Zacks Investment Research Reiterates Buy Rating for Williams-Sonoma (WSM)

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Williams-Sonoma (NYSE:WSM)‘s stock had its “buy” rating reissued by Zacks Investment Research in a research report issued to clients and investors on Saturday. They currently have a $70.00 price target on the specialty retailer’s stock. Zacks Investment Research‘s target price indicates a potential upside of 14.96% from the company’s current price.

According to Zacks, “Shares of Williams-Sonoma have outperformed its industry in the past six months. Continued enhancement of e-commerce channel, optimization of supply chain and the transformation of retail fleet by investing in new and remodeled stores are expected to drive growth for William Sonoma. Moreover, the company’s focus on product innovation plays a huge role in the company’s success. Also, earnings estimates for 2018 and 2019 have increased over the past 60 days, reflecting upside potential for the stock’s earnings prospect. However, high costs associated with continued investments in e-commerce and a competitive retail environment mar growth prospects. Further, supply-chain investments are creating pressure on the company’s operating margins. Intense competition and the company’s dependency on consumer discretionary spending further add to the woes.”

Other analysts have also recently issued reports about the company. Robert W. Baird increased their price target on Williams-Sonoma from $52.00 to $65.00 and gave the stock a “neutral” rating in a research report on Thursday, August 23rd. Argus set a $67.00 price target on Williams-Sonoma and gave the stock a “buy” rating in a research report on Friday, July 13th. Citigroup cut Williams-Sonoma from a “buy” rating to a “neutral” rating and set a $67.00 price target on the stock. in a research report on Wednesday, June 20th. Wedbush set a $62.00 price target on Williams-Sonoma and gave the stock a “hold” rating in a research report on Wednesday, August 15th. Finally, Morgan Stanley increased their price target on Williams-Sonoma from $57.00 to $60.00 and gave the stock an “equal weight” rating in a research report on Thursday. Five analysts have rated the stock with a sell rating, eighteen have given a hold rating and three have given a buy rating to the company’s stock. The company has an average rating of “Hold” and a consensus target price of $59.35.

Shares of Williams-Sonoma stock traded up $0.27 on Friday, reaching $60.89. 1,089,726 shares of the company were exchanged, compared to its average volume of 1,857,299. The company has a current ratio of 1.56, a quick ratio of 0.40 and a debt-to-equity ratio of 0.28. The stock has a market capitalization of $5.29 billion, a price-to-earnings ratio of 16.87, a PEG ratio of 1.94 and a beta of 0.83. Williams-Sonoma has a 1-year low of $44.01 and a 1-year high of $73.99.

Williams-Sonoma (NYSE:WSM) last announced its quarterly earnings results on Wednesday, August 22nd. The specialty retailer reported $0.77 earnings per share for the quarter, topping analysts’ consensus estimates of $0.68 by $0.09. The business had revenue of $1.28 billion for the quarter, compared to analysts’ expectations of $1.26 billion. Williams-Sonoma had a return on equity of 28.68% and a net margin of 4.84%. The business’s quarterly revenue was up 6.1% on a year-over-year basis. During the same period in the prior year, the firm earned $0.61 EPS. Sell-side analysts predict that Williams-Sonoma will post 4.34 earnings per share for the current year.

In related news, insider Janet Hayes sold 14,376 shares of the firm’s stock in a transaction that occurred on Friday, September 14th. The stock was sold at an average price of $68.10, for a total value of $979,005.60. Following the sale, the insider now directly owns 44,889 shares in the company, valued at approximately $3,056,940.90. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, EVP David Randolph King sold 24,323 shares of the firm’s stock in a transaction that occurred on Friday, August 31st. The shares were sold at an average price of $68.88, for a total value of $1,675,368.24. Following the completion of the sale, the executive vice president now owns 17,589 shares in the company, valued at $1,211,530.32. The disclosure for this sale can be found here. 0.87% of the stock is owned by company insiders.

A number of institutional investors and hedge funds have recently bought and sold shares of WSM. Robeco Institutional Asset Management B.V. boosted its stake in Williams-Sonoma by 6.8% during the 2nd quarter. Robeco Institutional Asset Management B.V. now owns 39,846 shares of the specialty retailer’s stock valued at $2,444,000 after purchasing an additional 2,537 shares in the last quarter. Moody Aldrich Partners LLC bought a new position in Williams-Sonoma during the 2nd quarter valued at $125,338,000. Chemical Bank boosted its stake in Williams-Sonoma by 21.5% during the 2nd quarter. Chemical Bank now owns 6,057 shares of the specialty retailer’s stock valued at $372,000 after purchasing an additional 1,070 shares in the last quarter. Advisors Asset Management Inc. boosted its stake in Williams-Sonoma by 79.7% during the 2nd quarter. Advisors Asset Management Inc. now owns 128,863 shares of the specialty retailer’s stock valued at $4,432,000 after purchasing an additional 57,154 shares in the last quarter. Finally, Millennium Management LLC bought a new position in Williams-Sonoma during the 1st quarter valued at $2,101,000.

Williams-Sonoma Company Profile

Williams-Sonoma, Inc operates as a multi-channel specialty retailer of various products for home. It operates through two segments, E-commerce and Retail. The company offers cooking, dining, and entertaining products, including cookware, tools, electrics, cutlery, tabletop and bar, outdoor, furniture, and a library of cookbooks under the Williams Sonoma brand, as well as home furnishings and decorative accessories under the Williams Sonoma Home brand; and furniture, bedding, bathroom accessories, rugs, curtains, lighting, tabletop, outdoor, and decorative accessories under the Pottery Barn brand.

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