Private Management Group Inc. has been in the news lately, announcing its decision to reduce its position in Beacon Roofing Supply, Inc. by 46.8% in the fourth quarter of this year. The announcement was made known through the company’s recent filing with the Securities & Exchange Commission and serves as a development worthy of our attention.
Private Management Group has confirmed it now owns 34,508 shares of Beacon Roofing Supply valued at $1,822,000 after recently selling 30,403 shares. The move has caught the attention of financial analysts as it suggests that the private management group is not fully convinced to buy shares in one of America’s top roofing and building materials suppliers.
Headquartered in Herndon, Virginia, Beacon Roofing Supply is involved in the distribution of residential and non-residential roofing materials throughout America. The company also works with manufacturers such as GAF Materials Corporation to distribute complementary products such as siding, windows, exterior specialty products, insulation and waterproofing systems for the exterior of buildings.
Founded in August 1997, the company has grown in dollar terms over time despite market challenges that occasionally hamper its performance curve. According to statistics available on April 22, 2023 on NASDAQ stock exchange’s website, BECN opened at $60.62 per share with a 50-day moving average of $60.03 and a 200-day moving average of $57.51 per share.
Although recently they have been able to scale through challenging sectors while massively improving returns amid the market volatility seen around the world; Investors are cautious about their perception of a long-term investment in Beacon Roofing Supply due to recent ad hoc changes in management approaches implemented by some top executives at Beacon Roofing Supply.
Although insiders at Beacon Roofing Supply believe the initiatives underway will soon improve efficiency metrics toward significant earnings growth; Short-term investors may want to mitigate risk until the dust settles before investing their money in this top umbrella supplier.
Beacon Roofing Supply: Big-name hedge funds and institutional investors are showing interest amid mixed analyst outlook
Beacon Roofing Supply, Inc., a leading distributor of residential and non-residential roofing materials, has recently seen its stock changing hands from well-known hedge funds and institutional investors. In the fourth quarter of 2022, Gladius Capital Management LP acquired a new interest in Beacon Roofing Supply stock valued at $55,000. Similarly, Bessemer Group Inc. increased its stake in the company by 298.6% in the third quarter by acquiring 839 additional shares. Advisor Group Holdings Inc., meanwhile, increased its stake in Beacon Roofing Supply by 37.5% in the first quarter with purchases totaling $65,000. DekaBank Deutsche Girozentrale also recently increased its stake by 23.3%. Interestingly, Pictet Asset Management SA acquired a new stake worth around $200,000 during the same period.
But that’s not all: Cd&R Investment Associates Ix — one of Beacon Roofing’s major shareholders — made some waves when it sold over 100,000 shares earlier this year at an average price of $55.98 per share for a total transaction of over $6 million has acquired! Insiders now own nearly 1% of Beacon Roofing Supply stock.
Beacon Roofing Supply was founded in August 1997 and is headquartered in Herndon, VA; In addition to roofing materials, it also sells supplementary building products such as windows and insulation/sealing systems.
The company released its quarterly earnings data on February 23 this year; They reported earnings per share (EPS) of $1.22 (compared to an estimated $1.16), which is ahead of expectations. The company reported sales of around $1.97 billion for the quarter analyzed – just below estimates of around $2 billion.
Analysts expect Beacon Roofing Supply to report earnings per share of about six for the current fiscal year. Deutsche Bank Aktiengesellschaft gave the company a “buy” rating in a February report and raised its price target to $85 from $81. Similarly, at StockNews.com, they recently began coverage of the stock with a “hold” rating.
Stephens was more cautious about its guidance, raising its price target to $73 from $65 while maintaining an “equal weight” mark on Beacon Roofing Supply stock. Zelman & Associates also downgraded shares from a hold to a sell. Despite this, Robert W. Baird maintained his stance with a recommendation on the stock — although he called for a neutral initiative — and raised his price target to $76 from $65 at the end of February.
All in all, it appears that Beacon Roofing Supply is still viewed as a solid opportunity among market participants, despite some mixed views about its immediate prospects.