Masco Corporation (MAS) expanding its growth trajectory ahead

Masco Corporation (NYSE: MAS) stock jumped 1.26% on Friday to $52.89 against a previous-day closing price of $52.23. With 2.24 million shares changed hands, the volume of the stock remained heavier than its average volume of 2.18 million shares. During the session, the Building Products & Equipment company that operates in wider Industrials sector, reached to the highest price of $53.10 whereas the lowest price it dropped to was $51.62. The 52-week range on MAS shows that it touched its highest point at $71.06 and its lowest point at $46.27 during that stretch. It currently has a 1-year price target of $63.69. With its current market cap of 12.15 billion, MAS has annualized dividend of $1.12 while the current yield stands at 2.12%. Beta for the stock currently stands at 1.24.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of MAS was down-trending over the past week, with a drop of -4.32%, but this was up by 0.92% over a month. Three-month performance dropped to -5.23% while six-month performance fell -16.89%. The stock lost -11.78% in the past year, while it has lost -24.68% so far this year. A look at the trailing 12-month EPS for MAS yields 2.24 with Next year EPS estimates of 4.40. For the next quarter, that number is 1.09. This implies an EPS growth rate of -46.90% for this year and 4.86% for next year. EPS is expected to grow by 40.92% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 1.90%.

Float and Shares Shorts:

At present, 244.09 million MAS shares are outstanding with a float of 234.47 million shares on hand for trading. On Jul 14, 2022, short shares totaled 6.38 million, which was 2.71% higher than short shares on Jun 14, 2022. In addition to Mr. Keith J. Allman as the firm’s Pres, CEO & Director, Mr. John G. Sznewajs serves as its VP & CFO.

Institutional Ownership:

Through their ownership of 100.19% of MAS’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 56.63% of MAS, in contrast to 37.41% held by mutual funds. Shares owned by individuals account for 2.05%. As the largest shareholder in MAS with 10.44% of the stake, The Vanguard Group, Inc. holds 24,621,058 shares worth 24,621,058. A second-largest stockholder of MAS, Massachusetts Financial Services, holds 21,917,680 shares, controlling over 9.29% of the firm’s shares. BlackRock Fund Advisors is the third largest shareholder in MAS, holding 12,158,825 shares or 5.15% stake. With a 3.40% stake in MAS, the MFS Value Fund is the largest stakeholder. A total of 8,023,642 shares are owned by the mutual fund manager. The Vanguard Total Stock Market Index, which owns about 2.95% of MAS stock, is the second-largest Mutual Fund holder. It holds 6,960,297 shares valued at 352.19 million. Vanguard Mid Cap Index Fund holds 2.30% of the stake in MAS, owning 5,432,265 shares worth 274.87 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for MAS since 22 analysts follow the stock currently. There are 7 analysts who recommend BUY ratings, while 1 suggest SELL ratings. Of the remaining analysts, 9 believe that the stock is worth HOLDING, 5 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With MAS analysts setting a high price target of $76.00 and a low target of $50.00, the average target price over the next 12 months is $63.24. Based on these targets, MAS could surge 43.69% to reach the target high and fall by -5.46% to reach the target low. Reaching the average price target will result in a growth of 19.57% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. MAS will report FY 2022 earnings on 02/09/2023. Analysts have provided yearly estimates in a range of $4.35 being high and $4.07 being low. For MAS, this leads to a yearly average estimate of $4.18. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Masco Corporation surprised analysts by -$0.05 when it reported $1.14 EPS against a consensus estimate of $1.19. The surprise factor in the prior quarter was $0.10. Based on analyst estimates, the high estimate for the next quarter is $1.20 and the low estimate is $0.97. The average estimate for the next quarter is thus $1.07.

Summary of Insider Activity:

Insiders traded MAS stock several times over the past three months with 8 Buys and 2 Sells. In these transactions, 23,440 shares were bought while 17,000 shares were sold. The number of buy transactions has increased to 28 while that of sell transactions has risen to 39 over the past year. The total number of shares bought during that period was 426,047 while 416,150 shares were sold.

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