FirstService (NASDAQ:FSV) Shares Decline 4.9% - Is It Time to Sell?

FirstService Corporation (NASDAQ:FSV) experienced a notable drop in its stock price, falling by 4.9% during trading on Wednesday. The stock hit a low of $173.95 before settling at $172.80 by the end of the trading day. In total, around 54,261 shares changed hands during this period, marking a 54% decrease from the average daily trading volume of 117,762 shares. The stock had previously closed at $181.65.

Analysts Predict Continued Growth

In light of this price movement, several analysts have recently shared their insights on FirstService. On October 21st, Stifel Nicolaus raised their price target for the company from $200.00 to $215.00, maintaining a "buy" rating. StockNews.com followed suit by upgrading FirstService's ratings from "hold" to "buy" on October 25th. Similarly, Scotiabank increased their price target from $190.00 to $200.00 while rating the stock as a "sector perform" on October 15th. Raymond James raised their target from $215.00 to $225.00, awarding an "outperform" rating in a report published on January 30th. Finally, TD Securities adjusted their price target from $179.00 to $182.00 alongside a "hold" rating on October 17th. Overall, out of the analysts covering the stock, two have a hold rating while five have a buy rating. Currently, according to MarketBeat.com, FirstService holds a consensus rating of "Moderate Buy" with an average target price set at $201.67.

FirstService Stock Overview

Looking at the stock’s performance over time, it has a 50-day moving average price of $184.60 and a 200-day moving average price of $181.91. FirstService has a market capitalization of approximately $7.85 billion, a price-to-earnings (P/E) ratio of 72.25, and a beta value of 1.06, indicating a relatively higher volatility compared to the overall market. Financially, the company boasts a quick ratio of 1.79, a current ratio of 1.79, and a debt-to-equity ratio of 1.13, suggesting a stable short-term liquidity position.

Dividends on the Rise

In addition to its market performance, FirstService recently announced an increase in its quarterly dividend. The new dividend of $0.275 per share will be distributed on May 7th to investors who are on record as of March 31st. This change represents a rise from the previous dividend of $0.25 and amounts to an annualized dividend of $1.10, providing a yield of 0.63%. The firm's dividend payout ratio stands at 41.67%, indicating a sound policy of returning value to shareholders.

Ownership Trends Among Institutional Investors

Recently, there have been significant shifts among institutional investors in relation to FirstService's stock. For example, Conestoga Capital Advisors LLC increased their shareholding by 1.6% during the third quarter, owning 1,449,933 shares valued at approximately $264.6 million after acquiring additional shares. Franklin Resources Inc. ramped up their stake significantly by 486.3%, now holding 469,141 shares valued around $87.3 million after acquiring 389,129 shares. Other notable changes include CIBC Asset Management Inc., which grew its holdings by 57.4%, and Bank of Montreal Can, which saw a 19.7% increase in their ownership percentage. Currently, institutional investors hold around 69.35% of FirstService's total stock, reflecting confidence in the company's performance and prospects.

Understanding FirstService

FirstService Corporation, along with its subsidiaries, provides vital services in property management and related areas for residential and commercial clients throughout the United States and Canada. The organization operates through two primary segments: FirstService Residential, which focuses on managing private residential communities, and FirstService Brands, which encompasses a variety of essential property services.

Final Thoughts

As investors navigate the current financial landscape, FirstService's recent stock decline and potential growth prospects are compelling points of consideration. Analysts express optimism regarding the company, despite the short-term slump. Investors may want to assess their positions in light of these insights.

FirstService, Stocks, Dividends