Shares of WillScot Holdings Corporation (NASDAQ: WSC) have received a consensus recommendation of “Hold” from ten brokerages currently covering the company, as reported by Marketbeat Ratings. The analysis reflects varying opinions, with one analyst recommending a sell, five advising a hold, and four suggesting a buy. The average 12-month price target among these analysts stands at $30.89.
Several equity research firms have recently adjusted their price targets on WillScot. On September 29, 2023, Jefferies Financial Group cut its target price from $32.00 to $23.00 while maintaining a hold rating. Similarly, Barclays lowered its target from $34.00 to $22.00 and assigned an equal weight rating on September 24. On October 20, Robert W. Baird decreased its target from $29.00 to $25.00 with a neutral rating.
Conversely, Citigroup initiated coverage on WillScot on the same day, issuing a buy rating and setting a price objective of $28.00. Additionally, Weiss Ratings reaffirmed a sell rating on October 8, marking a significant divergence in analyst opinions.
Recent Earnings and Dividend Announcement
WillScot reported its latest earnings on July 31, 2023, revealing an earnings per share (EPS) of $0.27 for the quarter. This figure fell short of analysts’ expectations of $0.36 by $0.09. The company generated revenue of $589.08 million, slightly surpassing the consensus estimate of $587.07 million. Year-over-year, the revenue decreased by 2.6%, while the return on equity was reported at 24.83% and the net margin at 4.66%.
In addition to the earnings report, WillScot announced a quarterly dividend of $0.07 per share, which was paid on September 17, 2023. Shareholders who were on record as of September 3 received this dividend. The annualized dividend now stands at $0.28, reflecting a yield of 1.2%. The company’s dividend payout ratio is reported at 46.67%.
Insider Transactions and Institutional Involvement
Recent insider activity includes a sale by Hezron T. Lopez, Executive Vice President, who disposed of 22,000 shares on August 19, 2023, at an average price of $24.63, totaling approximately $541,860. Following this transaction, Lopez retained 54,038 shares valued at around $1,330,955.94, representing a 28.93% reduction in his stake.
Conversely, Bradley Lee Soultz, the company’s CEO, purchased 2,000 shares on August 5 at an average cost of $24.85, amounting to $49,700. As a result, Soultz now holds 418,376 shares, worth approximately $10,396,643.60, reflecting a 0.48% increase in his position. Company insiders currently own 3.10% of WillScot’s stock.
A number of institutional investors have also made significant moves regarding their stakes in WillScot. Baillie Gifford & Co. acquired a new position valued at around $145.39 million during the first quarter. Meanwhile, Norges Bank added a new stake valued at approximately $125.13 million in the second quarter.
Additionally, Vanguard Group Inc. increased its holdings by 11.7% in the first quarter, owning 18,338,511 shares valued at $509.81 million after acquiring an additional 1,924,653 shares. HG Vora Capital Management LLC and River Road Asset Management LLC also made strategic investments, further solidifying the institutional ownership of WillScot at 95.81%.
WillScot Holdings Corporation specializes in providing workspace and portable storage solutions across the United States, Canada, and Mexico. The company operates through two primary segments: Modular Solutions and Storage Solutions, which include a diverse range of products such as modular offices, classrooms, and portable storage containers. As the company navigates these challenging market conditions, its strategic decisions and the sentiments of analysts will likely play a crucial role in shaping its future performance.
