Zacks Investment Research Lowers Beacon Roofing Supply Inc. (BECN) to Sell
Beacon Roofing Supply Inc. (NASDAQ:BECN) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a report released on Tuesday.
According to Zacks, “Beacon Roofing’s performance will be hurt by seasonality in business. Falling oil prices could impair roofing manufacturers’ pricing. This will subsequently affect the company’s pricing and affect its margins. Further, Beacon Roofing’s strategy of acquiring its distributors of roofing materials and complementary products has its inherent risks. Moreover, softness in the general market, volatile exchange rates and intense competition remain headwinds for Beacon Roofing in the near future.”
A number of other analysts also recently weighed in on the company. Wedbush reiterated a “neutral” rating and set a $50.00 target price on shares of Beacon Roofing Supply in a research report on Tuesday, September 6th. Robert W. Baird reiterated an “outperform” rating and set a $55.00 target price on shares of Beacon Roofing Supply in a research report on Wednesday, July 6th. Jefferies Group initiated coverage on Beacon Roofing Supply in a research report on Wednesday, July 6th. They set a “hold” rating and a $46.00 target price for the company. Finally, BB&T Corp. upgraded Beacon Roofing Supply from a “hold” rating to a “buy” rating and set a $51.00 target price for the company in a research report on Friday, June 10th. One analyst has rated the stock with a sell rating, four have assigned a hold rating, six have issued a buy rating and one has issued a strong buy rating to the company’s stock. The company has an average rating of “Buy” and a consensus target price of $48.44.
Shares of Beacon Roofing Supply (NASDAQ:BECN) traded up 0.39% during mid-day trading on Tuesday, reaching $41.66. The company had a trading volume of 595,659 shares. The firm’s 50-day moving average price is $44.05 and its 200 day moving average price is $44.01. Beacon Roofing Supply has a 52-week low of $32.24 and a 52-week high of $48.96. The company has a market cap of $2.49 billion, a price-to-earnings ratio of 32.78 and a beta of 1.35.
Beacon Roofing Supply (NASDAQ:BECN) last released its earnings results on Tuesday, August 2nd. The company reported $0.77 earnings per share for the quarter, beating analysts’ consensus estimates of $0.75 by $0.02. The firm earned $1.15 billion during the quarter, compared to the consensus estimate of $1.15 billion. Beacon Roofing Supply had a return on equity of 9.66% and a net margin of 1.96%. The company’s revenue was up 60.5% compared to the same quarter last year. During the same period in the prior year, the company posted $0.56 EPS. Equities analysts expect that Beacon Roofing Supply will post $2.13 EPS for the current year.
In other Beacon Roofing Supply news, CEO Paul Isabella sold 45,000 shares of the company’s stock in a transaction dated Friday, August 26th. The stock was sold at an average price of $46.31, for a total value of $2,083,950.00. Following the completion of the transaction, the chief executive officer now owns 155,414 shares of the company’s stock, valued at approximately $7,197,222.34. The sale was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, Director Carl T. Berquist bought 5,000 shares of the stock in a transaction on Wednesday, September 7th. The stock was purchased at an average cost of $44.81 per share, with a total value of $224,050.00. Following the acquisition, the director now owns 5,000 shares in the company, valued at $224,050. The disclosure for this purchase can be found here. 1.15% of the stock is owned by company insiders.
A number of institutional investors have recently modified their holdings of the company. Advisor Group Inc. purchased a new position in shares of Beacon Roofing Supply during the second quarter worth about $105,000. Springbok Capital Management LLC boosted its stake in shares of Beacon Roofing Supply by 275.5% in the first quarter. Springbok Capital Management LLC now owns 2,700 shares of the company’s stock valued at $111,000 after buying an additional 1,981 shares during the last quarter. Glenmede Trust Co. NA boosted its stake in shares of Beacon Roofing Supply by 2.8% in the second quarter. Glenmede Trust Co. NA now owns 3,151 shares of the company’s stock valued at $143,000 after buying an additional 86 shares during the last quarter. BlackRock Inc. boosted its stake in shares of Beacon Roofing Supply by 116.8% in the first quarter. BlackRock Inc. now owns 3,442 shares of the company’s stock valued at $141,000 after buying an additional 1,854 shares during the last quarter. Finally, Ameritas Investment Partners Inc. bought a new stake in shares of Beacon Roofing Supply during the second quarter valued at $212,000.
Beacon Roofing Supply Company Profile
Beacon Roofing Supply, Inc is a distributor of residential and non-residential roofing materials in the United States. The Company operates in the wholesale distribution of building materials segment. The Company distributes other complementary building materials, such as waterproofing systems for residential and non-residential building exteriors.
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