Williams-Sonoma (NYSE:WSM) Shares Gap Up Following Earnings Beat

Shares of Williams-Sonoma, Inc. (NYSE:WSM) gapped up prior to trading on Wednesday after the company announced better than expected quarterly earnings. The stock had previously closed at $197.93, but opened at $204.01. Williams-Sonoma shares last traded at $195.94, with a volume of 663,837 shares traded.

The specialty retailer reported $2.00 EPS for the quarter, topping analysts’ consensus estimates of $1.79 by $0.21. The business had revenue of $1.84 billion during the quarter, compared to the consensus estimate of $1.82 billion. Williams-Sonoma had a return on equity of 52.79% and a net margin of 14.35%.The company’s revenue for the quarter was up 2.7% compared to the same quarter last year. During the same period last year, the firm earned $1.74 earnings per share. Williams-Sonoma has set its FY 2025 guidance at EPS.

Williams-Sonoma Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Friday, August 22nd. Investors of record on Friday, July 18th were paid a $0.66 dividend. This represents a $2.64 dividend on an annualized basis and a yield of 1.4%. The ex-dividend date was Friday, July 18th. Williams-Sonoma’s dividend payout ratio (DPR) is 29.90%.

Wall Street Analyst Weigh In

A number of research firms recently commented on WSM. Wells Fargo & Company lifted their price target on Williams-Sonoma from $170.00 to $190.00 and gave the stock an “equal weight” rating in a research note on Monday. Jefferies Financial Group restated a “buy” rating on shares of Williams-Sonoma in a research note on Tuesday, May 13th. Royal Bank Of Canada lifted their target price on Williams-Sonoma from $182.00 to $212.00 and gave the company an “outperform” rating in a research note on Thursday, August 14th. Evercore ISI decreased their target price on Williams-Sonoma from $175.00 to $170.00 and set an “in-line” rating for the company in a research note on Tuesday, June 17th. Finally, Zelman & Associates assumed coverage on Williams-Sonoma in a research note on Thursday, May 15th. They issued an “underperform” rating for the company. One investment analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating, ten have assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and an average price target of $189.65.

Insider Activity at Williams-Sonoma

In other news, CFO Jeffrey Howie sold 4,000 shares of the business’s stock in a transaction that occurred on Tuesday, July 1st. The stock was sold at an average price of $168.96, for a total transaction of $675,840.00. Following the completion of the transaction, the chief financial officer directly owned 34,388 shares in the company, valued at approximately $5,810,196.48. The trade was a 10.42% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, CEO Laura Alber sold 30,000 shares of the business’s stock in a transaction that occurred on Tuesday, July 15th. The stock was sold at an average price of $168.18, for a total value of $5,045,400.00. Following the transaction, the chief executive officer owned 966,927 shares of the company’s stock, valued at approximately $162,617,782.86. This represents a 3.01% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 38,000 shares of company stock valued at $6,349,680. Insiders own 1.10% of the company’s stock.

Hedge Funds Weigh In On Williams-Sonoma

Several hedge funds and other institutional investors have recently made changes to their positions in WSM. Maseco LLP acquired a new position in shares of Williams-Sonoma during the second quarter worth approximately $26,000. Vermillion & White Wealth Management Group LLC boosted its position in shares of Williams-Sonoma by 130.8% during the second quarter. Vermillion & White Wealth Management Group LLC now owns 180 shares of the specialty retailer’s stock worth $29,000 after buying an additional 102 shares during the period. Quarry LP boosted its position in shares of Williams-Sonoma by 99.0% during the first quarter. Quarry LP now owns 199 shares of the specialty retailer’s stock worth $31,000 after buying an additional 99 shares during the period. Sentry Investment Management LLC acquired a new position in shares of Williams-Sonoma during the first quarter worth approximately $32,000. Finally, Costello Asset Management INC acquired a new position in shares of Williams-Sonoma during the first quarter worth approximately $32,000. 99.29% of the stock is currently owned by institutional investors and hedge funds.

Williams-Sonoma Stock Down 2.7%

The company has a 50-day moving average price of $182.75 and a 200-day moving average price of $172.66. The firm has a market capitalization of $23.69 billion, a price-to-earnings ratio of 21.81, a P/E/G ratio of 3.20 and a beta of 1.47.

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.