Todays Report: The Stanley Black & Decker Inc. (SWK) Lowered to “Hold” at Zacks Investment Research

The Stanley Black & Decker Inc. (SWK) Lowered to “Hold” at Zacks Investment Research

Zacks Investment Research cut shares of Stanley Black & Decker Inc. (NYSE:SWK) from a buy rating to a hold rating in a research report sent to investors on Friday morning.

According to Zacks, “Stanley Black & Decker has solid long-term growth potential, backed by its strategy of shifting its business portfolio toward favored growth markets. Recently, the company agreed to acquire Newell Tools, that will strengthen the company's tools business through deeper penetration into markets worldwide. For 2016, the company raised its earnings per share guidance to $6.30-$6.50 and organic revenue growth forecast to 4%. The revised forecast was driven by improved Tools & Storage business and benefits from cost and productivity actions, partially offset by higher currency headwinds, weak industrial activities and other incremental costs. Also, headwinds like increasing expenses, huge debt level and active competition in all businesses might limit the company's prospects in the near term. Over the last 60 days, the Zacks Consensus Estimate has increased for 2016 while decreased for 2017.”

Other analysts have also recently issued reports about the stock. Zelman & Associates cut shares of Stanley Black & Decker from a buy rating to a hold rating in a report on Monday, July 25th. Imperial Capital reaffirmed a hold rating and issued a $107.00 price target on shares of Stanley Black & Decker in a report on Wednesday, June 29th. Longbow Research cut shares of Stanley Black & Decker from a buy rating to a neutral rating in a report on Monday, August 22nd. Credit Suisse Group AG reaffirmed a hold rating on shares of Stanley Black & Decker in a report on Tuesday, June 28th. Finally, Argus reaffirmed a hold rating on shares of Stanley Black & Decker in a report on Tuesday, July 26th. Ten investment analysts have rated the stock with a hold rating and three have assigned a buy rating to the company’s stock. The stock presently has an average rating of Hold and an average target price of $117.45.

Shares of Stanley Black & Decker (NYSE:SWK) traded down 0.55% during mid-day trading on Friday, hitting $120.56. 117,881 shares of the stock traded hands. The firm’s 50 day moving average price is $122.07 and its 200-day moving average price is $116.15. Stanley Black & Decker has a 12-month low of $88.72 and a 12-month high of $124.86. The stock has a market cap of $18.14 billion, a P/E ratio of 18.82 and a beta of 1.38.

Stanley Black & Decker (NYSE:SWK) last posted its earnings results on Friday, July 22nd. The company reported $1.84 EPS for the quarter, topping analysts’ consensus estimates of $1.72 by $0.12. The business had revenue of $2.90 billion for the quarter, compared to analysts’ expectations of $2.90 billion. Stanley Black & Decker had a net margin of 8.47% and a return on equity of 16.96%. The business’s revenue for the quarter was up 2.3% compared to the same quarter last year. During the same period in the previous year, the company posted $1.54 earnings per share. Analysts predict that Stanley Black & Decker will post $6.48 earnings per share for the current year.

The company also recently declared a quarterly dividend, which was paid on Tuesday, September 20th. Stockholders of record on Friday, September 2nd were given a dividend of $0.58 per share. The ex-dividend date was Wednesday, August 31st. This represents a $2.32 annualized dividend and a dividend yield of 1.91%. This is a positive change from Stanley Black & Decker’s previous quarterly dividend of $0.55. Stanley Black & Decker’s dividend payout ratio is currently 36.19%.

In related news, insider James J. Cannon sold 5,776 shares of the stock in a transaction dated Monday, August 1st. The shares were sold at an average price of $121.40, for a total value of $701,206.40. Following the completion of the transaction, the insider now owns 39,756 shares in the company, valued at approximately $4,826,378.40. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. Also, insider John H. Wyatt sold 12,750 shares of the stock in a transaction dated Thursday, September 8th. The shares were sold at an average price of $122.69, for a total transaction of $1,564,297.50. Following the completion of the transaction, the insider now owns 61,345 shares of the company’s stock, valued at approximately $7,526,418.05. The disclosure for this sale can be found here. 1.80% of the stock is currently owned by corporate insiders.

Institutional investors have recently made changes to their positions in the stock. Reilly Financial Advisors LLC raised its position in shares of Stanley Black & Decker by 500.0% in the second quarter. Reilly Financial Advisors LLC now owns 1,200 shares of the company’s stock worth $133,000 after buying an additional 1,000 shares in the last quarter. Krilogy Financial LLC raised its position in shares of Stanley Black & Decker by 9.4% in the second quarter. Krilogy Financial LLC now owns 1,192 shares of the company’s stock worth $133,000 after buying an additional 102 shares in the last quarter. Checchi Capital Advisers LLC raised its position in shares of Stanley Black & Decker by 3.3% in the second quarter. Checchi Capital Advisers LLC now owns 1,751 shares of the company’s stock worth $195,000 after buying an additional 56 shares in the last quarter. Duncker Streett & Co. Inc. increased its stake in shares of Stanley Black & Decker by 4.1% in the second quarter. Duncker Streett & Co. Inc. now owns 1,758 shares of the company’s stock worth $196,000 after buying an additional 69 shares during the last quarter. Finally, Buckingham Asset Management LLC acquired a new stake in shares of Stanley Black & Decker during the second quarter worth $200,000. Hedge funds and other institutional investors own 83.36% of the company’s stock.

About Stanley Black & Decker

Stanley Black & Decker, Inc is a provider of hand tools, power tools and related accessories, mechanical access solutions (automatic doors and commercial locking systems), electronic security and monitoring systems, healthcare solutions, engineered fastening systems, and products and services for various industrial applications.

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