Core & Main (NYSE:CNM) Shares Gap Up After Better-Than-Expected Earnings

Core & Main, Inc. (NYSE:CNM) shares gapped up prior to trading on Tuesday following a better than expected earnings announcement. The stock had previously closed at $50.52, but opened at $53.05. Core & Main shares last traded at $52.2350, with a volume of 1,049,704 shares changing hands.

The company reported $0.72 EPS for the quarter, meeting the consensus estimate of $0.72. Core & Main had a net margin of 5.60% and a return on equity of 24.63%. The company had revenue of $2.06 billion during the quarter, compared to analysts’ expectations of $2.06 billion. During the same quarter in the previous year, the company posted $0.69 EPS. The business’s revenue for the quarter was up 1.2% compared to the same quarter last year.

Core & Main announced that its board has approved a share repurchase plan on Tuesday, December 9th that authorizes the company to repurchase $500.00 million in shares. This repurchase authorization authorizes the company to buy up to 5% of its stock through open market purchases. Stock repurchase plans are typically a sign that the company’s management believes its stock is undervalued.

Analyst Upgrades and Downgrades

CNM has been the topic of a number of recent analyst reports. Royal Bank Of Canada reduced their target price on Core & Main from $67.00 to $62.00 and set an “outperform” rating on the stock in a report on Wednesday, September 10th. Barclays cut their price target on shares of Core & Main from $65.00 to $63.00 and set an “overweight” rating on the stock in a research report on Monday, December 1st. Citigroup boosted their price objective on shares of Core & Main from $54.00 to $56.00 and gave the company a “neutral” rating in a report on Wednesday. Wells Fargo & Company increased their target price on shares of Core & Main from $55.00 to $57.00 and gave the stock an “overweight” rating in a report on Wednesday. Finally, UBS Group initiated coverage on shares of Core & Main in a report on Monday, September 29th. They issued a “buy” rating and a $65.00 price target for the company. Seven investment analysts have rated the stock with a Buy rating and five have issued a Hold rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average target price of $60.36.

Institutional Investors Weigh In On Core & Main

Several large investors have recently made changes to their positions in CNM. Capital World Investors boosted its stake in Core & Main by 294.9% in the 3rd quarter. Capital World Investors now owns 5,948,134 shares of the company’s stock worth $320,188,000 after purchasing an additional 4,442,047 shares during the period. First Trust Advisors LP lifted its holdings in shares of Core & Main by 10.7% in the third quarter. First Trust Advisors LP now owns 3,835,835 shares of the company’s stock valued at $206,483,000 after purchasing an additional 369,200 shares in the last quarter. Geode Capital Management LLC boosted its position in shares of Core & Main by 0.5% during the second quarter. Geode Capital Management LLC now owns 3,472,477 shares of the company’s stock worth $209,597,000 after buying an additional 18,874 shares during the period. Bessemer Group Inc. boosted its position in shares of Core & Main by 0.4% during the second quarter. Bessemer Group Inc. now owns 3,371,475 shares of the company’s stock worth $203,467,000 after buying an additional 14,244 shares during the period. Finally, Amundi grew its holdings in shares of Core & Main by 2.8% during the second quarter. Amundi now owns 3,357,973 shares of the company’s stock worth $186,955,000 after buying an additional 92,355 shares in the last quarter. Institutional investors own 94.19% of the company’s stock.

Core & Main Stock Performance

The firm has a market cap of $10.89 billion, a price-to-earnings ratio of 24.29, a price-to-earnings-growth ratio of 2.02 and a beta of 0.98. The stock has a 50-day moving average of $50.38 and a 200-day moving average of $56.38. The company has a debt-to-equity ratio of 1.04, a quick ratio of 1.30 and a current ratio of 2.26.

About Core & Main

Core & Main, Inc is a specialty distributor focused on water, wastewater, storm drainage and fire protection products, and related services. The company provides infrastructure solutions to municipalities, private water companies and professional contractors across municipal, non-residential, and residential end markets, nationwide.