Williams-Sonoma (NYSE:WSM) Shares Gap Down – Should You Sell?

Williams-Sonoma, Inc. (NYSE:WSM) shares gapped down prior to trading 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 trading hands.

Wall Street Analysts Forecast Growth

Several equities analysts recently issued reports on the company. Loop Capital lifted their price objective on Williams-Sonoma from $145.00 to $180.00 and gave the stock a “hold” rating in a report on Thursday, November 21st. Telsey Advisory Group reaffirmed an “outperform” rating and set a $230.00 price objective on shares of Williams-Sonoma in a report on Monday. Royal Bank of Canada raised their price target on Williams-Sonoma from $162.00 to $189.00 and gave the stock an “outperform” rating in a research report on Thursday, November 21st. Evercore ISI raised their price target on Williams-Sonoma from $140.00 to $180.00 and gave the stock an “in-line” rating in a research report on Thursday, November 21st. Finally, Gordon Haskett raised Williams-Sonoma to a “hold” rating in a research report on Thursday, February 13th. Two research analysts have rated the stock with a sell rating, thirteen have given a hold rating and four have given a buy rating to the company’s stock. According to MarketBeat.com, the company has an average rating of “Hold” and a consensus price target of $176.28.

Williams-Sonoma Price Performance

The stock has a market capitalization of $19.44 billion, a P/E ratio of 18.24, a price-to-earnings-growth ratio of 2.89 and a beta of 1.82. The company has a fifty day moving average of $198.96 and a two-hundred day moving average of $171.92.

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

Williams-Sonoma Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Saturday, May 24th. Investors 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 yield of 1.67%. This is a positive change from Williams-Sonoma’s previous quarterly dividend of $0.57. Williams-Sonoma’s dividend payout ratio is 26.98%.

Insider Buying and Selling

In other Williams-Sonoma news, CEO Laura Alber sold 45,000 shares of the company’s stock in a transaction that occurred on 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 completion of the sale, the chief executive officer now directly owns 944,666 shares in the company, valued at $196,263,808.16. This represents a 4.55 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CFO Jeffrey Howie sold 1,408 shares of the company’s stock in a transaction that occurred on Thursday, February 27th. The stock was sold at an average price of $194.32, for a total value of $273,602.56. Following the completion of the sale, the chief financial officer now owns 46,388 shares of the company’s stock, valued at $9,014,116.16. This trade represents a 2.95 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Corporate insiders own 1.50% of the company’s stock.

Institutional Investors Weigh In On Williams-Sonoma

Institutional investors and hedge funds have recently modified their holdings of the stock. Smithfield Trust Co lifted its position in shares of Williams-Sonoma by 100.0% during the 3rd quarter. Smithfield Trust Co now owns 160 shares of the specialty retailer’s stock valued at $25,000 after acquiring an additional 80 shares during the last quarter. Brooklyn Investment Group purchased a new stake in shares of Williams-Sonoma in the third quarter valued at $28,000. Hobbs Group Advisors LLC lifted its holdings in shares of Williams-Sonoma by 100.0% in the third quarter. Hobbs Group Advisors LLC now owns 236 shares of the specialty retailer’s stock valued at $37,000 after purchasing an additional 118 shares in the last quarter. Heck Capital Advisors LLC purchased a new stake in shares of Williams-Sonoma in the fourth quarter valued at $37,000. Finally, Newbridge Financial Services Group Inc. purchased a new stake in shares of Williams-Sonoma in the fourth quarter valued at $38,000. Institutional investors and hedge funds 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.