Beacon Roofing Supply, Inc.: Mixed Analyst Reactions and Hedge Fund Investments Shape Future Growth


The roofing industry is a major player in the construction sector, with Beacon Roofing Supply, Inc. (NASDAQ:BECN) being one of the largest distributors of roofing materials. reports that ten rating firms recently covered BECN, giving it a consensus rating of Hold. This isn’t a surprise as the stock has received mixed reactions from analysts over the past several years. One analyst has a sell recommendation, six recommend holding the stock, while two others recommend buying shares in the company.

In addition to roofing materials, BECN sells complementary products for building envelopes, such as B. special exterior building products, insulation, cladding, windows and sealing systems. The company was incorporated on August 22, 1997 and is headquartered in Herndon, VA.

Recently, several hedge funds have made changes to their positions in BECN. Advisor Group Holdings Inc., for example, increased its position by 37.5% in the first quarter of this year alone — and now owns over 1,000 shares worth an estimated $65,000, according to the latest report.

During the first quarter of this year, Raymond James & Associates also participated, increasing its own holdings by over 11% and now owning more than 13,000 shares worth nearly $800,000.

Another solidifying investment in BECN is Raymond James Financial Services Advisors Inc., which recently raised a new stake worth around $317,000, it was reported earlier this month. Meanwhile, AlphaCrest Capital Management LLC has increased its position by 4% over the same period — and now owns over 7,000 shares worth about $419,000 today.

Bank of Montreal Can brought up the rear in the Q1 rounds; but still felt it appropriate to show confidence through an elevated position of around 27%. With these kinds of numbers, which include moves from top investors and groups coming together like clockwork throughout the second quarter so far, no one can imagine where BECN will end up in August 2023, but one thing is for sure — it will Certainly an exciting journey.

Beacon Roofing Supply: Strong financials and a split market opinion

Beacon Roofing Supply is a company engaged in the distribution of residential and non-residential roofing materials and other complementary building products. Beacon Roofing was founded in 1997 and is headquartered in Herndon, VA. Beacon Roofing has grown to become a leading supplier of roofing and exterior building material products throughout North America.

The company’s recent moves have caught the attention of several research analysts. On Monday, December 19, Stifel Nicolaus increased his price target on Beacon Roofing Supply to $91.00 from $80.00 and gave the company a buy rating. The report mentions the strong potential gains that investors can expect by adding beacon roofing to their portfolio.

However, this isn’t the only report that has come out recently on Beacon Roofing stocks; Deutsche Bank Aktiengesellschaft also raised its price target to $85.00 from $81.00, while Zelman & Associates lowered the stock from a “hold” rating to a “sell” rating on March 10.

Meanwhile, a major shareholder — Cd&R Investment Associates Ix — bought 107,185 shares of Beacon Roofing Supply at an average price of $55.98 per share. Accompanying this news was a disclosure in a filing with the Securities & Exchange Commission.

Beacon Roofing Supply’s financial results, released on February 23, are behind much of this recent investor interest. The company beat consensus estimates with earnings per share (EPS) of $1.22 for the quarter and revenue of nearly $2 billion, compared to analyst expectations of $1.98 billion.

The stock-based compensation expense associated with some recent acquisition activity also needs to be noted: On February 27, Robert W. Baird downgraded a neutral rating and increased his price target to $76 from $65 on the expectation that these deals would increase Revenue would result in growth over time.

NASDAQ BECN is currently opening at $59.40, with a 52-week high of $68.31 and a low of $45.71. The company’s market cap is $3.82 billion, with a price-to-earnings ratio of 10.68 and a beta of 1.57.

In summary, Beacon Roofing Supply has solid numbers, but analyst reports are mixed; those wishing to invest in the company should proceed with caution and study its finances carefully before making any decisions.