Armstrong World Industries Inc. (AWI) Upgraded to “Strong-Buy” by Zacks Investment Research
Armstrong World Industries Inc. (NYSE:AWI) was upgraded by Zacks Investment Research from a “hold” rating to a “strong-buy” rating in a research note issued on Friday. The firm currently has a $48.00 target price on the stock. Zacks Investment Research’s price objective would indicate a potential upside of 15.25% from the stock’s current price.
According to Zacks, “Armstrong World reaffirmed its full-year 2016 adjusted EBITDA guidance based on its expectation of savings from cost reduction actions and volume improvement in the Americas. Volume improvement will be driven by new construction start activity. The company will also grow by leveraging its innovative product pipeline to provide customers with industry-leading products. The company’s new high-performance ceiling solutions meet the most stringent sustainability compliance and transparency standards in the market today. With the new sustained program, the company has optimized ingredients to support the design of healthy buildings. Moreover, focus on developing customer relationships and share buybacks will drive Armstrong World’s results. The company has a positive record of earnings surprises in the recent quarters.”
A number of other equities research analysts also recently weighed in on AWI. RBC Capital Markets reissued a “sector perform” rating and issued a $47.00 price target (up from $45.00) on shares of Armstrong World Industries in a report on Monday, August 1st. Stephens assumed coverage on shares of Armstrong World Industries in a report on Friday, July 8th. They issued an “equal weight” rating for the company. Bank of America Corp. assumed coverage on shares of Armstrong World Industries in a report on Friday. They issued an “underperform” rating for the company. Royal Bank Of Canada upped their price target on shares of Armstrong World Industries from $45.00 to $47.00 and gave the company a “sector perform” rating in a report on Monday, August 1st. Finally, Goldman Sachs Group Inc. downgraded shares of Armstrong World Industries from a “neutral” rating to a “sell” rating and cut their price target for the company from $38.00 to $34.00 in a report on Monday, July 11th. Three research analysts have rated the stock with a sell rating, six have assigned a hold rating, three have issued a buy rating and one has given a strong buy rating to the company. The stock currently has an average rating of “Hold” and an average target price of $46.91.
Shares of Armstrong World Industries (NYSE:AWI) opened at 41.65 on Friday. Armstrong World Industries has a 12-month low of $35.92 and a 12-month high of $52.39. The company has a 50-day moving average of $43.27 and a 200-day moving average of $41.79. The stock has a market capitalization of $2.31 billion, a P/E ratio of 92.76 and a beta of 1.53.
Armstrong World Industries (NYSE:AWI) last issued its quarterly earnings results on Friday, July 29th. The company reported $0.56 earnings per share for the quarter, beating the Zacks’ consensus estimate of $0.51 by $0.05. Armstrong World Industries had a net margin of 1.18% and a return on equity of 18.58%. The company earned $314.30 million during the quarter, compared to the consensus estimate of $311.65 million. During the same period in the prior year, the company earned $0.53 EPS. Armstrong World Industries’s revenue was down 50.3% on a year-over-year basis. Equities analysts expect that Armstrong World Industries will post $2.30 earnings per share for the current fiscal year.
In related news, VP Stephen F. Mcnamara sold 2,274 shares of the stock in a transaction that occurred on Monday, August 15th. The stock was sold at an average price of $45.00, for a total value of $102,330.00. Following the transaction, the vice president now owns 5,242 shares in the company, valued at $235,890. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. 0.60% of the stock is currently owned by insiders.
Institutional investors have recently added to or reduced their stakes in the company. Iridian Asset Management LLC CT purchased a new position in Armstrong World Industries during the second quarter worth approximately $152,520,000. First Eagle Investment Management LLC purchased a new position in Armstrong World Industries during the second quarter worth approximately $39,239,000. Advisory Research Inc. increased its position in Armstrong World Industries by 89.7% in the second quarter. Advisory Research Inc. now owns 958,403 shares of the company’s stock worth $37,522,000 after buying an additional 453,300 shares in the last quarter. Norges Bank purchased a new position in Armstrong World Industries during the fourth quarter worth approximately $12,599,000. Finally, Loomis Sayles & Co. L P increased its position in Armstrong World Industries by 37.7% in the first quarter. Loomis Sayles & Co. L P now owns 869,199 shares of the company’s stock worth $42,043,000 after buying an additional 237,783 shares in the last quarter. Hedge funds and other institutional investors own 99.90% of the company’s stock.
About Armstrong World Industries
Armstrong World Industries, Inc is a producer of flooring products and ceiling systems for use in the construction and renovation of residential, commercial and institutional buildings. The Company operates in four segments: Building Products, which produces suspended mineral fiber, soft fiber and metal ceiling systems for use in commercial, institutional and residential settings; Resilient Flooring, which designs, manufactures, sources and sells a range of floor coverings primarily for homes and commercial and institutional buildings; Wood Flooring segment, which designs, manufactures, sources and sells hardwood flooring products for use in new residential construction and renovation, with some commercial applications in stores, restaurants and high-end offices, and Unallocated Corporate.
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