Beacon Roofing Supply (NASDAQ:BECN) was downgraded by Zacks Investment Research from a “strong-buy” rating to a “hold” rating in a research note issued to investors on Monday.
According to Zacks, “Beacon Roofing's acquisition of Allied Building Products will catapult it to one of the largest public wholesale building materials distributors in the United States and Canada. The buyout will not only expand product offerings, but also increase geographical reach in both existing and new markets while ensuring significant cost synergies. However, Beacon Roofing has funded the Allied Building Products acquisition by taking up debt. Beacon Roofing is witnessing strong sales growth within the three product lines and across almost all geographies. The momentum is expected to continue in fiscal 2018. Beacon Roofing is also expected to benefit from the rebuilding activity triggered by the two back-to-back hurricanes. The company is also striving to improve margins by managing costs. However, competitive pricing pressure, higher operating costs remain headwinds.”
A number of other research analysts also recently commented on BECN. SunTrust Banks restated a “buy” rating and issued a $55.00 target price on shares of Beacon Roofing Supply in a research note on Monday, October 2nd. Royal Bank of Canada reaffirmed a “buy” rating and issued a $53.00 price target on shares of Beacon Roofing Supply in a research report on Tuesday, October 10th. Robert W. Baird reaffirmed a “buy” rating and issued a $55.00 price target on shares of Beacon Roofing Supply in a research report on Thursday, October 12th. KeyCorp reaffirmed a “buy” rating and issued a $56.00 price target on shares of Beacon Roofing Supply in a research report on Sunday, October 15th. Finally, Wells Fargo & Co began coverage on Beacon Roofing Supply in a research report on Wednesday, October 18th. They issued a “market perform” rating and a $58.00 price target for the company. Six investment analysts have rated the stock with a hold rating and six have given a buy rating to the company. The company currently has a consensus rating of “Buy” and a consensus price target of $58.64.
Beacon Roofing Supply (NASDAQ:BECN) last issued its earnings results on Monday, November 20th. The company reported $0.93 EPS for the quarter, missing analysts’ consensus estimates of $0.94 by ($0.01). Beacon Roofing Supply had a net margin of 2.30% and a return on equity of 9.09%. The firm had revenue of $1.29 billion during the quarter, compared to analysts’ expectations of $1.26 billion. During the same quarter last year, the firm earned $0.88 EPS. The business’s revenue for the quarter was up 9.8% compared to the same quarter last year. equities research analysts forecast that Beacon Roofing Supply will post 3.2 EPS for the current fiscal year.
In related news, CEO Paul Isabella sold 40,000 shares of the business’s stock in a transaction dated Monday, November 27th. The stock was sold at an average price of $60.57, for a total transaction of $2,422,800.00. Following the completion of the transaction, the chief executive officer now owns 172,046 shares of the company’s stock, valued at approximately $10,420,826.22. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, EVP Ross D. Cooper sold 2,000 shares of the business’s stock in a transaction dated Tuesday, November 21st. The stock was sold at an average price of $59.75, for a total value of $119,500.00. Following the transaction, the executive vice president now directly owns 7,056 shares of the company’s stock, valued at approximately $421,596. The disclosure for this sale can be found here. 0.77% of the stock is owned by insiders.
Several hedge funds and other institutional investors have recently bought and sold shares of BECN. Jennison Associates LLC lifted its position in shares of Beacon Roofing Supply by 502.2% during the 3rd quarter. Jennison Associates LLC now owns 1,683,096 shares of the company’s stock worth $86,259,000 after purchasing an additional 1,403,608 shares during the last quarter. TimesSquare Capital Management LLC lifted its position in shares of Beacon Roofing Supply by 108.4% during the 3rd quarter. TimesSquare Capital Management LLC now owns 2,362,015 shares of the company’s stock worth $121,053,000 after purchasing an additional 1,228,625 shares during the last quarter. Bamco Inc. NY acquired a new position in shares of Beacon Roofing Supply during the 3rd quarter worth about $61,982,000. Stephens Investment Management Group LLC acquired a new position in shares of Beacon Roofing Supply during the 3rd quarter worth about $32,333,000. Finally, Davidson Kempner Capital Management LP acquired a new position in shares of Beacon Roofing Supply during the 3rd quarter worth about $25,625,000.
About Beacon Roofing Supply
Beacon Roofing Supply, Inc is engaged in the distribution of residential and non-residential roofing materials in the United States and Canada. It also distributes complementary building products for residential and non-residential building exteriors. Its product portfolio includes residential roofing products, non-residential roofing products and complementary building products.
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