Zacks Investment Research downgraded shares of Armstrong World Industries Inc. (NYSE:AWI) from a hold rating to a strong sell rating in a report published on Tuesday morning.
According to Zacks, “Armstrong World’s third-quarter adjusted earnings surged 29% y-o-y and came in line with the Zacks Consensus Estimate. Armstrong World expects full-year constant currency sales to be in the $1.24 billion to $1.27 billion range, adjusted EBITDA is now expected to range from $315 million to $325 million and adjusted earnings per share in the range of $2.20 to $2.30. Weakness in international markets, specifically, in the Middle East, impact of Brexit and increased charges related to the separation of flooring business remain concerns. In the Pacific Rim, commercial office markets in China continued to experience challenging conditions while India markets were impacted by tight project financing. The underlying fundamentals for repair and remodel (R&R) activity remain uneven as demand is projected to be limited. This will likely result in choppy R&R activity. Moreover, emerging markets will be impacted by lower commodity prices.”
AWI has been the topic of a number of other research reports. Bank of America Corp. set a $39.00 price target on shares of Armstrong World Industries and gave the stock a sell rating in a report on Tuesday, October 4th. Royal Bank Of Canada reduced their target price on shares of Armstrong World Industries from $47.00 to $43.00 and set a sector perform rating on the stock in a report on Tuesday, November 1st. Evercore ISI started coverage on shares of Armstrong World Industries in a report on Monday, November 14th. They set a buy rating and a $46.00 target price on the stock. Zelman & Associates lowered shares of Armstrong World Industries from a buy rating to a hold rating in a report on Tuesday, November 1st. Finally, RBC Capital Markets reaffirmed a sector perform rating and set a $43.00 target price (down previously from $47.00) on shares of Armstrong World Industries in a report on Tuesday, November 1st. Four equities research analysts have rated the stock with a sell rating, seven have given a hold rating and three have assigned a buy rating to the company’s stock. Armstrong World Industries has an average rating of Hold and an average target price of $43.92.
Shares of Armstrong World Industries (NYSE:AWI) opened at 41.75 on Tuesday. The firm has a 50-day moving average of $39.73 and a 200 day moving average of $40.88. Armstrong World Industries has a 1-year low of $35.92 and a 1-year high of $50.36. The company has a market capitalization of $2.30 billion, a P/E ratio of 36.78 and a beta of 1.37.
Armstrong World Industries (NYSE:AWI) last issued its quarterly earnings results on Monday, October 31st. The company reported $0.76 EPS for the quarter, hitting the Zacks’ consensus estimate of $0.76. The firm had revenue of $334.90 million for the quarter, compared to analyst estimates of $343.50 million. Armstrong World Industries had a net margin of 3.55% and a return on equity of 22.79%. The business’s revenue for the quarter was down .3% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $0.80 EPS. On average, equities research analysts expect that Armstrong World Industries will post $2.25 earnings per share for the current year.
In other news, Director Roy W. Templin purchased 2,670 shares of the company’s stock in a transaction on Wednesday, November 2nd. The stock was acquired at an average price of $37.16 per share, with a total value of $99,217.20. Following the transaction, the director now directly owns 4,816 shares of the company’s stock, valued at approximately $178,962.56. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Company insiders own 0.60% of the company’s stock.
A number of large investors have recently made changes to their positions in AWI. D.A. Davidson & CO. bought a new stake in Armstrong World Industries during the third quarter valued at approximately $162,000. Price T Rowe Associates Inc. MD boosted its stake in Armstrong World Industries by 1.6% in the third quarter. Price T Rowe Associates Inc. MD now owns 446,381 shares of the company’s stock valued at $18,444,000 after buying an additional 6,826 shares in the last quarter. Gotham Asset Management LLC bought a new stake in Armstrong World Industries during the third quarter valued at approximately $14,132,000. HBK Investments L P boosted its stake in Armstrong World Industries by 41.0% in the third quarter. HBK Investments L P now owns 11,000 shares of the company’s stock valued at $455,000 after buying an additional 3,200 shares in the last quarter. Finally, HighVista Strategies LLC bought a new stake in Armstrong World Industries during the third quarter valued at approximately $6,058,000. 99.51% of the stock is owned by institutional investors and hedge funds.
Armstrong World Industries Company Profile
Armstrong World Industries, Inc is a producer of flooring products and ceiling systems for use in the construction and renovation of residential, commercial and institutional buildings. The Company operates in four segments: Building Products, which produces suspended mineral fiber, soft fiber and metal ceiling systems for use in commercial, institutional and residential settings; Resilient Flooring, which designs, manufactures, sources and sells a range of floor coverings primarily for homes and commercial and institutional buildings; Wood Flooring segment, which designs, manufactures, sources and sells hardwood flooring products for use in new residential construction and renovation, with some commercial applications in stores, restaurants and high-end offices, and Unallocated Corporate.