Armstrong World Industries (NYSE:AWI) Sees Strong Trading Volume After Better-Than-Expected Earnings

Armstrong World Industries, Inc. (NYSE:AWI) saw unusually-high trading volume on Tuesday following a stronger than expected earnings report. Approximately 228,041 shares were traded during mid-day trading, an increase of 9% from the previous session’s volume of 210,146 shares.The stock last traded at $153.24 and had previously closed at $145.72.

The construction company reported $1.50 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.38 by $0.12. Armstrong World Industries had a net margin of 17.95% and a return on equity of 40.67%. The business had revenue of $367.70 million for the quarter, compared to analyst estimates of $352.09 million. During the same quarter in the previous year, the firm posted $1.22 earnings per share. Armstrong World Industries’s revenue was up 17.7% compared to the same quarter last year.

Armstrong World Industries Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, March 20th. Investors of record on Thursday, March 6th will be paid a dividend of $0.308 per share. The ex-dividend date of this dividend is Thursday, March 6th. This represents a $1.23 annualized dividend and a yield of 0.81%. Armstrong World Industries’s dividend payout ratio is 21.69%.

Wall Street Analysts Forecast Growth

Several analysts have recently weighed in on the company. Loop Capital lifted their price objective on Armstrong World Industries from $135.00 to $145.00 and gave the stock a “hold” rating in a report on Wednesday, October 30th. StockNews.com raised Armstrong World Industries from a “hold” rating to a “buy” rating in a research note on Wednesday, January 22nd. Evercore ISI increased their price objective on Armstrong World Industries from $127.00 to $140.00 and gave the stock an “in-line” rating in a research note on Wednesday, October 30th. Truist Financial lifted their price objective on Armstrong World Industries from $148.00 to $162.00 and gave the company a “buy” rating in a report on Wednesday, October 30th. Finally, UBS Group upped their target price on shares of Armstrong World Industries from $136.00 to $144.00 and gave the stock a “neutral” rating in a report on Wednesday, October 30th. Four research analysts have rated the stock with a hold rating and two have given a buy rating to the company’s stock. According to MarketBeat.com, the stock currently has a consensus rating of “Hold” and an average target price of $142.60.

Institutional Trading of Armstrong World Industries

Hedge funds and other institutional investors have recently made changes to their positions in the business. Madison Investment Advisors LLC acquired a new stake in shares of Armstrong World Industries in the fourth quarter valued at approximately $75,242,000. Norges Bank acquired a new position in shares of Armstrong World Industries during the 4th quarter worth about $71,822,000. Adage Capital Partners GP L.L.C. increased its stake in Armstrong World Industries by 140.4% in the fourth quarter. Adage Capital Partners GP L.L.C. now owns 666,000 shares of the construction company’s stock valued at $94,126,000 after purchasing an additional 389,000 shares in the last quarter. Alyeska Investment Group L.P. raised its stake in Armstrong World Industries by 267.1% during the 4th quarter. Alyeska Investment Group L.P. now owns 532,602 shares of the construction company’s stock worth $75,273,000 after buying an additional 387,537 shares during the period. Finally, Invesco Ltd. lifted its holdings in shares of Armstrong World Industries by 25.4% during the 4th quarter. Invesco Ltd. now owns 507,843 shares of the construction company’s stock valued at $71,773,000 after purchasing an additional 102,895 shares in the last quarter. 98.93% of the stock is currently owned by institutional investors and hedge funds.

Armstrong World Industries Stock Performance

The company has a debt-to-equity ratio of 0.78, a current ratio of 1.64 and a quick ratio of 1.11. The stock’s 50 day simple moving average is $147.46 and its two-hundred day simple moving average is $141.81. The stock has a market cap of $6.60 billion, a P/E ratio of 26.50, a price-to-earnings-growth ratio of 1.60 and a beta of 1.19.

Armstrong World Industries Company Profile

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.