Masco Corp. (MAS) Rating Increased to Buy at Zacks Investment Research
Masco Corp. (NYSE:MAS) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research report issued to clients and investors on Tuesday. The firm presently has a $38.00 price target on the stock. Zacks Investment Research’s price objective indicates a potential upside of 10.98% from the stock’s current price.
According to Zacks, “Masco’s results in the first two quarters of 2016 were marked by robust growth in earnings, revenues and margins, as the company capitalized on improving momentum in the repair and remodeling and new home construction industry. The company expects repair and remodeling and construction activity to continue to accelerate, which is expected to drive further demand for Masco's leading products in the second half. In addition, management revealed its intention to raise its annual dividend by 5.3% per share, effective from the fourth quarter of 2016. However, adverse currency translations, despite being moderate than 2015 levels, remain a headwind. Further, the company expects the exit of some less profitable direct-to-builder business to hurt Cabinet sales in the upcoming quarters.”
MAS has been the subject of several other reports. Deutsche Bank AG boosted their target price on shares of Masco Corp. from $28.00 to $31.00 and gave the company a “hold” rating in a research note on Thursday, July 28th. Wells Fargo & Co. began coverage on shares of Masco Corp. in a research note on Wednesday, September 28th. They issued an “outperform” rating for the company. Jefferies Group boosted their target price on shares of Masco Corp. from $37.00 to $42.00 and gave the company a “buy” rating in a research note on Wednesday, July 27th. FBR & Co boosted their target price on shares of Masco Corp. from $36.00 to $40.00 and gave the company an “outperform” rating in a research note on Wednesday, July 27th. Finally, TheStreet cut shares of Masco Corp. from a “buy” rating to a “hold” rating in a research note on Friday, June 10th. Four equities research analysts have rated the stock with a hold rating and seventeen have assigned a buy rating to the company’s stock. The company currently has a consensus rating of “Buy” and a consensus price target of $35.53.
Masco Corp. (NYSE:MAS) opened at 34.24 on Tuesday. Masco Corp. has a 52 week low of $23.10 and a 52 week high of $37.38. The firm has a 50 day moving average of $34.50 and a 200-day moving average of $32.98. The stock has a market capitalization of $11.17 billion, a PE ratio of 26.00 and a beta of 1.83.
Masco Corp. (NYSE:MAS) last posted its earnings results on Tuesday, July 26th. The company reported $0.46 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.43 by $0.03. Masco Corp. had a net margin of 6.12% and a return on equity of 780.00%. The firm earned $2 billion during the quarter, compared to analysts’ expectations of $2 billion. During the same period in the previous year, the business posted $0.38 EPS. The business’s revenue was up 3.7% compared to the same quarter last year. On average, equities analysts predict that Masco Corp. will post $1.57 EPS for the current year.
The firm also recently announced a quarterly dividend, which will be paid on Monday, November 14th. Stockholders of record on Friday, October 14th will be given a dividend of $0.10 per share. The ex-dividend date is Wednesday, October 12th. This is a positive change from Masco Corp.’s previous quarterly dividend of $0.10. This represents a $0.40 dividend on an annualized basis and a dividend yield of 1.17%. Masco Corp.’s dividend payout ratio (DPR) is 29.01%.
In related news, Director Richard A. Manoogian sold 35,244 shares of Masco Corp. stock in a transaction on Tuesday, August 9th. The shares were sold at an average price of $36.30, for a total value of $1,279,357.20. Following the transaction, the director now directly owns 765,739 shares in the company, valued at approximately $27,796,325.70. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, Director Richard A. Manoogian sold 44,008 shares of Masco Corp. stock in a transaction on Thursday, July 28th. The shares were sold at an average price of $36.68, for a total transaction of $1,614,213.44. Following the completion of the transaction, the director now owns 818,711 shares in the company, valued at $30,030,319.48. The disclosure for this sale can be found here. Insiders own 1.70% of the company’s stock.
A number of institutional investors have recently bought and sold shares of MAS. Anchor Bolt Capital LP purchased a new position in Masco Corp. during the first quarter worth $47,731,000. Hermes Investment Management Ltd. raised its position in Masco Corp. by 0.8% in the second quarter. Hermes Investment Management Ltd. now owns 640,346 shares of the company’s stock worth $19,812,000 after buying an additional 5,200 shares during the period. Capital Fund Management S.A. raised its position in Masco Corp. by 3,980.9% in the second quarter. Capital Fund Management S.A. now owns 1,062,175 shares of the company’s stock worth $32,864,000 after buying an additional 1,036,147 shares during the period. Geode Capital Management LLC raised its position in Masco Corp. by 0.7% in the first quarter. Geode Capital Management LLC now owns 2,635,785 shares of the company’s stock worth $82,720,000 after buying an additional 19,254 shares during the period. Finally, SevenBridge Financial Group LLC purchased a new position in Masco Corp. during the first quarter worth $1,625,000. Hedge funds and other institutional investors own 91.63% of the company’s stock.
About Masco Corp.
Masco Corporation designs, manufactures, markets and distributes branded home improvement and building products. The Company operates through four business segments: Cabinets and Related Products, Plumbing Products, Decorative Architectural Products and Other Specialty Products. It has a portfolio of brands, which includes KRAFTMAID, MERILLAT and PEERLESS.
For more information about research offerings from Zacks Investment Research, visit Zacks.com
Receive News & Ratings for Masco Corp. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Masco Corp. and related companies with MarketBeat.com's FREE daily email newsletter.