NEW YORK (TheStreet) -- Shares of Armstrong World Industries (AWI) - Get Armstrong World Industries, Inc. Report closed down by 3.13% to $37.74 on heavy trading volume on Wednesday, as Barclays downgraded the stock to "underweight" from equal weight" this morning. The firm also lowered its price target to $45 from $53.
The Lancaster, PA-based company is a producer of flooring products and ceiling systems for use in the construction and renovation of residential, commercial and institutional buildings.
"Slower global growth, a strengthening dollar, and a particularly fractious presidential election process bode ill for commercial construction," Barclays said in an analyst note.
An acceleration in first-time homebuyers is being counterbalanced by large numbers of former homeowners moving into rentals, the firm noted.
Additionally, a monthly survey of builder sentiment yesterday found that confidence among homebuilders stalled, while confidence among investors of homebuilding stocks fell more distinctly since the beginning of the year, CNBC.com reported.
"The XHB homebuilders ETF index dropped 9 percent from December 31, 2015 to January 8, 2016, the largest one-week decline since 2011. Such pessimism over homebuilders surprised us," Goldman Sachs wrote in a recent report cited by CNBC.com.
About 1.12 million of the company's shares were traded today, well above its average of 472,996 shares per day.
Separately, TheStreet Ratings Team has a "hold" rating with a score of C+ on the stock.
The primary factors that have impacted the rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks.
The company's strengths can be seen in multiple areas, such as its increase in net income and largely solid financial position with reasonable debt levels by most measures.
However, as a counter to these strengths, the team also finds weaknesses including a generally disappointing performance in the stock itself, disappointing return on equity and weak operating cash flow.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: AWI