Willis Towers Watson Public (NASDAQ: WTW) has seen its price target adjusted upwards from $356.00 to $366.00 by Wells Fargo & Company, as detailed in a research report released on Tuesday. The investment firm maintains an “overweight” rating on the stock, indicating a positive outlook for the company.
Several financial analysts have recently provided their assessments of Willis Towers Watson. On November 28, Wall Street Zen downgraded the stock from a “hold” to a “sell” rating. In contrast, Raymond James Financial affirmed a “strong-buy” rating and increased its price target for the stock from $380.00 to $400.00 in a report dated September 22.
Evercore ISI also revised its target price, lowering it slightly from $387.00 to $383.00, while maintaining an “outperform” rating. Barclays issued a report on January 8, increasing their target from $303.00 to $318.00 but assigned an “underweight” rating. TD Cowen’s analysis on November 10 adjusted their price target down from $408.00 to $391.00, keeping a “buy” rating for the shares.
Overall, the stock has garnered mixed reviews, with two analysts designating it as a “strong buy,” eight assigning a “buy” rating, four giving a “hold” rating, and one issuing a “sell.” According to MarketBeat.com, Willis Towers Watson Public holds an average rating of “moderate buy” with a target price averaging $369.08.
Recent Financial Performance
Willis Towers Watson reported its quarterly earnings on October 30, 2023. The company achieved an earnings per share (EPS) of $3.07, surpassing the consensus estimate of $3.05 by $0.02. The firm recorded a return on equity of 21.46% and a net margin of 21.58%. Revenue for the quarter reached $2.29 billion, exceeding analyst expectations of $2.28 billion. Year-over-year revenue growth was also noted, with figures slightly increasing from the previous year’s $2.93 EPS.
Equities researchers predict that Willis Towers Watson will report an EPS of $17.32 for the current year.
Shareholder Returns and Buyback Program
Recently, Willis Towers Watson declared a quarterly dividend of $0.92 per share, which was paid on January 15, 2024. The dividend translates to an annualized amount of $3.68, reflecting a yield of 1.1%. The ex-dividend date was set for December 31, 2023, and the company has a payout ratio of 17.52%.
In a significant move, the company’s board announced a share buyback program on September 18, authorizing the repurchase of up to $1.50 billion in shares. This program allows the company to buy back approximately 4.6% of its outstanding shares through open market purchases, often a sign that the company’s leadership believes its stock is undervalued.
Institutional Investor Activity
Institutional investors and hedge funds have been active in trading Willis Towers Watson shares. Quadcap Wealth Management LLC increased its holdings by 4.8% during the second quarter, now owning 747 shares valued at approximately $229,000. Wedmont Private Capital raised its stake by 3.8%, owning 919 shares valued at $322,000.
World Investment Advisors also expanded its holdings by 4.7%, now possessing 779 shares worth $269,000. MassMutual Private Wealth & Trust FSB lifted its position by 10.1%, holding 392 shares valued at $120,000. Ethic Inc. increased its stake by 0.3%, owning 14,050 shares valued at $4.85 million. Currently, institutional and hedge fund ownership accounts for 93.09% of the stock.
Willis Towers Watson Public operates as a global advisory, broking, and solutions firm, assisting organizations in managing risk, optimizing benefits, and cultivating talent. The company serves a diverse client base that includes multinational corporations, public sector entities, insurers, and investment managers. Its core functions encompass insurance brokerage, risk management, employee benefits, and retirement consulting.
