Stanley Black & Decker Inc. (SWK) Volatility Spurs A Quest For Clarity


    Massachusetts Financial Services. recently announced the acquisition of new stake in Stanley Black & Decker Inc. (NYSE:SWK). The institutional investor has increased its shareholding in the Industrials company by 1.03% to 7.55 million shares with purchase of 77168.0 shares. This fresh investment now brings its stake to 4.90% valued currently at $1.05 billion. In addition, Capital Research & Management Co. raised its holdings by 0.44 million to 7.33 million shares. And JPMorgan Investment Management, I. has lifted its position by 29.30% or 1.41 million shares – to 6.24 million shares.

    With over 1.09 million Stanley Black & Decker Inc. (SWK) shares trading Tuesday and a closing price of $152.31 on the day, the dollar volume was approximately $165.86 million. The shares have shown a positive weekly performance of 5.03% and its price on 07/21/20 lost nearly -0.96%. Currently, there are 154.13M common shares owned by the public and among those 153.74M shares have been available to trade.

    An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 20 analysts who have offered their price forecasts for SWK have a consensus price objective of $156.00. The analysts have set the share’s price value over the next 12 months at a high of $180.00 and a low of $134.00 should the stock experience a downside. Incidentally, analysts’ outlook for the Stanley Black & Decker Inc. stock is 2.20 for the next 12 months. The average price target is -4.41% below its last price level and a downside to the estimated low will see the stock lose -13.66% over that period. But an upside of 15.38% will see the stock hit the forecast high price target while mean target price for the stock is $156.50.

    Insiders at the company have transacted a total of 146 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 62 of these insider trades were purchases, accounting for 335,944 shares. Insider sales of the common stock occurred on 84 occasions, with total insider shares sold totaling 279,755 shares.

    The top 3 mutual fund holders in Stanley Black & Decker Inc. are Vanguard Total Stock Market Index, MFS Value Fund, and American Funds Investment Company. Vanguard Total Stock Market Index owns 4.55 million shares of the company’s stock, all valued at over $634.63 million. The company bought an additional 0.16 million shares recently to bring their total holdings to about 2.95% of the shares outstanding. MFS Value Fund bought 31958.0 shares to see its total holdings expand to 3.58 million shares valued at over $499.3 million and representing 2.32% of the shares outstanding. American Funds Investment Company bought 1.94 million shares to bring its total holdings to over 3.56 million shares at a value of $496.84 million. American Funds Investment Company now owns shares totaling to 2.31% of the shares outstanding.

    Shares of Stanley Black & Decker Inc. (NYSE: SWK) opened at $153.73, down -$0.06 from a prior closing price of $153.79. However, the script later closed the day at $152.31, down -0.96%. The company’s stock has a 5-day price change of 5.03% and 44.62% over the past three months. SWK shares are trading -7.21% year to date (YTD), with the 12-month market performance up to 8.69% higher. It has a 12-month low price of $70.00 and touched a high of $173.67 over the same period. Currently, 1.09 million shares have been traded, compared to an average intraday trading volume of 1.67 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by 7.40%, 13.92%, and 8.88% respectively.

    Institutional ownership of Stanley Black & Decker Inc. (NYSE: SWK) shares accounts for 89.90% of the company’s 154.13M shares outstanding. Mutual fund holders own 34.88%, while other institutional holders and individual stakeholders account for 54.88% and 1.74% respectively.

    It has a market capitalization of $23.62B and a beta (3y monthly) value of 1.55. The stock’s trailing 12-month PE ratio is 25.16, while the earnings-per-share (ttm) stands at $6.11. The company has a PEG of 30.50 and a Quick Ratio of 0.60 with the debt-to-equity ratio at 0.79. Price movements for the stock have been influenced by the stock’s volatility, which stands at 2.07% over the week and 2.85% over the month.

    Analysts forecast that Stanley Black & Decker Inc. (SWK) will achieve an EPS of $1.07 for the current quarter, $1.77 for the next quarter and $7.58 for 2021. The lowest estimate earnings-per-share for the quarter is $0.1 while analysts give the company a high EPS estimate of $1.62. Comparatively, EPS for the current quarter was $2.66 a year ago. Earnings per share for the fiscal year are expected to increase by 19.60%, and 24.52% over the next financial year. EPS should shrink at an annualized rate of 0.83% over the next five years, compared to 3.40% over the past 5-year period.

    If you are looking to buy this stock, then you may note that the average analyst recommendation by 20 brokerage firm advisors rate Stanley Black & Decker Inc. (SWK) as a “Moderate Buy” at a consensus score of 2.20. Specifically, 12 Wall Street analysts polled rate the stock as a buy, while 7 of the 20 advise that investors “hold,” and 0 rated it as a “Sell.”

    Looking at the support for the SWK, a number of firms have released research notes about the stock. Wolfe Research stated their Outperform rating for the stock in a research note on June 25, 2020, with the firm’s price target at $159. Credit Suisse coverage for the Stanley Black & Decker Inc. (SWK) stock in a research note released on May 28, 2020 offered a Neutral rating with a price target of $125. BofA/Merrill was of a view on May 12, 2020 that the stock is Neutral, while Citigroup gave the stock Buy rating on February 19, 2020, issuing a price target of $205. UBS on their part issued Buy rating on December 12, 2019.


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