What is The AZEK Company Inc. (AZEK) Stock Return on Shareholders’ Capital?

The AZEK Company Inc. (NYSE: AZEK) stock fell -0.25% on Wednesday to $23.58 against a previous-day closing price of $23.64. With 1.99 million shares changed hands, the volume of the stock remained heavier than its average volume of 1.54 million shares. During the session, the Building Products & Equipment company that operates in wider Industrials sector, reached to the highest price of $23.67 whereas the lowest price it dropped to was $23.19. The 52-week range on AZEK shows that it touched its highest point at $30.26 and its lowest point at $15.12 during that stretch. It currently has a 1-year price target of $29.89.

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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 -4.84%, but this was down by -10.38% over a month. Three-month performance dropped to -2.40% while six-month performance rose 26.50%. The stock gained 21.17% in the past year, while it has gained 16.04% so far this year. A look at the trailing 12-month EPS for AZEK yields 0.08 with Next year EPS estimates of 0.90. For the next quarter, that number is 0.25. This implies an EPS growth rate of -18.10% for this year and 50.75% for next year. EPS is expected to grow by 9.50% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 24.80%.

Float and Shares Shorts:

At present, 150.71 million AZEK shares are outstanding with a float of 146.47 million shares on hand for trading. On Apr 27, 2023, short shares totaled 7.76 million, which was 5.14% higher than short shares on Mar 30, 2023. In addition to Mr. Jesse G. Singh as the firm’s CEO, Pres & Director, Mr. Peter G. Clifford serves as its Sr. VP, CFO & Interim Principal Accounting Officer.

Institutional Ownership:

Through their ownership of 108.62% of AZEK’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 67.08% of AZEK, in contrast to 29.38% held by mutual funds. Shares owned by individuals account for 17.60%. As the largest shareholder in AZEK with 7.73% of the stake, Capital Research & Management Co holds 11,647,271 shares worth 11,647,271. A second-largest stockholder of AZEK, The Vanguard Group, Inc., holds 10,710,354 shares, controlling over 7.11% of the firm’s shares. Wellington Management Co. LLP is the third largest shareholder in AZEK, holding 9,227,941 shares or 6.12% stake. With a 12.67% 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 7.70% of AZEK stock, is the second-largest Mutual Fund holder. It holds 11,599,140 shares valued at 314.8 million. American Funds AMCAP Fund holds 3.07% of the stake in AZEK, owning 4,630,400 shares worth 125.67 million.

An Overview of Recent Financials:

Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Mar 30, 2023, AZEK reported revenue of $394.99M and operating income of $47.65M. The EBITDA in the recently reported quarter was $77.26M and diluted EPS was $0.18.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for AZEK since 0 analysts follow the stock currently. 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 $34.00 and a low target of $17.00, the average target price over the next 12 months is $29.90. Based on these targets, AZEK could surge 44.19% to reach the target high and fall by -27.91% to reach the target low. Reaching the average price target will result in a growth of 26.8% 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.

Summary of Insider Activity:

Insiders traded AZEK stock several times over the past three months with 7 Buys and 7 Sells. In these transactions, 78,644 shares were bought while 92,310 shares were sold. The number of buy transactions has increased to 29 while that of sell transactions has risen to 25 over the past year. The total number of shares bought during that period was 228,712 while 9,651,471 shares were sold.

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