Fintel reports that on August 24, 2023, B of A Securities upgraded their outlook for Williams-Sonoma (NYSE:WSM) from Underperform to Neutral.

Analyst Price Forecast Suggests 10.30% Downside

As of August 2, 2023, the average one-year price target for Williams-Sonoma is 127.39. The forecasts range from a low of 95.95 to a high of $194.25. The average price target represents a decrease of 10.30% from its latest reported closing price of 142.02.

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The projected annual revenue for Williams-Sonoma is 8,690MM, an increase of 5.16%. The projected annual non-GAAP EPS is 14.62.

Williams-Sonoma Declares $0.90 Dividend

On June 15, 2023 the company declared a regular quarterly dividend of $0.90 per share ($3.60 annualized). Shareholders of record as of July 21, 2023 will receive the payment on August 25, 2023. Previously, the company paid $0.90 per share.

At the current share price of $142.02 / share, the stock’s dividend yield is 2.53%.

Looking back five years and taking a sample every week, the average dividend yield has been 2.46%, the lowest has been 1.26%, and the highest has been 5.40%. The standard deviation of yields is 0.69 (n=236).

The current dividend yield is 0.11 standard deviations above the historical average.

Additionally, the company’s dividend payout ratio is 0.24. The payout ratio tells us how much of a company’s income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company’s income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend – not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.

The company’s 3-Year dividend growth rate is 0.88%, demonstrating that it has increased its dividend over time.

What is the Fund Sentiment?

There are 1153 funds or institutions reporting positions in Williams-Sonoma. This is a decrease of 72 owner(s) or 5.88% in the last quarter. Average portfolio weight of all funds dedicated to WSM is 0.28%, a decrease of 6.51%. Total shares owned by institutions decreased in the last three months by 3.56% to 74,760K shares. The put/call ratio of WSM is 1.28, indicating a bearish outlook.

What are Other Shareholders Doing?

Aristotle Capital Management holds 4,617K shares representing 7.19% ownership of the company. In it’s prior filing, the firm reported owning 4,631K shares, representing a decrease of 0.29%. The firm decreased its portfolio allocation in WSM by 0.60% over the last quarter.

Blackhill Capital holds 3,947K shares representing 6.15% ownership of the company. In it’s prior filing, the firm reported owning 3,947K shares, representing a decrease of 0.02%. The firm decreased its portfolio allocation in WSM by 1.13% over the last quarter.

Capital Research Global Investors holds 3,334K shares representing 5.19% ownership of the company. In it’s prior filing, the firm reported owning 3,332K shares, representing an increase of 0.06%. The firm decreased its portfolio allocation in WSM by 3.36% over the last quarter.

VTSMX – Vanguard Total Stock Market Index Fund Investor Shares holds 2,063K shares representing 3.21% ownership of the company. In it’s prior filing, the firm reported owning 2,020K shares, representing an increase of 2.05%. The firm decreased its portfolio allocation in WSM by 0.20% over the last quarter.

IJH – iShares Core S&P Mid-Cap ETF holds 1,992K shares representing 3.10% ownership of the company. In it’s prior filing, the firm reported owning 2,054K shares, representing a decrease of 3.10%. The firm decreased its portfolio allocation in WSM by 4.43% over the last quarter.

Williams-Sonoma Background Information
(This description is provided by the company.)

Williams-Sonoma, Inc. is the world’s largest digital-first, design-led and sustainable home retailer. The company’s products, representing distinct merchandise strategies – Williams Sonoma, Pottery Barn, Pottery Barn Kids, Pottery Barn Teen, West Elm, Williams Sonoma Home, Rejuvenation, and Mark and Graham – are marketed through e-commerce websites, direct-mail catalogs and retail stores. These brands are also part of The Key Rewards, its free-to-join loyalty program that offers members exclusive benefits across the Williams-Sonoma family of brands. Williams-Sonoma operates in the U.S., Puerto Rico, Canada, Australia and the United Kingdom, offers international shipping to customers worldwide, and has unaffiliated franchisees that operate stores in the Middle East, the Philippines, Mexico, South Korea and India, as well as e-commerce websites in certain locations. The company is also proud to lead the industry with its Environmental, Social and Governance (‘ESG’) efforts. The company is Good By Design – it has deeply engrained sustainability into its business. From its factories to your home, Williams-Sonoma is united in a shared purpose to care for its people and its planet.

This article originally appeared on Fintel

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