Williams-Sonoma (NYSE:WSM) Shares Gap Down – Here’s Why

Williams-Sonoma, Inc. (NYSE:WSM)’s share price gapped down before the market opened on Wednesday . The stock had previously closed at $172.28, but opened at $157.80. Williams-Sonoma shares last traded at $154.22, with a volume of 1,143,900 shares traded.

Wall Street Analysts Forecast Growth

WSM has been the subject of several analyst reports. Jefferies Financial Group cut their target price on Williams-Sonoma from $226.00 to $208.00 and set a “buy” rating for the company in a research report on Thursday. Gordon Haskett upgraded Williams-Sonoma to a “hold” rating in a research report on Thursday, February 13th. Royal Bank of Canada lifted their price objective on Williams-Sonoma from $162.00 to $189.00 and gave the company an “outperform” rating in a research report on Thursday, November 21st. Telsey Advisory Group reiterated an “outperform” rating and issued a $230.00 price objective on shares of Williams-Sonoma in a research report on Monday. Finally, UBS Group upgraded Williams-Sonoma from a “sell” rating to a “neutral” rating and lifted their price objective for the company from $140.00 to $165.00 in a research report on Thursday. One research analyst has rated the stock with a sell rating, fourteen have issued a hold rating and four have given a buy rating to the company. Based on data from MarketBeat.com, the company currently has an average rating of “Hold” and an average price target of $176.13.

Williams-Sonoma Price Performance

The stock has a market capitalization of $20.35 billion, a price-to-earnings ratio of 19.55, a PEG ratio of 2.89 and a beta of 1.82. The business has a 50 day simple moving average of $197.81 and a 200-day simple moving average of $171.83.

Williams-Sonoma (NYSE:WSM) last posted its earnings results on Wednesday, March 19th. The specialty retailer reported $3.28 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.88 by $0.40. Williams-Sonoma had a return on equity of 51.56% and a net margin of 14.54%. The firm had revenue of $2.46 billion during the quarter, compared to analysts’ expectations of $2.34 billion. During the same period in the previous year, the firm earned $5.44 earnings per share. The company’s revenue was up 8.0% on a year-over-year basis. As a group, equities analysts predict that Williams-Sonoma, Inc. will post 8.36 earnings per share for the current year.

Williams-Sonoma Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Saturday, May 24th. Stockholders of record on Thursday, April 17th will be issued a $0.66 dividend. This represents a $2.64 dividend on an annualized basis and a dividend yield of 1.60%. This is a positive change from Williams-Sonoma’s previous quarterly dividend of $0.57. The ex-dividend date is Thursday, April 17th. Williams-Sonoma’s payout ratio is 26.98%.

Insider Activity

In related news, CFO Jeffrey Howie sold 1,408 shares of the company’s stock in a transaction dated Thursday, February 27th. The stock was sold at an average price of $194.32, for a total transaction of $273,602.56. Following the sale, the chief financial officer now owns 46,388 shares in the company, valued at approximately $9,014,116.16. This represents a 2.95 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, CEO Laura Alber sold 45,000 shares of the company’s stock in a transaction dated Tuesday, January 21st. The stock was sold at an average price of $207.76, for a total value of $9,349,200.00. Following the sale, the chief executive officer now owns 944,666 shares in the company, valued at $196,263,808.16. The trade was a 4.55 % decrease in their position. The disclosure for this sale can be found here. Corporate insiders own 1.50% of the company’s stock.

Institutional Trading of Williams-Sonoma

Several institutional investors and hedge funds have recently bought and sold shares of the business. 111 Capital bought a new stake in Williams-Sonoma in the fourth quarter valued at approximately $557,000. Wealth Enhancement Advisory Services LLC raised its stake in Williams-Sonoma by 111.7% in the fourth quarter. Wealth Enhancement Advisory Services LLC now owns 54,745 shares of the specialty retailer’s stock valued at $10,138,000 after buying an additional 28,880 shares during the period. PKO Investment Management Joint Stock Co bought a new stake in Williams-Sonoma in the fourth quarter valued at approximately $1,111,000. Siemens Fonds Invest GmbH raised its stake in Williams-Sonoma by 6.4% in the fourth quarter. Siemens Fonds Invest GmbH now owns 1,396 shares of the specialty retailer’s stock valued at $260,000 after buying an additional 84 shares during the period. Finally, Park Square Financial Group LLC bought a new stake in Williams-Sonoma in the fourth quarter valued at approximately $86,000. Institutional investors own 99.29% of the company’s stock.

Williams-Sonoma Company Profile

Williams-Sonoma, Inc operates as an omni-channel specialty retailer of various products for home. It offers cooking, dining, and entertaining products, such as cookware, tools, electrics, cutlery, tabletop and bar, outdoor, furniture, and a library of cookbooks under the Williams Sonoma Home brand, as well as home furnishings and decorative accessories under the Williams Sonoma lifestyle brand; and furniture, bedding, lighting, rugs, table essentials, and decorative accessories under the Pottery Barn brand.