Beacon Roofing Supply, Inc. (NASDAQ:BECN) has been causing quite a stir in the market lately as investors try to understand the company’s recent performance. According to Bloomberg.com, eleven analysts currently rate Beacon Roofing Supply with an average consensus rating of “Hold” on the stock. This follows a recent record where one analyst rated the stock with a sell rating, five gave a hold rating and one gave a buy rating.
Based in Virginia, the company is primarily engaged in the distribution of roofing materials for residential and non-residential buildings. In addition, the company offers additional complementary building products such as facade cladding, windows, insulation, waterproofing systems and other exterior building materials for small and large projects.
Interestingly, several hedge funds have recently invested in Beacon Roofing Supply stock. For example, Clayton Dubilier & Rice LLC now owns over 15 million shares of BECN worth $888.34 million. Other significant players include American Century Companies Inc., Price T Rowe Associates Inc. MD, Fiduciary Management Inc. and Frontier Capital Management Co., LLC.
The increased investments from well-known hedge funds reflect confidence in Beacon Roofing Supply’s ability to add value to shareholders amid recent market uncertainties caused by external factors such as the COVID-19 pandemic.
Despite the impressive financial figures achieved by Beacon Roofing Supply in the years following its inception on August 22, 1997; Analyst recommendations continue to suggest that investors should exercise caution when holding their shares. Brokers tracking Beacon Roofing Supply have an average 12-month target price of $70 per share, according to updated coverage reports based on activity over the past year.
Finally; Although Beacon Roofing Supply has demonstrated considerable skill over the years distributing various building products in multiple regions worldwide; Caution is advised when making investment decisions until future improvements materialize – hopefully before June 7, 2024 – and potentially bring new products to market to address different customer preferences.
Beacon Roofing Supply, Inc.
BECN
Strong buy
Updated on: 06/07/2023
price target
Current
Agreed
Low
median
High
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Analyst Ratings
| Analyst / Company | Evaluation |
|---|---|
| Deutsche Bank | Obtain |
| Stephens | Sell |
| JP Morgan | Sell |
| Wells Fargo | Sell |
| Raymond James | Obtain |
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Beacon Roofing Supply is subject to volatility in stock valuations but remains stable despite insider trading and debt concerns
Beacon Roofing Supply, a US-based roofing and building products distributor, has seen some fluctuations in its stock valuations in recent months. Zelman & Associates downgraded the company’s rating to “sell” from “hold,” while StockNews.com recently gave it a “hold” rating. On the other hand, Deutsche Bank increased its price target on Beacon Roofing Supply to $86 from $85, and Robert W. Baird increased its price target to $76 per share from $65.
Most recently, on May 8, Stephens lowered its price target on the company’s shares from $70 to $68. Meanwhile, on April 28, major shareholder Cd&R Investment Associates Ix acquired nearly 100,000 shares of Beacon Roofing Supply in a transaction valued at nearly $6 million. The insider now owns over 15 million shares of the company, valued at nearly $1 billion.
Despite these fluctuations in valuations and insider transactions, Beacon Roofing Supply has remained relatively stable, opening on June 7 at $70.07. The company currently has a market cap of over $4 billion and a P/E of 13.48.
One factor that may have contributed to Beacon Roofing Supply stock’s recent instability is its debt-to-equity ratio of 1.00. Some investors may find this too high to be comfortable with, preferring companies with less debt.
Overall, despite some rating shifts and insider transactions, Beacon Roofing Supply appears to be holding up well and is well positioned in its industry as a distributor of roofing and building materials. Investors should continue to keep an eye on the company’s financials going forward to better understand its long-term stability and growth potential.
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