Beacon Roofing Supply Inc. (NASDAQ: BECN) stock jumped 0.50% on Thursday to $66.00 against a previous-day closing price of $65.67. With 0.56 million shares changed hands, the volume of the stock remained heavier than its average volume of 0.39 million shares. During the session, the Building Products & Equipment company that operates in wider Industrials sector, reached to the highest price of $66.67 whereas the lowest price it dropped to was $65.08. The 52-week range on BECN shows that it touched its highest point at $68.31 and its lowest point at $45.71 during that stretch. It currently has a 1-year price target of $76.45. Beta for the stock currently stands at 1.57.
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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 BECN was up-trending over the past week, with a rise of 0.49%, but this was up by 15.30% over a month. Three-month performance surged to 1.12% while six-month performance rose 11.79%. The stock gained 12.67% in the past year, while it has gained 25.02% so far this year. A look at the trailing 12-month EPS for BECN yields 6.03 with Next year EPS estimates of 6.60. For the next quarter, that number is 2.20. This implies an EPS growth rate of 731.70% for this year and 3.86% for next year. EPS is expected to grow by 8.83% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 69.10%.
Float and Shares Shorts:
At present, 64.30 million BECN shares are outstanding with a float of 49.74 million shares on hand for trading. On Apr 27, 2023, short shares totaled 1.89 million, which was 2.95% higher than short shares on Mar 30, 2023. In addition to Mr. Julian G. Francis as the firm’s Pres, CEO & Director, Mr. Frank A. Lonegro serves as its Exec. VP & CFO.
Through their ownership of 104.19% of BECN’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 44.54% of BECN, in contrast to 36.16% held by mutual funds. Shares owned by individuals account for 25.73%. As the largest shareholder in BECN with 8.32% of the stake, Fidelity Management & Research Co holds 5,348,283 shares worth 5,348,283. A second-largest stockholder of BECN, The Vanguard Group, Inc., holds 4,715,985 shares, controlling over 7.34% of the firm’s shares. American Century Investment Manag is the third largest shareholder in BECN, holding 3,963,646 shares or 6.17% stake. With a 2.97% stake in BECN, the American Century Small Cap Value is the largest stakeholder. A total of 1,905,000 shares are owned by the mutual fund manager. The Undiscovered Managers Behavioral, which owns about 2.13% of BECN stock, is the second-largest Mutual Fund holder. It holds 1,367,286 shares valued at 82.28 million. T Rowe Price Small Cap Value Fund holds 2.08% of the stake in BECN, owning 1,337,445 shares worth 80.49 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, BECN reported revenue of $2.36B and operating income of $254.40M. The EBITDA in the recently reported quarter was $294.80M and diluted EPS was $2.12.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for BECN 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 BECN analysts setting a high price target of $100.00 and a low target of $61.00, the average target price over the next 12 months is $75.67. Based on these targets, BECN could surge 51.52% to reach the target high and fall by -7.58% to reach the target low. Reaching the average price target will result in a growth of 14.65% 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 BECN stock several times over the past three months with 6 Buys and 0 Sells. In these transactions, 112,546 shares were bought while 0 shares were sold. The number of buy transactions has increased to 29 while that of sell transactions has risen to 22 over the past year. The total number of shares bought during that period was 580,884 while 87,196 shares were sold.