WD-40 (NASDAQ:WDFC) Shares Climb 8.5% – Here’s Why

WD-40 Company (NASDAQ:WDFC) rose 8.5% during mid-day trading on Thursday. The stock traded as high as $209.47 and last traded at $208.97. 161,268 shares changed hands during mid-day trading, a decline of 1% from the average session volume of 162,849 shares. The stock had previously closed at $192.56.

Key Headlines Impacting WD-40

Here are the key news stories impacting WD-40 this week:

• Positive Sentiment: Strong revenue performance: Fiscal fourth-quarter revenue rose 8.1% year over year to $176.8 million, exceeding analyst expectations of approximately $172.1 million. Full-year net sales increased 11% to $688 million, indicating continued demand for WD-40’s products. Earnings Flash
• Positive Sentiment: Fiscal 2027 outlook broadly supports expectations: Management guided for EPS of $6.40 to $6.70 and revenue of $715 million to $735 million. The midpoint of both ranges is close to consensus estimates, reducing concerns about a sharp slowdown. Fiscal 2027 Guidance
• Positive Sentiment: Potential margin recovery and shareholder returns: Management expects profitability to improve, while accelerated share repurchases and the transition of Japan to a direct-market model could support future earnings and capital returns. WD-40 Could Reward Patient Investors
• Neutral Sentiment: Valuation is under scrutiny: Following an approximately 8% recent rise, commentary questioned whether WDFC has moved above fair value, which could limit near-term upside even if operating results improve. Fair Value Analysis
• Negative Sentiment: Quarterly profit missed expectations: EPS was $1.06 versus the $1.13 consensus and fell from $1.56 a year earlier, reflecting near-term margin pressure. Q4 Earnings Miss

Wall Street Analyst Weigh In

WDFC has been the topic of several recent research reports. Weiss Ratings cut WD-40 from a “hold (c+)” rating to a “hold (c)” rating in a report on Friday, September 18th. Jefferies Financial Group restated a “hold” rating on shares of WD-40 in a report on Friday, July 10th. Zacks Research cut shares of WD-40 from a “strong-buy” rating to a “hold” rating in a research report on Friday, September 11th. Finally, DA Davidson increased their target price on shares of WD-40 from $270.00 to $305.00 and gave the stock a “buy” rating in a research note on Friday, July 10th. One analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating and three have assigned a Hold rating to the company’s stock. According to MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average price target of $305.00.

WD-40 Price Performance

The company’s 50-day moving average price is $204.98 and its 200-day moving average price is $216.84. The company has a quick ratio of 1.95, a current ratio of 2.57 and a debt-to-equity ratio of 0.31. The firm has a market cap of $2.85 billion, a price-to-earnings ratio of 34.99 and a beta of 0.27.

WD-40 (NASDAQ:WDFC) last announced its quarterly earnings data on Wednesday, October 21st. The specialty chemicals company reported $1.06 earnings per share for the quarter, missing analysts’ consensus estimates of $1.13 by ($0.07). The business had revenue of $176.78 million during the quarter, compared to analyst estimates of $172.07 million. WD-40 had a net margin of 11.97% and a return on equity of 30.84%. The company’s revenue for the quarter was up 8.1% on a year-over-year basis. During the same quarter last year, the firm posted $1.56 EPS. On average, equities research analysts forecast that WD-40 Company will post 6.59 EPS for the current year.

WD-40 Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, October 30th. Stockholders of record on Monday, October 19th will be given a dividend of $1.02 per share. The ex-dividend date of this dividend is Monday, October 19th. This represents a $4.08 dividend on an annualized basis and a dividend yield of 1.9%. WD-40’s dividend payout ratio is currently 62.01%.

Insider Activity

In other news, insider Patricia Olsem sold 200 shares of the stock in a transaction on Thursday, August 13th. The stock was sold at an average price of $234.72, for a total value of $46,944.00. Following the sale, the insider directly owned 4,574 shares in the company, valued at approximately $1,073,609.28. This trade represents a 4.19% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Insiders own 0.78% of the company’s stock.

Institutional Investors Weigh In On WD-40

A number of hedge funds have recently bought and sold shares of WDFC. VIRGINIA RETIREMENT SYSTEMS ET Al acquired a new position in WD-40 during the 2nd quarter worth approximately $1,814,000. BlackRock Inc. purchased a new stake in shares of WD-40 in the 2nd quarter valued at approximately $505,734,000. Jupiter Topco LLC acquired a new stake in shares of WD-40 in the 2nd quarter valued at $1,503,000. One Wealth Advisors LLC acquired a new stake in shares of WD-40 in the 2nd quarter valued at $1,705,000. Finally, Man Group plc purchased a new stake in shares of WD-40 during the 2nd quarter worth $2,791,000. Institutional investors and hedge funds own 91.52% of the company’s stock.

WD-40 Company Profile

WD-40 Company develops and markets maintenance, cleaning and homecare products for consumers, professional tradespeople and industrial users. Its best-known product is WD-40 Multi-Use Product, a spray designed to displace moisture, protect metal, loosen rusted parts and lubricate equipment. The company also offers WD-40 Specialist products for specific maintenance applications and the 3-IN-ONE line of lubricants.

The company’s homecare and cleaning portfolio has included brands such as X-14, 2000 Flushes and Carpet Fresh.