Value Hunters: Look To Williams-Sonoma Inc. (WSM)

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Capital Research & Management Co…. recently announced the acquisition of new stake in Williams-Sonoma Inc. (NYSE:WSM). The institutional investor has increased its shareholding in the Consumer Cyclical company by 3.14% to 8.25 million shares with purchase of 0.25 million shares. This fresh investment now brings its stake to 10.61% valued currently at $676.6 million. In addition, The Vanguard Group, Inc. raised its holdings by 0.65 million to 8.08 million shares. And Aristotle Capital Management LLC has lifted its position by 2.36% or 0.12 million shares – to 5.18 million shares.

With over 0.74 million Williams-Sonoma Inc. (WSM) shares trading Friday and a closing price of $84.91 on the day, the dollar volume was approximately $62.71 million. The shares have shown a positive weekly performance of 1.32% and its price on 07/24/20 lost nearly -0.47%. Currently, there are 77.26M common shares owned by the public and among those 76.85M 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: 22 analysts who have offered their price forecasts for WSM have a consensus price objective of $79.50. The analysts have set the share’s price value over the next 12 months at a high of $98.00 and a low of $45.00 should the stock experience a downside. Incidentally, analysts’ outlook for the Williams-Sonoma Inc. stock is 2.80 for the next 12 months. The average price target is -8.94% below its last price level and a downside to the estimated low will see the stock lose -88.69% over that period. But an upside of 13.36% will see the stock hit the forecast high price target while mean target price for the stock is $78.50.

Insiders at the company have transacted a total of 109 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 44 of these insider trades were purchases, accounting for 610,671 shares. Insider sales of the common stock occurred on 65 occasions, with total insider shares sold totaling 530,718 shares.

The top 3 mutual fund holders in Williams-Sonoma Inc. are American Funds AMCAP Fund, American Mutual Fund, and Vanguard Total Stock Market Index. American Funds AMCAP Fund owns 3.55 million shares of the company’s stock, all valued at over $290.74 million. The company sold -0.18 million shares recently to bring their total holdings to about 4.56% of the shares outstanding. Vanguard Total Stock Market Index sold 32852.0 shares to bring its total holdings to over 2.21 million shares at a value of $180.97 million. Vanguard Total Stock Market Index now owns shares totaling to 2.84% of the shares outstanding.

Shares of Williams-Sonoma Inc. (NYSE: WSM) opened at $84.44, down -$0.87 from a prior closing price of $85.31. However, the script later closed the day at $84.91, down -0.47%. The company’s stock has a 5-day price change of 1.32% and 46.45% over the past three months. WSM shares are trading 15.62% year to date (YTD), with the 12-month market performance up to 25.42% higher. It has a 12-month low price of $26.01 and touched a high of $88.31 over the same period. Currently, 0.74 million shares have been traded, compared to an average intraday trading volume of 1.60 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 1.22%, 5.36%, and 24.03% respectively.

Institutional ownership of Williams-Sonoma Inc. (NYSE: WSM) 77.26M shares outstanding. Mutual fund holders own 46.96%, while other institutional holders and individual stakeholders account for 56.13% and 20.36% respectively.

It has a market capitalization of $6.65B and a beta (3y monthly) value of 1.68. The stock’s trailing 12-month PE ratio is 19.75, while the earnings-per-share (ttm) stands at $4.30. Price movements for the stock have been influenced by the stock’s volatility, which stands at 3.64% over the week and 2.96% over the month.

Analysts forecast that Williams-Sonoma Inc. (WSM) will achieve an EPS of $0.88 for the current quarter, $0.95 for the next quarter and $4.87 for 2022. The lowest estimate earnings-per-share for the quarter is $0.54 while analysts give the company a high EPS estimate of $1.14. Comparatively, EPS for the current quarter was $0.87 a year ago. Earnings per share for the fiscal year are expected to increase by 14.50%, and 7.99% over the next financial year. EPS should shrink at an annualized rate of -3.45% over the next five years, compared to 6.70% over the past 5-year period.

If you are looking to buy this stock, then you may note that the average analyst recommendation by 22 brokerage firm advisors rate Williams-Sonoma Inc. (WSM) as a “Moderate Buy” at a consensus score of 2.80. Specifically, 4 Wall Street analysts polled rate the stock as a buy, while 12 of the 22 advise that investors “hold,” and 3 rated it as a “Sell.”

Looking at the support for the WSM, a number of firms have released research notes about the stock. Wells Fargo stated their Equal Weight rating for the stock in a research note on June 18, 2020, with the firm’s price target at $90. Wedbush coverage for the Williams-Sonoma Inc. (WSM) stock in a research note released on May 29, 2020 offered a Outperform rating with a price target of $90. UBS was of a view on May 29, 2020 that the stock is Neutral, while Telsey Advisory Group gave the stock Outperform rating on May 29, 2020, issuing a price target of $80- $98. Stifel on their part issued Hold rating on May 29, 2020.

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