CSW Industrials is not the kind of stock that grabs headlines every day. The company makes HVAC, plumbing, and industrial products that most people never think about.
But while it may seem like a boring business, it is one that continues to deliver solid results.
On May 22, CSW Industrials reported earnings of $2.24 per share for the first quarter. That number was slightly above Wall Street estimates of $2.23. The company also reported revenue of $194 million, which was up 11 percent from the same period last year.
CSW Industrials has become known for its strong profit margins. Its operating margins are close to 30 percent, which is very high for an industrial company.
This is one reason the stock has gained over 22 percent in the past year. Investors have taken notice. For example, Barclays increased its position in the stock by more than 400 percent last quarter.
Insiders Sell Despite Stock Rise
While the business is performing well, some insiders at the company have recently sold shares. In early May, Executive Vice President Don Sullivan sold about $498,000 worth of stock.
Chief Financial Officer James Perry also sold shares earlier this year. In total, insiders have sold over $3 million in shares in the past three months.
Some investors may see this as a warning sign, but insider selling does not always mean something negative. It could simply mean that executives are locking in gains after a strong year.
Analysts Giving Mixed Signals
Wall Street analysts are showing mixed reactions to the stock. Wells Fargo lowered its price target from $350 to $295. Citigroup also reduced its target slightly. At the same time, Truist Securities maintained a hold rating with a price target of $362.
Despite these mixed views, CSW Industrials continues to perform well. The company operates in a space that is not flashy, but very steady. Its products are used by professionals who value reliability, and many of its customers stick with the brand.
In today’s market, where tech stocks often dominate the conversation, CSW Industrials is showing that consistent performance still matters.
It may not be the most exciting stock, but it is one that continues to quietly deliver.
