Zacks Investment Research Downgrades WD-40 (WDFC) to Sell

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WD-40 (NASDAQ:WDFC) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a note issued to investors on Wednesday.

According to Zacks, “WD-40 Company is a tribe of passionate, committed professionals, all dedicated to the same goal: to create positive lasting memories in every interaction they have. They’re a global marketing organization dedicated to creating positive lasting memories by developing and selling products that solve problems in workshops, factories and homes around the world. They offer multi-purpose maintenance products, including aerosol sprays, non-aerosol trigger sprays, and in liquid form under the WD-40 Multi-Use brand for various consumer uses; and specialty maintenance products that comprise penetrants, degreasers, corrosion inhibitors, lubricants, and rust removers under the WD-40 Specialist brand name. The company also provides products under the WD-40 Bike product brand consisting of wet and dry chain lubricants, heavy-duty degreasers, and foaming wash products for avid and recreational cyclists, bike enthusiasts, and mechanics; multi-purpose and specialty drip oils, and spray lubricant products. “

Other equities research analysts have also recently issued reports about the stock. BidaskClub raised shares of WD-40 from a “buy” rating to a “strong-buy” rating in a research report on Saturday, September 8th. B. Riley boosted their price objective on shares of WD-40 from $135.00 to $152.00 and gave the company a “neutral” rating in a research report on Wednesday, July 11th. One analyst has rated the stock with a sell rating, three have assigned a hold rating and one has issued a buy rating to the company. The stock presently has a consensus rating of “Hold” and an average target price of $149.67.

WDFC traded up $1.33 during trading on Wednesday, hitting $171.94. The company had a trading volume of 516 shares, compared to its average volume of 91,647. The stock has a market capitalization of $2.37 billion, a P/E ratio of 41.76, a P/E/G ratio of 3.80 and a beta of 0.52. WD-40 has a one year low of $110.80 and a one year high of $184.25. The company has a current ratio of 1.96, a quick ratio of 1.53 and a debt-to-equity ratio of 0.40.

WD-40 (NASDAQ:WDFC) last posted its quarterly earnings data on Thursday, October 18th. The specialty chemicals company reported $1.54 EPS for the quarter, beating the consensus estimate of $0.99 by $0.55. The business had revenue of $102.60 million for the quarter. WD-40 had a net margin of 15.96% and a return on equity of 38.51%. The company’s revenue was up 6.2% compared to the same quarter last year. During the same period in the prior year, the firm posted $1.01 earnings per share. On average, equities research analysts predict that WD-40 will post 4.5 EPS for the current fiscal year.

In other WD-40 news, VP Stanley Sewitch, Jr. sold 2,167 shares of the business’s stock in a transaction dated Thursday, October 25th. The shares were sold at an average price of $163.80, for a total transaction of $354,954.60. The sale was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, insider William B. Noble sold 2,000 shares of the business’s stock in a transaction dated Wednesday, August 15th. The stock was sold at an average price of $166.13, for a total transaction of $332,260.00. The disclosure for this sale can be found here. Insiders have sold a total of 6,334 shares of company stock worth $1,047,262 over the last three months. Insiders own 2.09% of the company’s stock.

A number of large investors have recently modified their holdings of the business. Acropolis Investment Management LLC acquired a new position in shares of WD-40 during the 3rd quarter worth about $103,000. Stratos Wealth Partners LTD. acquired a new position in shares of WD-40 during the 3rd quarter worth about $103,000. Fort L.P. acquired a new position in shares of WD-40 during the 2nd quarter worth about $115,000. Bay Colony Advisory Group Inc d b a Bay Colony Advisors acquired a new position in shares of WD-40 during the 2nd quarter worth about $124,000. Finally, Benjamin F. Edwards & Company Inc. increased its stake in shares of WD-40 by 172.8% during the 3rd quarter. Benjamin F. Edwards & Company Inc. now owns 832 shares of the specialty chemicals company’s stock worth $143,000 after purchasing an additional 527 shares during the last quarter. 89.03% of the stock is currently owned by hedge funds and other institutional investors.

About WD-40

WD-40 Company engages in the development and sale of maintenance products, and homecare and cleaning products. It offers multi-purpose maintenance products, including aerosol sprays, non-aerosol trigger sprays, and in liquid-bulk form products under the WD-40 Multi-Use brand name for various consumer uses; specialty maintenance products, such as penetrants, degreasers, corrosion inhibitors, greases, lubricants, and rust removers under the WD-40 Specialist brand name; and bicycle maintenance products under the WD-40 Bike brand name comprising wet and dry chain lubricants, chain cleaners and degreasers, and foaming wash products that are designed for avid and recreational cyclists, bike enthusiasts, and mechanics.

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