Stanley Black & Decker (SWK) Downgraded by Zacks Investment Research to Hold

Zacks Investment Research cut shares of Stanley Black & Decker (NYSE:SWK) from a buy rating to a hold rating in a report issued on Thursday morning, Zacks.com reports.

According to Zacks, “In the past three months, Stanley Black & Decker's shares have outperformed the industry. In the first quarter of 2019, earnings beat estimates by 19.3% while grew 2.2% year over year, driven by healthy sales, operational performance, tax benefits and lower share count. For 2019, exposure in emerging markets, favorable e-commerce trend, cost-saving initiatives, pricing actions and solid demand for popular brands will be boons. Organic sales are likely to increase roughly 4% and adjusted earnings are anticipated to grow 4-7% year over year to $8.50-$8.70. The earnings projection is above previously mentioned $8.45-$8.65. However, the company estimates tariffs, foreign currency woes and commodity inflation to have an adverse impact of $340 million. Also, the Industrial segment's organic sales are predicted to decline due to weak automotive system sales and flat hydraulic tools business.”

Several other analysts have also recently issued reports on the company. Wells Fargo & Co cut their target price on Stanley Black & Decker from $150.00 to $141.00 and set an outperform rating for the company in a research report on Wednesday, January 23rd. Credit Suisse Group set a $155.00 price target on Stanley Black & Decker and gave the company a buy rating in a report on Friday, January 11th. Raymond James restated a hold rating on shares of Stanley Black & Decker in a report on Wednesday, January 23rd. Buckingham Research raised their price target on Stanley Black & Decker from $122.00 to $148.00 and gave the company a neutral rating in a report on Wednesday, April 17th. Finally, Barclays raised their price target on Stanley Black & Decker from $145.00 to $158.00 and gave the company an overweight rating in a report on Thursday, April 25th. Three analysts have rated the stock with a hold rating and sixteen have issued a buy rating to the stock. The company has a consensus rating of Buy and a consensus target price of $157.13.

Shares of SWK opened at $142.19 on Thursday. The company has a debt-to-equity ratio of 0.54, a current ratio of 0.91 and a quick ratio of 0.43. The stock has a market capitalization of $21.55 billion, a price-to-earnings ratio of 17.45, a P/E/G ratio of 2.08 and a beta of 1.25. Stanley Black & Decker has a 52 week low of $106.41 and a 52 week high of $155.22.

Stanley Black & Decker (NYSE:SWK) last issued its quarterly earnings results on Wednesday, April 24th. The industrial products company reported $1.42 EPS for the quarter, topping analysts’ consensus estimates of $1.10 by $0.32. The business had revenue of $3.33 billion during the quarter, compared to analysts’ expectations of $3.30 billion. Stanley Black & Decker had a return on equity of 17.01% and a net margin of 4.57%. The business’s quarterly revenue was up 3.9% on a year-over-year basis. During the same quarter in the prior year, the business posted $1.39 earnings per share. As a group, research analysts anticipate that Stanley Black & Decker will post 8.63 earnings per share for the current fiscal year.

The business also recently declared a quarterly dividend, which will be paid on Tuesday, June 18th. Stockholders of record on Tuesday, June 4th will be issued a $0.66 dividend. The ex-dividend date is Monday, June 3rd. This represents a $2.64 dividend on an annualized basis and a dividend yield of 1.86%. Stanley Black & Decker’s dividend payout ratio is presently 32.39%.

In other news, SVP Jaime A. Ramirez sold 1,000 shares of Stanley Black & Decker stock in a transaction on Tuesday, February 19th. The stock was sold at an average price of $136.26, for a total value of $136,260.00. Following the transaction, the senior vice president now directly owns 39,893 shares in the company, valued at approximately $5,435,820.18. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider Robert H. Raff, Jr. sold 6,179 shares of Stanley Black & Decker stock in a transaction on Friday, May 3rd. The shares were sold at an average price of $151.66, for a total value of $937,107.14. Following the completion of the transaction, the insider now owns 14,116 shares in the company, valued at $2,140,832.56. The disclosure for this sale can be found here. Insiders sold a total of 129,831 shares of company stock worth $18,933,275 over the last quarter. Company insiders own 1.03% of the company’s stock.

Several large investors have recently made changes to their positions in the company. Baldwin Investment Management LLC increased its holdings in shares of Stanley Black & Decker by 9.6% in the 1st quarter. Baldwin Investment Management LLC now owns 2,850 shares of the industrial products company’s stock valued at $388,000 after acquiring an additional 250 shares during the period. King Luther Capital Management Corp increased its holdings in shares of Stanley Black & Decker by 3.1% in the 1st quarter. King Luther Capital Management Corp now owns 89,099 shares of the industrial products company’s stock valued at $12,133,000 after acquiring an additional 2,665 shares during the period. Campbell & CO Investment Adviser LLC purchased a new position in shares of Stanley Black & Decker in the 1st quarter valued at $212,000. Rockefeller Capital Management L.P. grew its stake in Stanley Black & Decker by 1,630.2% during the 1st quarter. Rockefeller Capital Management L.P. now owns 744 shares of the industrial products company’s stock worth $101,000 after buying an additional 701 shares during the last quarter. Finally, Connors Investor Services Inc. grew its stake in Stanley Black & Decker by 14.5% during the 1st quarter. Connors Investor Services Inc. now owns 71,770 shares of the industrial products company’s stock worth $9,773,000 after buying an additional 9,097 shares during the last quarter. Institutional investors and hedge funds own 88.18% of the company’s stock.

About Stanley Black & Decker

Stanley Black & Decker, Inc engages in the provision of power and hand tools, and related accessories, products, services and equipment for oil & gas and infrastructure applications, commercial electronic security and monitoring systems, healthcare solutions, and mechanical access solutions. It operates through the following three segments: Tools and Storage, Industrial, and Security.

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