Williams-Sonoma (WSM) Stock Rating Lowered by Zacks Investment Research

Williams-Sonoma (NYSE:WSM) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research note issued to investors on Tuesday.

According to Zacks, “Shares of Williams-Sonoma have outperformed its industry in the past six months. Continued enhancement of e-commerce channel, optimization of supply chain and the transformation of retail fleet by investing in new and remodeled stores are expected to drive growth for William Sonoma. Moreover, the company’s focus on product innovation plays a huge role in the company’s success. Also, earnings estimates for 2018 and 2019 have increased over the past 60 days, reflecting upside potential for the stock’s earnings prospect. However, high costs associated with continued investments in e-commerce and a competitive retail environment mar growth prospects. Further, supply-chain investments are creating pressure on the company’s operating margins. Intense competition and the company’s dependency on consumer discretionary spending further add to the woes.”

Other equities analysts have also issued reports about the stock. Robert W. Baird lifted their target price on shares of Williams-Sonoma from $52.00 to $65.00 and gave the company a “neutral” rating in a report on Thursday, August 23rd. Argus set a $67.00 target price on shares of Williams-Sonoma and gave the company a “buy” rating in a report on Friday, July 13th. Wedbush set a $62.00 target price on shares of Williams-Sonoma and gave the company a “hold” rating in a report on Wednesday, August 15th. Loop Capital lifted their target price on shares of Williams-Sonoma to $65.00 and gave the company a “hold” rating in a report on Thursday, August 23rd. They noted that the move was a valuation call. Finally, Telsey Advisory Group reiterated a “market perform” rating and set a $69.00 target price (up from $64.00) on shares of Williams-Sonoma in a report on Thursday, August 23rd. Five equities research analysts have rated the stock with a sell rating, nineteen have assigned a hold rating and one has issued a buy rating to the stock. The company presently has an average rating of “Hold” and an average price target of $59.23.

WSM traded down $0.24 on Tuesday, hitting $58.28. The company had a trading volume of 570,142 shares, compared to its average volume of 1,352,432. The company has a debt-to-equity ratio of 0.28, a current ratio of 1.56 and a quick ratio of 0.40. Williams-Sonoma has a 52-week low of $44.01 and a 52-week high of $73.99. The firm has a market capitalization of $4.74 billion, a PE ratio of 16.14, a price-to-earnings-growth ratio of 1.73 and a beta of 0.83.

Williams-Sonoma (NYSE:WSM) last issued its quarterly earnings data on Wednesday, August 22nd. The specialty retailer reported $0.77 EPS for the quarter, topping the Thomson Reuters’ consensus estimate of $0.68 by $0.09. Williams-Sonoma had a net margin of 4.84% and a return on equity of 28.68%. The business had revenue of $1.28 billion during the quarter, compared to analyst estimates of $1.26 billion. During the same period last year, the business posted $0.61 earnings per share. Williams-Sonoma’s quarterly revenue was up 6.1% compared to the same quarter last year. Analysts expect that Williams-Sonoma will post 4.34 EPS for the current fiscal year.

In other news, insider Janet Hayes sold 14,376 shares of the business’s stock in a transaction on Friday, September 14th. The shares were sold at an average price of $68.10, for a total transaction of $979,005.60. Following the completion of the sale, the insider now owns 44,889 shares of the company’s stock, valued at approximately $3,056,940.90. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, EVP David Randolph King sold 24,323 shares of the business’s stock in a transaction on Friday, August 31st. The shares were sold at an average price of $68.88, for a total transaction of $1,675,368.24. Following the sale, the executive vice president now directly owns 17,589 shares of the company’s stock, valued at approximately $1,211,530.32. The disclosure for this sale can be found here. Insiders own 0.87% of the company’s stock.

Hedge funds have recently modified their holdings of the company. Itau Unibanco Holding S.A. bought a new position in Williams-Sonoma in the 2nd quarter worth $101,000. Moody Aldrich Partners LLC bought a new position in Williams-Sonoma in the 2nd quarter worth $125,338,000. First Mercantile Trust Co. bought a new position in Williams-Sonoma in the 2nd quarter worth $175,000. Enterprise Financial Services Corp bought a new position in Williams-Sonoma in the 2nd quarter worth $177,000. Finally, Pillar Pacific Capital Management LLC bought a new position in Williams-Sonoma in the 2nd quarter worth $209,000.

About Williams-Sonoma

Williams-Sonoma, Inc operates as a multi-channel specialty retailer of various products for home. It operates through two segments, E-commerce and Retail. The company offers cooking, dining, and entertaining products, including cookware, tools, electrics, cutlery, tabletop and bar, outdoor, furniture, and a library of cookbooks under the Williams Sonoma brand, as well as home furnishings and decorative accessories under the Williams Sonoma Home brand; and furniture, bedding, bathroom accessories, rugs, curtains, lighting, tabletop, outdoor, and decorative accessories under the Pottery Barn brand.

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