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

Armstrong World Industries, Inc. (NYSE:AWI) saw unusually-high trading volume on Tuesday following a better than expected earnings announcement. Approximately 228,041 shares traded hands 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 return on equity of 40.67% and a net margin of 17.95%. The company had revenue of $367.70 million for the quarter, compared to analysts’ expectations of $352.09 million. During the same quarter in the prior year, the business posted $1.22 EPS. The business’s revenue was up 17.7% compared to the same quarter last year.

Armstrong World Industries Dividend Announcement

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

Analyst Upgrades and Downgrades

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

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the company. Tealwood Asset Management Inc. increased its stake in shares of Armstrong World Industries by 0.8% in the fourth quarter. Tealwood Asset Management Inc. now owns 9,287 shares of the construction company’s stock valued at $1,313,000 after buying an additional 71 shares during the period. OneDigital Investment Advisors LLC raised its stake in shares of Armstrong World Industries by 4.3% during the third quarter. OneDigital Investment Advisors LLC now owns 1,864 shares of the construction company’s stock valued at $245,000 after acquiring an additional 76 shares during the last quarter. US Bancorp DE grew its stake in shares of Armstrong World Industries by 13.9% in the third quarter. US Bancorp DE now owns 672 shares of the construction company’s stock worth $88,000 after purchasing an additional 82 shares during the last quarter. Arizona State Retirement System raised its position in Armstrong World Industries by 0.7% during the 4th quarter. Arizona State Retirement System now owns 12,683 shares of the construction company’s stock worth $1,792,000 after purchasing an additional 82 shares during the last quarter. Finally, Tidal Investments LLC lifted its holdings in Armstrong World Industries by 1.8% during the 4th quarter. Tidal Investments LLC now owns 5,234 shares of the construction company’s stock worth $740,000 after buying an additional 93 shares during the period. 98.93% of the stock is owned by institutional investors.

Armstrong World Industries Price Performance

The company has a current ratio of 1.64, a quick ratio of 1.11 and a debt-to-equity ratio of 0.78. 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. The business has a 50-day simple moving average of $147.46 and a 200 day simple moving average of $141.81.

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.