Investors in Woodward, Inc. (NASDAQ: WWD) have received a consensus target price of $273.22 from twelve research firms currently covering the company, according to Marketbeat Ratings. The stock has garnered a “Moderate Buy” rating, with four analysts recommending a hold and eight suggesting a buy.
Analysts have recently updated their assessments of Woodward. Notably, Zacks Research downgraded the stock from a “strong-buy” to a “hold” rating on August 15, 2024. In contrast, Wolfe Research set a price target of $300.00 while assigning an “outperform” rating on October 3, 2024. Jefferies Financial Group reaffirmed a “buy” rating, establishing a target price of $350.00 in a note published on November 3, 2024. Additionally, Alembic Global Advisors upgraded Woodward from a “neutral” to an “overweight” rating with a price target of $281.00 on August 20, 2024.
Recent Earnings Performance and Dividends
On November 24, 2024, Woodward reported its quarterly earnings, revealing earnings per share of $2.09, surpassing the consensus estimate of $1.83 by $0.26. The company generated revenue of $995.26 million, exceeding analysts’ expectations of $943.15 million. This performance marks a 16.5% increase in revenue year-over-year. For the current fiscal year, analysts forecast an earnings per share of 6.15.
In a move to reward shareholders, Woodward declared a quarterly dividend of $0.28 per share, set to be paid on December 4, 2024. The dividend payout will benefit investors of record as of November 20, 2024. This annualizes to $1.12, reflecting a dividend yield of 0.4% and a dividend payout ratio of 15.58%.
Stock Buyback and Insider Transactions
Woodward’s board has authorized a stock repurchase program that allows the company to buy back up to $1.80 billion in shares, representing up to 11.6% of its stock through open market purchases. Such buyback programs typically indicate that the company’s management believes its shares are undervalued.
In insider transactions, Chief Operating Officer Thomas G. Cromwell sold 5,000 shares on December 1, 2024, at an average price of $299.39, totaling approximately $1,496,950. Post-transaction, Cromwell holds 15,135 shares valued at about $4.53 million, representing a 24.83% reduction in his position. Director John D. Cohn also sold 3,000 shares on November 26, 2024, for a total of $888,990. Following this transaction, Cohn owns 21,575 shares valued at approximately $6.39 million, marking a 12.21% decrease in his ownership.
In the past three months, insiders have sold 14,750 shares worth $4.29 million. Currently, insiders hold 0.82% of the company’s stock.
Several institutional investors have altered their positions in Woodward recently. Anchor Capital Advisors LLC acquired a new position valued at approximately $246,000 during the second quarter. UBS Asset Management increased its stake by 0.7%, owning 165,286 shares valued at $30.16 million after purchasing an additional 1,146 shares. Advisors Asset Management Inc. also increased its stake by 7.2%, now holding 16,681 shares valued at $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 aerospace and industrial markets worldwide. The company operates through two primary segments: Aerospace and Industrial, providing a range of products including fuel pumps, actuators, and flight control systems.
