What Does the Market Think of Williams Companies (WMB) Shares?

Tumbling to a price of $33.83 during today's morning trading session, shares of Williams Companies are now -9.45% below their average target price of $37.36. Does this mean the stock will reverse course? Analysts are giving WMB an average rating of buy and target prices ranging from 30 to 42 dollars per share.

The market seems to share this optimistic view, since Williams Companies has a short interest of only 1.7% (this is the percentage of the share float that is being shorted). Each short position represents an investor's expectation that the price of the stock will decrease in the future.

Another way to get an idea of the market sentiment on a stock is to check its rate of institutional ownership. In the case of Williams Companies, institutional investors own 88.2% of the shares, which indicates they have a very high stake in the company. What does this really tell us?

Institutional investors such as hedge funds, investment firms, and wealth managers devote significant resources to identifying good investments. If they have decided to invest in WMB, it probably means they believe it is a solid investment choice.

To sum up, Williams Companies is probably the subject of exuberant market sentiment because of an analyst consensus of some upside potential, a buy rating, a very low short interest, and a significant number of institutional investors. At Market Inference, we believe that any investment decision should be preceded by an in-depth analysis of the company's fundamental values and a comparison with similar stocks.

Here's a snapshot of some important facts to keep in mind about WMB:

  • The stock has trailing 12 month earnings per share (Eps) of $1.64

  • Williams Companies has a trailing 12 month Price to Earnings (P/E) ratio of 20.6 compared to the S&P 500 average of 15.97

  • The company has a Price to Book (P/B) ratio of 3.7 in contrast to the S&P 500's average ratio of 2.95

  • Williams Companies is a Energy company, and the sector average P/E and P/B ratios are 9.11 and 1.45 respectively

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.