Zacks Research Upgrades Core & Main (NYSE:CNM) to Strong-Buy

Core & Main (NYSE:CNM) was upgraded by analysts at Zacks Research from a “hold” rating to a “strong-buy” rating in a report issued on Wednesday,Zacks.com reports.

A number of other equities analysts also recently commented on the company. Barclays cut their price objective on Core & Main from $65.00 to $63.00 and set an “overweight” rating on the stock in a report on Monday, December 1st. JPMorgan Chase & Co. raised their price target on shares of Core & Main from $58.00 to $59.00 and gave the company an “overweight” rating in a report on Wednesday, December 10th. Truist Financial reduced their price target on shares of Core & Main from $56.00 to $50.00 and set a “hold” rating on the stock in a research report on Thursday, September 11th. The Goldman Sachs Group dropped their price objective on shares of Core & Main from $68.00 to $60.00 and set a “neutral” rating for the company in a research report on Friday, September 12th. Finally, Wells Fargo & Company lifted their target price on shares of Core & Main from $55.00 to $57.00 and gave the company an “overweight” rating in a report on Wednesday, December 10th. One equities research analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating and four have assigned a Hold rating to the stock. According to data from MarketBeat.com, Core & Main has an average rating of “Moderate Buy” and a consensus price target of $60.82.

Core & Main Stock Up 2.7%

Shares of CNM opened at $53.38 on Wednesday. Core & Main has a fifty-two week low of $43.17 and a fifty-two week high of $67.18. The company’s fifty day moving average is $51.03 and its two-hundred day moving average is $56.07. The firm has a market cap of $10.44 billion, a PE ratio of 23.52, a price-to-earnings-growth ratio of 1.87 and a beta of 0.98. The company has a quick ratio of 1.35, a current ratio of 2.26 and a debt-to-equity ratio of 1.04.

Core & Main (NYSE:CNM) last released its quarterly earnings data on Tuesday, December 9th. The company reported $0.72 EPS for the quarter, hitting analysts’ consensus estimates of $0.72. Core & Main had a return on equity of 24.63% and a net margin of 5.60%.The business had revenue of $2.06 billion during the quarter, compared to the consensus estimate of $2.06 billion. During the same period in the prior year, the firm posted $0.69 EPS. The business’s revenue for the quarter was up 1.2% on a year-over-year basis. Analysts forecast that Core & Main will post 2.16 earnings per share for the current year.

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

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the company. Hudson Bay Capital Management LP purchased a new stake in Core & Main during the 3rd quarter worth $14,441,000. Allworth Financial LP grew its stake in shares of Core & Main by 14.3% during the third quarter. Allworth Financial LP now owns 10,351 shares of the company’s stock valued at $557,000 after acquiring an additional 1,296 shares in the last quarter. Swiss Life Asset Management Ltd increased its position in shares of Core & Main by 79.4% during the third quarter. Swiss Life Asset Management Ltd now owns 8,825 shares of the company’s stock worth $475,000 after acquiring an additional 3,907 shares during the last quarter. CIBC Bancorp USA Inc. purchased a new stake in shares of Core & Main during the third quarter worth about $676,000. Finally, Wilmington Savings Fund Society FSB lifted its stake in shares of Core & Main by 47.8% in the third quarter. Wilmington Savings Fund Society FSB now owns 961 shares of the company’s stock worth $52,000 after acquiring an additional 311 shares in the last quarter. 94.19% of the stock is currently owned by hedge funds and other institutional investors.

About Core & Main

Core & Main, Inc (NYSE:CNM) is a leading distributor of water, sewer, storm drainage and fire protection products across North America. The company’s product portfolio includes valves, hydrants, pipe and fittings, meters, couplings and other essential components that support municipal, industrial and environmental infrastructure projects. By combining a comprehensive inventory with logistics and technical support, Core & Main helps customers address complex water system and distribution challenges.

With more than 300 branch locations and over 3,500 employees, Core & Main serves a diverse customer base that includes municipalities, contractors, engineers and utility providers.