Armstrong World Industries (NYSE:AWI) Reaches New 12-Month High After Better-Than-Expected Earnings

Armstrong World Industries, Inc. (NYSE:AWI) shares hit a new 52-week high on Wednesday following a better than expected earnings announcement. The company traded as high as $143.07 and last traded at $142.34, with a volume of 65393 shares traded. The stock had previously closed at $140.00.

The construction company reported $1.81 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.75 by $0.06. Armstrong World Industries had a net margin of 17.92% and a return on equity of 41.53%. The company had revenue of $386.60 million for the quarter, compared to analysts’ expectations of $386.69 million. During the same period in the prior year, the business earned $1.60 EPS. The firm’s quarterly revenue was up 11.3% on a year-over-year basis.

Armstrong World Industries Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, November 21st. Stockholders of record on Thursday, November 7th will be given a $0.308 dividend. The ex-dividend date is Thursday, November 7th. This represents a $1.23 dividend on an annualized basis and a dividend yield of 0.87%. This is an increase from Armstrong World Industries’s previous quarterly dividend of $0.28. Armstrong World Industries’s payout ratio is presently 23.12%.

Wall Street Analysts Forecast Growth

A number of equities research analysts recently commented on AWI shares. StockNews.com upgraded Armstrong World Industries from a “hold” rating to a “buy” rating in a research report on Tuesday, August 20th. Truist Financial upped their price objective on shares of Armstrong World Industries from $131.00 to $148.00 and gave the company a “buy” rating in a report on Wednesday, July 31st. Evercore ISI raised their target price on shares of Armstrong World Industries from $119.00 to $127.00 and gave the stock an “in-line” rating in a report on Wednesday, July 31st. UBS Group upped their price target on shares of Armstrong World Industries from $136.00 to $144.00 and gave the company a “neutral” rating in a report on Wednesday. Finally, Jefferies Financial Group boosted their price objective on Armstrong World Industries from $121.00 to $122.00 and gave the company a “hold” rating in a report on Wednesday, October 9th. Three research analysts have rated the stock with a hold rating and three have assigned a buy rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average target price of $134.60.

Hedge Funds Weigh In On Armstrong World Industries

A number of institutional investors have recently added to or reduced their stakes in AWI. Allspring Global Investments Holdings LLC purchased a new stake in shares of Armstrong World Industries during the 1st quarter valued at approximately $27,000. V Square Quantitative Management LLC purchased a new stake in shares of Armstrong World Industries in the 3rd quarter valued at $31,000. UMB Bank n.a. lifted its stake in Armstrong World Industries by 53.7% during the 3rd quarter. UMB Bank n.a. now owns 438 shares of the construction company’s stock worth $58,000 after acquiring an additional 153 shares in the last quarter. First Horizon Advisors Inc. grew its position in Armstrong World Industries by 33.0% in the 2nd quarter. First Horizon Advisors Inc. now owns 504 shares of the construction company’s stock valued at $57,000 after acquiring an additional 125 shares in the last quarter. Finally, Covestor Ltd increased its stake in Armstrong World Industries by 20.4% during the first quarter. Covestor Ltd now owns 596 shares of the construction company’s stock worth $74,000 after purchasing an additional 101 shares during the period. Hedge funds and other institutional investors own 98.93% of the company’s stock.

Armstrong World Industries Price Performance

The company has a quick ratio of 1.19, a current ratio of 1.76 and a debt-to-equity ratio of 0.97. The firm has a market cap of $6.23 billion, a price-to-earnings ratio of 26.57, a PEG ratio of 1.92 and a beta of 1.14. The company’s 50-day moving average price is $130.96 and its 200-day moving average price is $122.28.

About Armstrong World Industries

Armstrong World Industries, Inc, together with its subsidiaries, engages in the design, manufacture, and sale of ceiling and wall solutions in the Americas. It operates through Mineral Fiber and Architectural Specialties segments. The company offers mineral fiber, fiberglass wool, metal, wood, felt, wood fiber, and glass-reinforced-gypsum; ceiling component products, such as ceiling perimeters and trims, as well as grid products that support drywall ceiling systems; ceilings, walls, and facades for use in commercial settings; and manufactures ceiling suspension system (grid) products.