Universal Forest Products Inc. (UFPI) Downgraded by Zacks Investment Research to Hold
Universal Forest Products Inc. (NASDAQ:UFPI) was downgraded by Zacks Investment Research from a “strong-buy” rating to a “hold” rating in a note issued to investors on Wednesday.
According to Zacks, “Universal Forest's long-term prospects appear bright, given the solid organic and inorganic expansion efforts. The company believes that acquisition of Idaho Western and certain assets of Robbins Manufacturing Co. will boost its revenue by $100 million annually. Also, the recently completed acquisition of idX Corp will add new product portfolio and customer base to the company's existing businesses. In addition, the company has certain long-term targets, including sales growth of roughly 4-6% above positive GDP growth. New product sales are anticipated to constitute at least 10% of total sales. Despite these positives, the company is exposed to near-term headwinds including adverse foreign currency movements, geopolitical issues, higher costs & expenses and stiff competition.”
Separately, DA Davidson upgraded Universal Forest Products from an “underperform” rating to a “neutral” rating in a research report on Friday, July 22nd.
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Universal Forest Products (NASDAQ:UFPI) traded up 0.12% during trading on Wednesday, hitting $100.55. The stock had a trading volume of 58,698 shares. Universal Forest Products has a one year low of $57.11 and a one year high of $110.97. The firm has a market cap of $2.04 billion, a price-to-earnings ratio of 21.04 and a beta of 1.66. The stock’s 50-day moving average is $105.97 and its 200 day moving average is $92.12.
Universal Forest Products (NASDAQ:UFPI) last posted its earnings results on Wednesday, July 20th. The company reported $1.64 EPS for the quarter, topping the Zacks’ consensus estimate of $1.48 by $0.16. The company had revenue of $872.10 million for the quarter, compared to the consensus estimate of $903.33 million. Universal Forest Products had a return on equity of 12.38% and a net margin of 3.27%. Universal Forest Products’s quarterly revenue was up 4.0% compared to the same quarter last year. During the same period in the previous year, the business earned $1.28 earnings per share. Equities analysts anticipate that Universal Forest Products will post $4.84 earnings per share for the current year.
In other news, CEO Matthew J. Missad sold 400 shares of the business’s stock in a transaction on Friday, September 9th. The stock was sold at an average price of $102.75, for a total value of $41,100.00. Following the completion of the transaction, the chief executive officer now directly owns 55,559 shares of the company’s stock, valued at $5,708,687.25. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, VP Charles Scott Greene sold 4,639 shares of the business’s stock in a transaction on Friday, September 2nd. The stock was sold at an average price of $109.99, for a total value of $510,243.61. Following the completion of the transaction, the vice president now directly owns 9,298 shares of the company’s stock, valued at $1,022,687.02. The disclosure for this sale can be found here. Company insiders own 3.50% of the company’s stock.
Several institutional investors have recently added to or reduced their stakes in UFPI. Fisher Asset Management LLC boosted its position in Universal Forest Products by 16.3% in the second quarter. Fisher Asset Management LLC now owns 218,154 shares of the company’s stock worth $21,846,000 after buying an additional 30,539 shares during the period. Norges Bank bought a new position in Universal Forest Products during the fourth quarter worth $12,001,000. BlackRock Group LTD boosted its position in Universal Forest Products by 9.2% in the first quarter. BlackRock Group LTD now owns 46,290 shares of the company’s stock worth $3,973,000 after buying an additional 3,915 shares during the period. Jacobs Levy Equity Management Inc. bought a new position in Universal Forest Products during the first quarter worth $959,000. Finally, Bayesian Capital Management LP bought a new position in Universal Forest Products during the first quarter worth $220,000. 82.43% of the stock is owned by institutional investors.
About Universal Forest Products
Universal Forest Products, Inc is a holding company. The Company, through its subsidiaries, supplies wood, wood composite and other products to three primary markets: retail, construction and industrial. Its industrial market serves as industrial manufacturers and other customers for packaging, material handling and other applications.
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