Williams-Sonoma’s (WSM) “Neutral” Rating Reiterated at Guggenheim

Guggenheim reiterated their neutral rating on shares of Williams-Sonoma (NYSE:WSM) in a report published on Thursday morning,Benzinga reports.

Several other research firms also recently weighed in on WSM. Wells Fargo & Company boosted their price target on shares of Williams-Sonoma from $190.00 to $240.00 and gave the stock an “equal weight” rating in a research note on Tuesday, August 11th. Jefferies Financial Group set a $275.00 price objective on Williams-Sonoma in a research note on Wednesday. Evercore set a $240.00 price objective on Williams-Sonoma in a report on Tuesday, August 4th. Telsey Advisory Group set a $260.00 target price on Williams-Sonoma and gave the company an “outperform” rating in a research note on Thursday. Finally, KeyCorp reissued an “overweight” rating and issued a $270.00 target price (up from $250.00) on shares of Williams-Sonoma in a research note on Thursday. One investment analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating and nine have assigned a Hold rating to the company. According to MarketBeat.com, Williams-Sonoma presently has a consensus rating of “Moderate Buy” and a consensus target price of $244.44.

Williams-Sonoma Stock Performance

WSM stock opened at $235.07 on Thursday. The company has a market capitalization of $27.68 billion, a PE ratio of 24.06, a price-to-earnings-growth ratio of 2.55 and a beta of 1.50. Williams-Sonoma has a one year low of $165.51 and a one year high of $254.89. The company’s 50 day moving average price is $233.48 and its two-hundred day moving average price is $208.49.

Williams-Sonoma (NYSE:WSM) last announced its quarterly earnings data on Wednesday, August 26th. The specialty retailer reported $2.10 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.08 by $0.02. Williams-Sonoma had a net margin of 14.73% and a return on equity of 53.48%. The company had revenue of $1.96 billion during the quarter, compared to analysts’ expectations of $1.93 billion. During the same quarter in the prior year, the company earned $2.00 EPS. The firm’s revenue was up 6.7% on a year-over-year basis. On average, research analysts predict that Williams-Sonoma will post 9.45 EPS for the current year.

Williams-Sonoma Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, August 21st. Investors of record on Friday, July 17th were paid a $0.76 dividend. This represents a $3.04 annualized dividend and a dividend yield of 1.3%. The ex-dividend date of this dividend was Friday, July 17th. Williams-Sonoma’s payout ratio is presently 31.12%.

Insider Buying and Selling

In other Williams-Sonoma news, EVP Karalyn Yearout sold 522 shares of the stock in a transaction on Friday, August 7th. The shares were sold at an average price of $246.39, for a total transaction of $128,615.58. Following the completion of the sale, the executive vice president owned 20,195 shares of the company’s stock, valued at $4,975,846.05. This represents a 2.52% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders have sold 3,156 shares of company stock worth $738,699. Corporate insiders own 1.10% of the company’s stock.

Hedge Funds Weigh In On Williams-Sonoma

A number of hedge funds have recently modified their holdings of the company. VIRGINIA RETIREMENT SYSTEMS ET Al bought a new position in shares of Williams-Sonoma during the second quarter valued at about $24,406,000. California State Teachers Retirement System boosted its holdings in shares of Williams-Sonoma by 21,796.7% during the second quarter. California State Teachers Retirement System now owns 36,913,716 shares of the specialty retailer’s stock worth $8,604,587,000 after purchasing an additional 36,745,135 shares during the period. Wedmont Private Capital grew its stake in shares of Williams-Sonoma by 3.4% in the second quarter. Wedmont Private Capital now owns 2,937 shares of the specialty retailer’s stock worth $651,000 after purchasing an additional 96 shares during the last quarter. Saudi Central Bank grew its stake in shares of Williams-Sonoma by 89.1% in the second quarter. Saudi Central Bank now owns 8,331 shares of the specialty retailer’s stock worth $1,942,000 after purchasing an additional 3,925 shares during the last quarter. Finally, Compass Financial Management LLC purchased a new position in Williams-Sonoma during the 2nd quarter valued at about $174,000. Hedge funds and other institutional investors own 99.29% of the company’s stock.

More Williams-Sonoma News

Here are the key news stories impacting Williams-Sonoma this week:

• Positive Sentiment: Williams-Sonoma exceeded expectations with adjusted earnings of $2.10 per share versus the $2.08 consensus and revenue of $1.96 billion versus estimates of $1.93 billion. Comparable sales increased 6.2%, reflecting broad-based growth across its brands, including Pottery Barn and West Elm. Williams-Sonoma Fiscal Q2 Earnings Snapshot
• Positive Sentiment: Management raised its full-year revenue and earnings outlook, signaling confidence that market-share gains and improving comparable-sales trends can continue in the second half. Analysts highlighted that the company has moved beyond its most difficult year-over-year margin comparison, while comps are accelerating. Williams-Sonoma’s Most Difficult Margin Comparison Is Behind It
• Positive Sentiment: Several analysts raised their price targets following the results. KeyBanc increased its target to $270, RBC reaffirmed an Outperform rating with a $260 target, and Morgan Stanley lifted its target to $240 while maintaining an Equal Weight rating. Jim Cramer also argued that the post-earnings selloff did not reflect the strength of the report. Analysts Increase Forecasts on Williams-Sonoma
• Neutral Sentiment: Citigroup raised its price target from $248 to $252 but retained a Neutral rating, while Guggenheim also maintained Neutral. This reflects continued confidence in the business but limited conviction that the current valuation offers substantial upside. Analyst Insights on Williams-Sonoma
• Negative Sentiment: Gross margin declined because of tariffs, creating a key risk to earnings if higher costs cannot be offset through pricing, sourcing, or operating efficiencies. The company also remains exposed to a weak housing market and cautious discretionary spending. Williams-Sonoma Grew Comps 6.2% and Raised Guidance
• Negative Sentiment: The muted market reaction suggests investors may have been positioned for an even stronger report, or may be taking profits after a substantial rally. At roughly 24 times earnings and near its 52-week high, WSM’s valuation leaves less room for execution disappointments.

About Williams-Sonoma

Williams‑Sonoma, Inc is a specialty retailer focused on the home and culinary markets, best known for premium cookware, kitchen tools and home furnishings. The company traces its roots to a single cookware store founded by Chuck Williams in 1956 in Sonoma, California, and has evolved into a multi‑brand home furnishings and housewares business. Its merchandise mix spans cookware and kitchen electrics, tabletop and food prep items, furniture, bedding, lighting and decorative accessories designed for both everyday use and higher‑end interiors.

The company operates a portfolio of consumer brands that target distinct segments of the home market.