Shares of Woodward, Inc. (NASDAQ: WWD) have garnered a consensus rating of “Moderate Buy” from twelve research firms currently covering the company, according to Marketbeat Ratings. Of these analysts, four have assigned a hold rating, while eight have issued buy ratings. The average target price over the next year is approximately $286.67.
Recent reports from various research firms have provided insights into Woodward’s stock performance. On August 15, Zacks Research downgraded Woodward from a “strong buy” to a “hold” rating. Contrastingly, on October 3, Wolfe Research established a price target of $300.00 and rated the stock as “outperform.” Further affirming investor confidence, Jefferies Financial Group reiterated a “buy” rating and set a target price of $350.00. Additionally, Alembic Global Advisors upgraded Woodward from a “neutral” to an “overweight” rating with a target price of $281.00.
Financial Performance and Earnings Report
Woodward last reported its quarterly earnings on November 24, 2023. The company achieved $2.09 earnings per share, exceeding the consensus estimate of $1.83 by $0.26. The reported revenue for the quarter was $995.26 million, surpassing analysts’ expectations of $943.15 million. This marked a 16.5% increase in revenue compared to the same quarter the previous year. The company also noted a net margin of 11.32% and a return on equity of 16.57%.
Looking ahead, Woodward has set its fiscal year 2026 guidance between $7.50 and $8.00 earnings per share. Analysts predict that the company will report an earnings per share of $6.15 for the current fiscal year.
Dividend Declaration and Stock Buyback Program
In addition to its earnings report, Woodward announced a quarterly dividend of $0.28 per share, payable on December 4, 2023, to investors on record as of November 20, 2023. This reflects an annualized dividend of $1.12 and a dividend yield of 0.4%. The ex-dividend date is also set for November 20, 2023, with a current dividend payout ratio of 15.58%.
Furthermore, on November 20, the board approved a stock repurchase program allowing the company to buy back up to $1.80 billion in shares, equating to approximately 11.6% of its stock. Such buybacks typically indicate that management perceives the stock as undervalued.
Insider Transactions and Institutional Trading
Recent insider transactions have also drawn attention. Thomas G. Cromwell, the Chief Operating Officer, sold 5,000 shares on December 1, 2023, at an average price of $299.39, totaling nearly $1.5 million. Following this transaction, Cromwell’s holdings decreased by 24.83% to 15,135 shares, valued at approximately $4.53 million.
On November 26, Director John D. Cohn sold 3,000 shares at an average price of $296.33, receiving about $889,000. This transaction reduced Cohn’s ownership by 12.21%, leaving him with 21,575 shares valued at around $6.39 million. Over the last 90 days, insiders sold a total of 14,750 shares worth approximately $4.29 million. Currently, company insiders own 0.82% of Woodward’s stock.
In recent months, several hedge funds and institutional investors have adjusted their holdings in Woodward. Notably, Anchor Capital Advisors LLC acquired a new position valued at around $246,000 in the second quarter. UBS Asset Management increased its stake by 0.7%, now owning 165,286 shares valued at about $30.16 million after purchasing an additional 1,146 shares. Advisors Asset Management Inc. also raised its stake by 7.2%, currently holding 16,681 shares worth $4.09 million. Overall, institutional investors own 81.18% of the company’s stock.
Woodward, Inc. specializes in designing, manufacturing, and servicing control solutions for the aerospace and industrial markets globally. The company operates in two segments: Aerospace and Industrial, providing a range of products including fuel pumps, metering units, and thrust reverser actuation systems for turbine engines.
As Woodward continues to navigate the complexities of the market, its recent financial performance and strategic decisions regarding dividends and stock repurchases reflect a proactive approach to enhancing shareholder value.
