Masco (NYSE:MAS) Shares Gap Up Following Better-Than-Expected Earnings

Masco Corporation (NYSE:MAS)’s share price gapped up prior to trading on Tuesday after the company announced better than expected quarterly earnings. The stock had previously closed at $71.61, but opened at $77.19. Masco shares last traded at $77.8570, with a volume of 1,234,069 shares.

The construction company reported $0.82 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.78 by $0.04. The business had revenue of $1.79 billion for the quarter, compared to analyst estimates of $1.82 billion. Masco had a return on equity of 856.70% and a net margin of 10.71%.The business’s revenue was down 1.9% compared to the same quarter last year. During the same period in the prior year, the company posted $0.89 EPS. Masco has set its FY 2026 guidance at 4.100-4.300 EPS.

Masco Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Monday, March 9th. Investors of record on Friday, February 20th will be paid a dividend of $0.32 per share. This represents a $1.28 annualized dividend and a yield of 1.7%. This is a positive change from Masco’s previous quarterly dividend of $0.31. The ex-dividend date is Friday, February 20th. Masco’s dividend payout ratio (DPR) is currently 32.21%.

Masco announced that its board has authorized a stock repurchase program on Tuesday, February 10th that allows the company to buyback $2.00 billion in outstanding shares. This buyback authorization allows the construction company to buy up to 13.5% of its stock through open market purchases. Stock buyback programs are typically an indication that the company’s leadership believes its shares are undervalued.

Key Stories Impacting Masco

Here are the key news stories impacting Masco this week:

• Positive Sentiment: EPS beat and investor reaction — Masco posted $0.82 EPS vs. $0.78 consensus, which drove an initial rally and helped the stock reach a 52-week high after the print. Read More.
• Positive Sentiment: Large buyback authorized — the board approved a $2.0 billion share repurchase program (up to ~13.4% of shares), a clear capital-allocation move that supports the share price. Read More.
• Positive Sentiment: Dividend increase — Masco raised its quarterly dividend to $0.32 (3.2% increase), adding to shareholder returns. Read More.
• Positive Sentiment: 2026 EPS outlook and restructuring plan — management outlined a FY2026 EPS target of $4.10–$4.30, and emphasized margin expansion and restructuring initiatives that analysts see as supporting medium‑term earnings. Read More.
• Neutral Sentiment: Full results and materials available — the company released its press release, slide deck and call transcript for Q4, useful for investors digging into segment details and modeling assumptions. Read More.
• Negative Sentiment: Revenue miss and margin pressure — net sales fell ~2% YoY to $1.79B (below estimates) and analysts/coverage note persistent margin headwinds that will require operational fixes. Those top-line and margin concerns are a primary reason for today’s pullback. Read More.
• Negative Sentiment: Mixed analyst positioning — while some firms raised targets and reiterated positives (helping earlier gains), Royal Bank of Canada’s raise to a $74 PT came with a “sector perform” stance (and implies limited near-term upside vs. current levels), signaling cautious sentiment among some analysts. Read More.

Wall Street Analysts Forecast Growth

Several analysts recently issued reports on MAS shares. Robert W. Baird set a $82.00 price target on Masco in a report on Wednesday. Citigroup cut their target price on Masco from $72.00 to $71.00 and set a “neutral” rating on the stock in a research note on Thursday, January 8th. Oppenheimer reissued an “outperform” rating and set a $88.00 price target on shares of Masco in a report on Wednesday. Barclays reaffirmed an “equal weight” rating and issued a $71.00 price objective (down previously from $76.00) on shares of Masco in a report on Monday, December 8th. Finally, Evercore ISI set a $78.00 target price on shares of Masco in a research report on Wednesday. Seven analysts have rated the stock with a Buy rating and twelve have given a Hold rating to the company. According to data from MarketBeat, the stock has a consensus rating of “Hold” and an average price target of $75.69.

Institutional Trading of Masco

A number of hedge funds have recently modified their holdings of the company. Empowered Funds LLC grew its holdings in shares of Masco by 3,071.7% during the 4th quarter. Empowered Funds LLC now owns 208,478 shares of the construction company’s stock worth $13,230,000 after purchasing an additional 201,905 shares in the last quarter. Dorsey & Whitney Trust CO LLC boosted its stake in Masco by 3.5% during the fourth quarter. Dorsey & Whitney Trust CO LLC now owns 4,945 shares of the construction company’s stock worth $314,000 after buying an additional 167 shares in the last quarter. Cerity Partners LLC increased its holdings in Masco by 4.3% in the 4th quarter. Cerity Partners LLC now owns 152,884 shares of the construction company’s stock valued at $9,702,000 after buying an additional 6,314 shares during the period. Franklin Resources Inc. raised its stake in shares of Masco by 10.4% in the 4th quarter. Franklin Resources Inc. now owns 79,623 shares of the construction company’s stock valued at $5,053,000 after buying an additional 7,529 shares in the last quarter. Finally, CenterBook Partners LP raised its stake in shares of Masco by 26.3% in the 4th quarter. CenterBook Partners LP now owns 13,081 shares of the construction company’s stock valued at $830,000 after buying an additional 2,724 shares in the last quarter. Institutional investors own 93.91% of the company’s stock.

Masco Stock Down 1.5%

The company has a current ratio of 1.81, a quick ratio of 1.20 and a debt-to-equity ratio of 38.75. The business’s fifty day moving average price is $66.99 and its 200 day moving average price is $68.08. The company has a market capitalization of $15.91 billion, a P/E ratio of 19.90, a P/E/G ratio of 3.35 and a beta of 1.28.

Masco Company Profile

Masco Corporation is a global leader in the design, manufacture and distribution of branded home improvement and building products. Founded in 1929 and headquartered in Livonia, Michigan, the company has evolved from a small door‐bell manufacturer into a diversified enterprise serving both residential and commercial markets. Over its history, Masco has grown through a combination of organic innovation and strategic acquisitions, building a portfolio of well-recognized brands.

The company’s product offerings are organized into two primary segments.