The AZEK Company Inc. (NYSE: AZEK) stock fell -0.57% on Friday to $17.45 against a previous-day closing price of $17.55. With 1.19 million shares changed hands, the volume of the stock remained lighter than its average volume of 1.78 million shares. During the session, the Building Products & Equipment company that operates in wider Industrials sector, reached to the highest price of $18.22 whereas the lowest price it dropped to was $17.44. The 52-week range on AZEK shows that it touched its highest point at $46.56 and its lowest point at $15.52 during that stretch. It currently has a 1-year price target of $25.58.
Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of AZEK was down-trending over the past week, with a drop of -2.57%, but this was down by -11.15% over a month. Three-month performance surged to 6.01% while six-month performance fell -36.59%. The stock lost -54.85% in the past year, while it has lost -62.26% so far this year. A look at the trailing 12-month EPS for AZEK yields 0.76 with Next year EPS estimates of 1.01. For the next quarter, that number is 0.18. This implies an EPS growth rate of 175.20% for this year and 3.47% for next year.
Float and Shares Shorts:
At present, 153.49 million AZEK shares are outstanding with a float of 147.02 million shares on hand for trading. On Jul 14, 2022, short shares totaled 5.31 million, which was 3.42% higher than short shares on Jun 14, 2022. In addition to Mr. Jesse G. Singh as the firm’s CEO, Pres & Director, Mr. Peter G. Clifford serves as its Sr. VP & CFO.
Through their ownership of 101.65% of AZEK’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 53.84% of AZEK, in contrast to 48.78% held by mutual funds. Shares owned by individuals account for 33.94%. As the largest shareholder in AZEK with 12.55% of the stake, Ares Management LLC holds 19,096,090 shares worth 19,096,090. A second-largest stockholder of AZEK, Ontario Teachers’ Pension Plan Bo, holds 19,095,990 shares, controlling over 12.55% of the firm’s shares. The Vanguard Group, Inc. is the third largest shareholder in AZEK, holding 9,988,113 shares or 6.57% stake. With a 12.55% stake in AZEK, the Ontario Teachers Pension Plan is the largest stakeholder. A total of 19,096,680 shares are owned by the mutual fund manager. The American Funds Small Cap World Fu, which owns about 2.91% of AZEK stock, is the second-largest Mutual Fund holder. It holds 4,423,400 shares valued at 80.73 million. Vanguard Total Stock Market Index holds 2.12% of the stake in AZEK, owning 3,231,717 shares worth 58.98 million.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for AZEK since 20 analysts follow the stock currently. There are 16 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 2 believe that the stock is worth HOLDING, 2 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With AZEK analysts setting a high price target of $30.00 and a low target of $20.00, the average target price over the next 12 months is $25.45. Based on these targets, AZEK could surge 71.92% to reach the target high and rise by 14.61% to reach the target low. Reaching the average price target will result in a growth of 45.85% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. AZEK will report FY 2022 earnings on 11/17/2022. Analysts have provided yearly estimates in a range of $1.00 being high and $0.95 being low. For AZEK, this leads to a yearly average estimate of $0.98. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. The AZEK Company Inc. surprised analysts by $0.03 when it reported $0.29 EPS against a consensus estimate of $0.26. The surprise factor in the prior quarter was $0.03. Based on analyst estimates, the high estimate for the next quarter is $0.20 and the low estimate is $0.14. The average estimate for the next quarter is thus $0.18.
Summary of Insider Activity:
Insiders traded AZEK stock several times over the past three months with 5 Buys and 1 Sells. In these transactions, 31,603 shares were bought while 2,411 shares were sold. The number of buy transactions has increased to 40 while that of sell transactions has risen to 16 over the past year. The total number of shares bought during that period was 188,336 while 124,271 shares were sold.