Beacon Roofing Supply Receives Buy Rating from Benchmark

Beacon Roofing Supply (NASDAQ:BECN) recently had its "buy" rating reaffirmed by Benchmark in a research note published on Friday. The firm has set a target price of $140.00 for the stock, indicating a potential upside of 50.10% from where the stock is currently trading.

A few other financial institutions have also made updates regarding their ratings on Beacon Roofing Supply. On October 16th, Robert W. Baird increased its target price from $115.00 to $120.00 while maintaining an "outperform" rating. Conversely, Stephens lowered their price target for the stock from $107.00 to $95.00, designating it with an "equal weight" rating. Additionally, on August 2nd, the Royal Bank of Canada adjusted its target price down from $119.00 to $113.00, while also keeping an "outperform" rating. Currently, the stock is rated by three analysts as a hold, while eight have given it a buy rating. According to MarketBeat data, Beacon Roofing Supply holds a consensus rating of "Moderate Buy" with an average target price of $114.89.

Stock Performance

On Friday, shares of Beacon Roofing Supply rose by $1.20 to trade at $93.27. The company’s trading volume was noted at 25,733 shares, significantly lower than the average volume of 710,559 shares. The stock has a 52-week low of $71.48 and a high of $105.42. Its current market capitalization stands at $5.77 billion, with a price-to-earnings (PE) ratio of 15.94 and a beta of 1.55. The 50-day and 200-day simple moving averages for the stock are $88.91 and $92.22, respectively. Financial metrics including a current ratio of 1.90, a quick ratio of 1.09, and a debt-to-equity ratio of 1.75 further characterize the company’s financial profile.

Recently, Beacon Roofing Supply announced its quarterly earnings data on October 30th. The company reported earnings of $2.80 per share, which fell short of the consensus estimate of $2.88 by $0.08. The company also achieved a return on equity of 25.64% and a net margin of 3.86%. Revenue for the quarter amounted to $2.77 billion, slightly below the consensus expectation of $2.78 billion. Analysts are forecasting that Beacon Roofing Supply will post earnings of 7.37 per share for the current year.

Insider Trading Activity

In recent insider trading news, CFO Prithvi Gandhi bought 5,000 shares of the company on August 7th at an average cost of $82.29 per share. The total for this transaction amounted to $411,450. This acquisition increased Gandhi’s holding to 5,000 shares, also valued at approximately $411,450. Additionally, insider Jason L. Taylor sold 2,600 shares on October 7th at an average price of $90.00, bringing in a total of $234,000. After this transaction, Taylor holds 9,131 shares in the company, which are valued at about $821,790. Overall, company insiders own around 1.30% of the total shares.

Institutional Investments in Beacon Roofing Supply

Institutional investors and hedge funds have made several adjustments to their positions in Beacon Roofing Supply recently. For instance, US Bancorp DE increased its stake by 2.3% in the third quarter, owning 5,255 shares worth approximately $454,000 after acquiring 116 additional shares. Similarly, Vanguard Personalized Indexing Management LLC boosted its stake by 2.7% during the second quarter, now holding 5,538 shares valued at $501,000. Other entities, like SummerHaven Investment Management LLC and QRG Capital Management, also reported growth in their positions in the company. Currently, institutional investors and hedge funds control 98.45% of Beacon Roofing Supply's shares.

About Beacon Roofing Supply

Beacon Roofing Supply, Inc., along with its subsidiaries, plays a significant role in the distribution of roofing materials for both residential and non-residential applications. They supply a variety of complementary building products to contractors, home builders, retail outlets, and lumberyards in the United States as well as Canada. Their product range includes pitched roofing and low slope roof products, gutters, sidings, among other building materials.

Beacon, Roofing, Supply