Nordea Investment Management AB is reducing Beacon Roofing Supply stocks amid market volatility
Date: July 3, 2023
In the first quarter of 2023, Nordea Investment Management AB, a leading investment management company, reduced its stake in Beacon Roofing Supply, Inc. (NASDAQ:BECN). The move is part of the company’s strategic portfolio adjustments in light of market turmoil and increasing uncertainty in the roofing materials distribution industry.
Beacon Roofing Supply Business Overview:
Headquartered in the United States, Beacon Roofing Supply, Inc. is a leading distributor of residential and non-residential roofing materials and ancillary building products to both the American and Canadian markets. The company supplies contractors, home builders, builders, lumberjacks and retailers. The extensive product line includes products for pitched and low pitched roofs, gutters and siding, insulation products, HVAC equipment, decking and railing materials, among others.
Position of Nordea Investment Management AB:
According to recent filings with the Securities and Exchange Commission (SEC), Nordea Investment Management AB reported a 1.5% decline in its holdings in Beacon Roofing Supply in the first quarter. The investment management company now owns approximately 193,554 shares, having sold 3,029 shares during this period.
In addition, Nordea Investment Management AB announced that its ownership interest represents approximately 0.30% of the total market value of Beacon Roofing Supply. At the time of the SEC filing, that stake was valued at $11,302,000.
Financial performance of Beacon Roofing Supply:
In Monday’s trading session on the NASDAQ®, Beacon Roofing Supply opened at $82.98 per share. The company has a market cap of $5.29 billion with a price-to-earnings (P/E) ratio of around 15.96 and a beta of 1.58. These numbers give investors insight into the company’s valuation and gauge its volatility relative to the overall market.
Additionally, Beacon Roofing Supply has recently shown positive momentum in its stock price, as evidenced by its 50-day moving average price of $68.51. Additionally, the 200-day moving average price of $61.59 remains higher, suggesting a sustained upward move for a longer period of time.
Taking into account the Company’s financial position, Beacon Roofing Supply has a stable debt to equity ratio of 1.00 and an acceptable current ratio of 2.07 and short term ratio of 1.09. These metrics reflect the company’s ability to meet its short-term financial commitments efficiently.
Diploma:
Given the recent adjustment Nordea Investment Management AB made to reduce its position in Beacon Roofing Supply, Inc., it is crucial to assess the ongoing market volatility and uncertainties in the roofing materials distribution industry.
As investors navigate this challenging environment, they should remain vigilant and continue to conduct in-depth analysis based on financial performance indicators such as historical stock prices, market capitalization and debt ratios. Only then can they make informed decisions about their investment portfolios while staying abreast of new opportunities in this dynamic sector.
Disclaimer: The article is provided for general information only and does not constitute professional financial advice or a recommendation for any trading decision. Investors are advised to conduct their own research and seek advice from licensed professionals before making any investment decision based on the content of this article.
Beacon Roofing Supply, Inc.
BECN
Strong buy
Updated on: 07/04/2023
price target
Current
Agreed
Low
median
High
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Analyst Ratings
| Analyst / Company | Evaluation |
|---|---|
|
Sticky Mamtora |
Obtain |
| Deutsche Bank | Sell |
| Stephens | Sell |
| JP Morgan | Sell |
| Wells Fargo | Sell |
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Changes in institutional investor inventory and research reports affect Beacon Roofing Supply, Inc.
Beacon Roofing Supply, Inc. is a leading distributor of residential and non-residential roofing materials and other building products in the United States and Canada. The company has recently seen some changes in its institutional investor holdings and has received reports from various research firms.
Clayton Dubilier & Rice LLC, an institutional investor, increased its stake in Beacon Roofing Supply by 0.7% during the fourth quarter. They now own over 14 million shares of the company’s stock, valued at approximately $791 million. American Century Companies Inc., another institutional investor, also increased its stake in Beacon Roofing Supply by 53.5% during the same period and now owned over 3 million shares worth approximately $192 million.
Price T Rowe Associates Inc. MD and Fuller & Thaler Asset Management Inc. also added to their stakes in Beacon Roofing Supply in the second and fourth quarters, respectively, with Morgan Stanley noting significant growth by increasing its stake by nearly 468%.
Several research firms have published reports on Beacon Roofing Supply’s stock. StockNews.com began coverage with a “hold” rating for the company, while Deutsche Bank Aktiengesellschaft raised its price target from $85 to $86 per share in a May research note.
Loop Capital increased its price target to $84 per share from $76, while Stephens lowered its price target to $68 per share from $70. Finally, TheStreet downgraded Beacon Roofing Supply’s rating from “b” to “c”. Taken together, data from Bloomberg.com shows that the stock currently has a consensus rating of Hold and an average price target of $76 per share.
According to the company’s most recent earnings report, dated May 4, Beacon Roofing Supply beat analysts’ expectations for earnings per share, reporting $0.67 instead of an estimated $0.61. However, its earnings fell slightly short of expectations, coming in at $1.73 billion instead of the forecast $1.78 billion.
Additionally, major shareholder Cd&R Investment Associates Ix made a significant purchase of nearly 100,000 shares in April. This insider now owns over 15 million shares of Beacon Roofing Supply. Additionally, in June, a company executive sold over 10,000 shares at an average price of $72.43 per share.
These recent changes in institutional holdings and reports from research firms indicate that there is some uncertainty as to the future performance of Beacon Roofing Supply. However, the company remains a major player in the distribution of roofing materials and building products in North America. Investors will closely monitor further developments and financial results as this fiscal year progresses.
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