Gabelli Funds LLC Trims Stake in AZZ Inc. $AZZ

Gabelli Funds LLC lowered its position in AZZ Inc. (NYSE:AZZ) by 3.0% in the 3rd quarter, according to its most recent 13F filing with the SEC. The institutional investor owned 216,023 shares of the industrial products company’s stock after selling 6,795 shares during the period. Gabelli Funds LLC owned 0.72% of AZZ worth $23,575,000 as of its most recent SEC filing.

A number of other institutional investors and hedge funds also recently made changes to their positions in the company. SG Capital Management LLC grew its stake in AZZ by 111.3% in the third quarter. SG Capital Management LLC now owns 376,040 shares of the industrial products company’s stock worth $41,037,000 after purchasing an additional 198,036 shares during the period. Pacer Advisors Inc. purchased a new position in AZZ during the third quarter valued at $16,360,000. Copeland Capital Management LLC purchased a new position in AZZ during the third quarter valued at $15,772,000. Skandinaviska Enskilda Banken AB publ bought a new stake in shares of AZZ during the 3rd quarter valued at $14,119,000. Finally, Vanguard Group Inc. grew its position in shares of AZZ by 2.6% in the 3rd quarter. Vanguard Group Inc. now owns 3,277,271 shares of the industrial products company’s stock worth $357,649,000 after buying an additional 83,983 shares during the period. Hedge funds and other institutional investors own 90.93% of the company’s stock.

AZZ Price Performance

AZZ opened at $124.50 on Friday. The firm has a market cap of $3.72 billion, a PE ratio of 11.70 and a beta of 1.11. The stock has a 50-day moving average price of $125.87 and a 200-day moving average price of $113.57. AZZ Inc. has a 1 year low of $70.90 and a 1 year high of $141.18. The company has a debt-to-equity ratio of 0.41, a current ratio of 1.66 and a quick ratio of 1.21.

AZZ (NYSE:AZZ) last announced its quarterly earnings data on Wednesday, January 7th. The industrial products company reported $1.52 EPS for the quarter, beating the consensus estimate of $1.43 by $0.09. The company had revenue of $425.75 million for the quarter, compared to the consensus estimate of $412.97 million. AZZ had a net margin of 19.89% and a return on equity of 14.45%. AZZ’s revenue for the quarter was up 5.5% on a year-over-year basis. During the same period in the prior year, the firm posted $1.39 EPS. AZZ has set its FY 2026 guidance at 5.900-6.200 EPS. Sell-side analysts predict that AZZ Inc. will post 5.13 earnings per share for the current fiscal year.

AZZ announced that its board has approved a stock repurchase plan on Friday, January 30th that allows the company to buyback $100.00 million in outstanding shares. This buyback authorization allows the industrial products company to purchase up to 2.7% of its shares through open market purchases. Shares buyback plans are usually a sign that the company’s board of directors believes its stock is undervalued.

AZZ Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Thursday, February 26th. Stockholders of record on Thursday, February 5th were issued a dividend of $0.20 per share. The ex-dividend date was Thursday, February 5th. This represents a $0.80 dividend on an annualized basis and a dividend yield of 0.6%. AZZ’s dividend payout ratio is presently 7.52%.

Insider Activity at AZZ

In related news, CEO Thomas E. Ferguson sold 25,000 shares of the business’s stock in a transaction that occurred on Tuesday, February 3rd. The shares were sold at an average price of $127.29, for a total value of $3,182,250.00. Following the completion of the transaction, the chief executive officer directly owned 158,182 shares in the company, valued at $20,134,986.78. The trade was a 13.65% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Tara D. Mackey sold 2,923 shares of the company’s stock in a transaction that occurred on Wednesday, February 11th. The shares were sold at an average price of $136.00, for a total value of $397,528.00. Following the completion of the transaction, the insider directly owned 22,373 shares in the company, valued at $3,042,728. This trade represents a 11.56% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 33,281 shares of company stock valued at $4,239,080 in the last three months. 1.77% of the stock is owned by insiders.

Analyst Ratings Changes

Several research analysts recently issued reports on AZZ shares. Wall Street Zen upgraded shares of AZZ from a “hold” rating to a “buy” rating in a research note on Saturday, January 10th. Robert W. Baird set a $125.00 price objective on shares of AZZ in a research note on Friday, January 9th. Evercore reaffirmed an “outperform” rating and set a $137.00 target price on shares of AZZ in a research note on Wednesday. Weiss Ratings reiterated a “buy (b)” rating on shares of AZZ in a report on Monday, December 29th. Finally, Noble Financial reissued an “outperform” rating on shares of AZZ in a research report on Tuesday, February 17th. Four equities research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company’s stock. Based on data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average price target of $127.00.

AZZ Company Profile

AZZ Inc, incorporated in 1956 and headquartered in Fort Worth, Texas, is a leading provider of galvanizing and metal finishing solutions alongside electrical equipment and services. The company supports a diverse range of industries—such as energy, infrastructure, heavy equipment and general industrial markets—by delivering corrosion protection and high-performance electrical solutions designed for demanding environments.

AZZ operates two primary business segments. The Global Coatings & Services segment offers hot-dip galvanizing, metal finishing, painting, powder coating and related value-added services to steel fabricators and original equipment manufacturers.