Armstrong World Industries (NYSE:AWI) Stock Price Breaks Above 50-Day Moving Average – What’s Next?

Armstrong World Industries, Inc. (NYSE:AWI) crossed above its fifty day moving average during trading on Friday. The stock has a fifty day moving average of $166.29 and traded as high as $167.67. Armstrong World Industries shares last traded at $166.42, with a volume of 616,080 shares traded.

Wall Street Analysts Forecast Growth

AWI has been the topic of several research reports. Weiss Ratings upgraded Armstrong World Industries from a “hold (c+)” rating to a “buy (b-)” rating in a research note on Friday, October 9th. UBS Group reduced their price target on shares of Armstrong World Industries from $203.00 to $190.00 and set a “neutral” rating for the company in a research report on Wednesday. Jefferies Financial Group reiterated a “hold” rating and issued a $190.00 price objective on shares of Armstrong World Industries in a report on Wednesday, July 29th. Truist Financial cut their price objective on Armstrong World Industries from $230.00 to $210.00 and set a “buy” rating for the company in a research report on Wednesday. Finally, DA Davidson set a $200.00 price target on Armstrong World Industries in a report on Wednesday. Seven analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $203.12.

Armstrong World Industries Stock Performance

The stock has a market cap of $6.96 billion, a price-to-earnings ratio of 22.22, a price-to-earnings-growth ratio of 1.65 and a beta of 1.16. The company has a current ratio of 1.45, a quick ratio of 1.06 and a debt-to-equity ratio of 0.55. The stock’s 50-day simple moving average is $166.29 and its 200-day simple moving average is $169.85.

Armstrong World Industries (NYSE:AWI) last issued its quarterly earnings results on Tuesday, October 27th. The construction company reported $2.26 earnings per share (EPS) for the quarter, missing the consensus estimate of $2.39 by ($0.13). The business had revenue of $475.80 million during the quarter, compared to analyst estimates of $472.62 million. Armstrong World Industries had a net margin of 18.38% and a return on equity of 38.06%. Armstrong World Industries’s quarterly revenue was up 11.9% compared to the same quarter last year. During the same period last year, the firm posted $2.05 earnings per share. Analysts forecast that Armstrong World Industries, Inc. will post 8.32 earnings per share for the current fiscal year.

Armstrong World Industries Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, November 19th. Investors of record on Thursday, November 5th will be issued a dividend of $0.3730 per share. The ex-dividend date is Thursday, November 5th. This represents a $1.49 dividend on an annualized basis and a yield of 0.9%. This is an increase from Armstrong World Industries’s previous quarterly dividend of $0.3390. Armstrong World Industries’s dividend payout ratio (DPR) is currently 18.16%.

Armstrong World Industries announced that its Board of Directors has approved a stock buyback program on Tuesday, July 21st that authorizes the company to repurchase $800 million in shares. This repurchase authorization authorizes the construction company to purchase up to 12.3% of its shares through open market purchases. Stock repurchase programs are usually an indication that the company’s board of directors believes its stock is undervalued.

Hedge Funds Weigh In On Armstrong World Industries

A number of large investors have recently made changes to their positions in the company. BlackRock Inc. purchased a new position in shares of Armstrong World Industries in the 2nd quarter valued at approximately $827,239,000. Bank of America Corp DE acquired a new position in shares of Armstrong World Industries during the second quarter valued at approximately $74,556,000. Bank of New York Mellon Corp acquired a new stake in shares of Armstrong World Industries during the second quarter worth approximately $43,412,000. Deutsche Bank AG acquired a new position in shares of Armstrong World Industries during the 2nd quarter worth about $35,298,000. Finally, Rice Hall James & Associates LLC bought a new stake in Armstrong World Industries in the second quarter valued at $28,418,000. 98.93% of the stock is owned by hedge funds and other institutional investors.

About Armstrong World Industries

Armstrong World Industries, Inc is a building products company that designs and manufactures ceiling, wall and other architectural solutions. Its products are used in commercial, institutional and residential spaces to support acoustical performance, interior design, comfort and functionality.

The company’s offerings include mineral fiber, fiberglass, metal and wood ceilings; suspension systems; acoustical clouds and canopies; wall systems; partitions; and specialty architectural products.