Keefe, Bruyette & Woods Lowers Price Target for Willis Towers Watson
Investment firm Keefe, Bruyette & Woods has reduced its price target for Willis Towers Watson Public (NASDAQ: WTW) from $382.00 to $373.00, according to a research report released on October 31, 2023. Despite this cut, the firm continues to endorse an “outperform” rating for the stock, indicating a positive outlook compared to its peers.
Several other financial institutions have recently provided their assessments of Willis Towers Watson. Raymond James Financial reaffirmed a “strong-buy” rating, increasing its price target to $400.00, up from $380.00 in a report issued on September 22, 2023. Meanwhile, Cantor Fitzgerald initiated coverage with a “neutral” rating and a price target of $355.00 on August 13, 2023. Likewise, Piper Sandler adjusted its price objective for the company from $387.00 to $356.00, maintaining an “overweight” rating.
The consensus among analysts suggests a “Moderate Buy” rating for Willis Towers Watson, with an average price target of $366.92. Specifically, one analyst has classified the stock as a “strong buy,” while seven others have rated it as a “buy.” Additionally, five analysts have issued “hold” ratings, and one has recommended a “sell.”
Willis Towers Watson’s financial performance remains robust. The company reported its quarterly earnings on October 30, 2023, revealing earnings per share (EPS) of $3.07, surpassing the consensus estimate of $3.05 by $0.02. The firm generated revenue of $2.29 billion, slightly exceeding analyst expectations of $2.28 billion. The company also recorded a net margin of 1.40% and a return on equity of 21.60%.
In comparison to the same quarter in the previous year, earnings were up from $2.93 per share. Analysts project that Willis Towers Watson will achieve an EPS of 17.32 for the current fiscal year.
Share Buyback Program and Dividend Announcement
On September 18, 2023, the company’s board approved a significant share buyback program, allowing for the repurchase of up to $1.50 billion in outstanding shares. This buyback authorization permits the company to acquire up to 4.6% of its stock through open market transactions, which typically indicates that the board believes the shares are undervalued.
Willis Towers Watson also declared a quarterly dividend of $0.92 per share, which was paid out on October 15, 2023. Shareholders of record as of September 30, 2023, received this payment, reflecting an annualized dividend of $3.68 and a yield of 1.1%. The company’s dividend payout ratio stands at 17.52%.
Institutional Investments in Willis Towers Watson
Recent movements among institutional investors indicate a growing interest in Willis Towers Watson. Alpine Bank Wealth Management acquired a new stake valued at $25,000 in the third quarter, while Wayfinding Financial LLC purchased a similar amount in the first quarter. Notably, SOA Wealth Advisors LLC increased its holdings by an impressive 8,200% in the third quarter, now owning a total of 83 shares valued at $29,000.
Additionally, Cornerstone Planning Group LLC raised its position by 750% during the first quarter, now holding 85 shares worth $28,000. In total, institutional investors and hedge funds control approximately 93.09% of Willis Towers Watson’s stock.
With its diverse offerings in advisory, broking, and solutions, Willis Towers Watson continues to demonstrate resilience in a competitive market. The company operates through two segments: Health, Wealth & Career, and Risk & Broking, providing a range of services including consulting, plan management, and actuarial support.
As analysts and investors keep a close eye on developments, Willis Towers Watson’s strategic moves signal a commitment to enhancing shareholder value, further solidifying its position in the global marketplace.
