boosted their price objective on Williams-Sonoma from $248.00 to $252.00 and gave the stock a “neutral” rating in a research report on Thursday, August 27th. Ten equities research analysts have rated the stock with a Buy rating and eight have given a Hold rating to the stock. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average target price of $247.89.

Williams-Sonoma Stock Performance

The stock has a market capitalization of $30.86 billion, a P/E ratio of 26.71, a price-to-earnings-growth ratio of 2.75 and a beta of 1.49. The stock’s fifty day simple moving average is $237.85 and its two-hundred day simple moving average is $215.54.

Williams-Sonoma (NYSE:WSM) last released its quarterly earnings results on Wednesday, August 26th. The specialty retailer reported $2.10 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.08 by $0.02. The firm had revenue of $1.96 billion during the quarter, compared to the consensus estimate of $1.93 billion. Williams-Sonoma had a net margin of 14.73% and a return on equity of 53.48%. The company’s revenue for the quarter was up 6.7% on a year-over-year basis. During the same quarter last year, the firm earned $2.00 earnings per share. As a group, analysts expect that Williams-Sonoma, Inc. will post 9.50 earnings per share for the current fiscal year.

Williams-Sonoma Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, November 20th. Investors of record on Friday, October 16th will be issued a $0.76 dividend. This represents a $3.04 dividend on an annualized basis and a yield of 1.2%. The ex-dividend date is Friday, October 16th. Williams-Sonoma’s dividend payout ratio is presently 31.12%.

Insider Buying and Selling

In related news, CFO Jeffrey Howie sold 3,045 shares of the firm’s stock in a transaction on Wednesday, September 16th. The stock was sold at an average price of $220.61, for a total transaction of $671,757.45. Following the completion of the transaction, the chief financial officer directly owned 34,138 shares of the company’s stock, valued at $7,531,184.18. This trade represents a 8.19% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Laura Alber sold 35,000 shares of Williams-Sonoma stock in a transaction dated Wednesday, September 16th. The stock was sold at an average price of $221.20, for a total value of $7,742,000.00. Following the transaction, the chief executive officer directly owned 853,524 shares in the company, valued at $188,799,508.80. The trade was a 3.94% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 39,883 shares of company stock valued at $8,867,518 in the last quarter. 1.10% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Williams-Sonoma

Several institutional investors and hedge funds have recently made changes to their positions in WSM. Latitude Advisors LLC bought a new stake in Williams-Sonoma in the third quarter valued at approximately $25,000. Provenance Wealth Advisors LLC acquired a new stake in Williams-Sonoma during the 3rd quarter valued at approximately $28,000. Ballast Advisors LLC bought a new position in Williams-Sonoma during the 1st quarter worth approximately $30,000. Millstone Evans Group LLC raised its holdings in Williams-Sonoma by 229.4% during the 1st quarter. Millstone Evans Group LLC now owns 168 shares of the specialty retailer’s stock worth $31,000 after purchasing an additional 117 shares during the last quarter. Finally, IMG Wealth Management Inc. bought a new position in Williams-Sonoma during the 2nd quarter worth approximately $31,000. Institutional investors and hedge funds own 99.29% of the company’s stock.

Williams-Sonoma Company Profile

Williams-Sonoma, Inc is a specialty retailer focused on home furnishings, décor, kitchenware and related products. The company operates a portfolio of lifestyle brands, including Williams Sonoma, Pottery Barn, West Elm, Pottery Barn Kids, Rejuvenation and Mark & Graham.

Its products include cookware, tableware, appliances, furniture, bedding, lighting, rugs, home accessories, gifts and personalized merchandise. Williams-Sonoma reaches customers through e-commerce websites, retail stores, catalogs and trade and contract sales, serving both individual consumers and professional customers such as interior designers and hospitality businesses.

Founded in 1956 by Chuck Williams, the company began as a retailer specializing in high-quality French cookware before expanding into a broader home-focused portfolio.