Zacks Investment Research Upgrades Stanley Black & Decker (NYSE:SWK) to “Buy”

Stanley Black & Decker (NYSE:SWK) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research report issued to clients and investors on Friday, Zacks.com reports. The brokerage currently has a $150.00 price objective on the industrial products company’s stock. Zacks Investment Research‘s target price points to a potential upside of 6.67% from the stock’s previous close.

According to Zacks, “In the past six months, Stanley Black & Decker's shares have outperformed the industry. The company's growth in 2019 is likely to be driven by exposure in emerging markets, favorable e-commerce trend, cost-saving initiatives, pricing actions and solid demand for popular brands. Organic sales are predicted to grow roughly 4% and adjusted earnings to increase 4-7% year over year to $8.50-$8.70. This projection is above previously mentioned $8.45-$8.65. Going forward, the company intends on starting multi-year initiatives aimed at margin expansion. However, it predicts the Industrial segment's organic sales to decline due to weak automotive system sales and flat hydraulic tools business. Also, tariffs, foreign currency woes and commodity inflation are predicted to adversely impact this year's result by $340 million.”

A number of other research analysts also recently issued reports on the company. Morgan Stanley upped their price target on Stanley Black & Decker from $149.00 to $162.00 and gave the company an “overweight” rating in a report on Thursday, April 25th. Wells Fargo & Co upped their price target on Stanley Black & Decker from $148.00 to $160.00 and gave the company an “outperform” rating in a report on Monday, April 29th. Barclays upped their price target on Stanley Black & Decker from $145.00 to $158.00 and gave the company an “overweight” rating in a report on Thursday, April 25th. Buckingham Research upped their price target on Stanley Black & Decker from $122.00 to $148.00 and gave the company a “neutral” rating in a report on Wednesday, April 17th. Finally, Longbow Research raised Stanley Black & Decker from a “neutral” rating to a “buy” rating and set a $160.00 price target on the stock in a report on Friday, March 22nd. Three research analysts have rated the stock with a hold rating and sixteen have issued a buy rating to the company’s stock. Stanley Black & Decker currently has a consensus rating of “Buy” and an average target price of $158.44.

Stanley Black & Decker stock traded down $2.29 during mid-day trading on Friday, hitting $140.62. The company had a trading volume of 212,628 shares, compared to its average volume of 966,766. The company has a current ratio of 0.91, a quick ratio of 0.43 and a debt-to-equity ratio of 0.54. Stanley Black & Decker has a 12 month low of $106.41 and a 12 month high of $155.22. The company has a market capitalization of $21.40 billion, a price-to-earnings ratio of 17.25, a price-to-earnings-growth ratio of 1.74 and a beta of 1.31.

Stanley Black & Decker (NYSE:SWK) last released its earnings results on Wednesday, April 24th. The industrial products company reported $1.42 EPS for the quarter, topping the Thomson Reuters’ consensus estimate of $1.10 by $0.32. The business had revenue of $3.33 billion for the quarter, compared to the consensus estimate of $3.30 billion. Stanley Black & Decker had a return on equity of 17.01% and a net margin of 4.57%. The company’s revenue for the quarter was up 3.9% compared to the same quarter last year. During the same period in the previous year, the company posted $1.39 earnings per share. On average, equities research analysts predict that Stanley Black & Decker will post 8.63 EPS for the current year.

In related news, CEO James M. Loree sold 56,699 shares of the company’s stock in a transaction on Friday, April 26th. The stock was sold at an average price of $145.14, for a total transaction of $8,229,292.86. Following the completion of the sale, the chief executive officer now owns 88,854 shares in the company, valued at $12,896,269.56. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, insider Robert H. Raff, Jr. sold 6,179 shares of the company’s stock in a transaction on Friday, May 3rd. The shares were sold at an average price of $151.66, for a total value of $937,107.14. Following the sale, the insider now owns 14,116 shares of the company’s stock, valued at approximately $2,140,832.56. The disclosure for this sale can be found here. In the last quarter, insiders have sold 116,816 shares of company stock valued at $17,122,550. 1.03% of the stock is owned by company insiders.

A number of institutional investors and hedge funds have recently modified their holdings of SWK. Marshall Wace North America L.P. purchased a new stake in shares of Stanley Black & Decker during the first quarter worth about $2,936,000. Clearbridge Investments LLC grew its position in shares of Stanley Black & Decker by 17.5% during the first quarter. Clearbridge Investments LLC now owns 474,092 shares of the industrial products company’s stock worth $64,557,000 after purchasing an additional 70,605 shares in the last quarter. Cerebellum GP LLC purchased a new stake in shares of Stanley Black & Decker during the first quarter worth about $94,000. Advisory Services Network LLC grew its position in shares of Stanley Black & Decker by 7.9% during the first quarter. Advisory Services Network LLC now owns 3,331 shares of the industrial products company’s stock worth $453,000 after purchasing an additional 245 shares in the last quarter. Finally, EP Wealth Advisors LLC purchased a new stake in shares of Stanley Black & Decker during the first quarter worth about $14,738,000. Institutional investors and hedge funds own 86.42% of the company’s stock.

About Stanley Black & Decker

Stanley Black & Decker, Inc engages in tools and storage, industrial, and security businesses worldwide. Its Tools & Storage segment offers power tools and equipment, including professional products, such as professional grade corded and cordless electric power tools and equipment, and pneumatic tools and fasteners; and consumer products comprising corded and cordless electric power tools primarily under the BLACK+DECKER brand, as well as lawn and garden products and related accessories, and home products.

Further Reading: What are trading strategies for the 52-week high/low?

Get a free copy of the Zacks research report on Stanley Black & Decker (SWK)

For more information about research offerings from Zacks Investment Research, visit Zacks.com

Analyst Recommendations for Stanley Black & Decker (NYSE:SWK)

Receive News & Ratings for Stanley Black & Decker Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Stanley Black & Decker and related companies with MarketBeat.com's FREE daily email newsletter.