Royal Bank of Canada Raises Price Target for Beacon Roofing Supply

The Royal Bank of Canada has recently increased its price target for Beacon Roofing Supply (NASDAQ:BECN) from $113.00 to $114.00. This adjustment was made in a research report that was published on Friday and is seen as a positive indication for the company's stock. The new price target suggests a potential upside of 21.30% from the stock's current trading price. The Royal Bank of Canada has given Beacon Roofing Supply an "outperform" rating, signaling their expectation of the company's strong financial performance.

In addition to Royal Bank of Canada's rating, several other analysts have shared their insights regarding Beacon Roofing Supply's shares. Robert W. Baird has boosted their target price for the company from $115.00 to $120.00, maintaining an "outperform" rating in a report issued on Wednesday, October 16th. Conversely, Stephens has lowered their target price from $107.00 to $95.00, categorizing the stock with an "equal weight" rating in a report published on August 5th. Furthermore, Benchmark has reiterated a "buy" recommendation and set a price target of $140.00 for Beacon Roofing Supply. Overall, the consensus rating from analysts indicates a Moderate Buy, with a target price averaging around $115.00, as stated by MarketBeat.com.

Beacon Roofing Supply's Market Performance

On Friday, during midday trading, shares of Beacon Roofing Supply saw an increase, climbing $1.91 to reach a price of $93.98. During this period, a total of 237,348 shares were traded, which contrasts with the average trading volume of 711,443 shares. Beacon Roofing Supply currently holds a market capitalization of $5.81 billion and exhibits a price-to-earnings ratio of 16.00 along with a beta of 1.55. The company's financial ratios include a quick ratio of 1.09 and a current ratio of 1.90, with a debt-to-equity ratio standing at 1.75. Over the past year, the stock has experienced a low of $71.48 and a high of $105.42, while showing a 50-day moving average of $88.91 and a 200-day moving average of $92.22.

Recent Earnings Results

Beacon Roofing Supply released its latest earnings figures on October 30th. The company reported earnings per share (EPS) of $2.80 for the quarter, which fell short of analyst expectations by $0.08, as the consensus estimate was $2.88. Revenue for the quarter was reported at $2.77 billion, slightly below analyst forecasts of $2.78 billion. The company's return on equity was recorded at 25.64%, with a net margin of 3.86%. Analysts predict that Beacon Roofing Supply will achieve an EPS of 7.37 for the current fiscal year.

Insider Transactions

Recent insider trading activity also highlights confidence in Beacon Roofing Supply. CFO Prithvi Gandhi purchased 5,000 shares on August 7th at an average price of $82.29, totaling $411,450. After this transaction, he holds 5,000 shares valued at approximately that same amount. In contrast, on October 7th, insider Jason L. Taylor sold 2,600 shares at an average price of $90.00, realizing a total of $234,000. Following this sale, Taylor retains 9,131 shares, with a current estimated value of around $821,790. Notably, company insiders currently own 1.30% of the company’s stock.

Institutional Investor Activity

Institutional investors have also made significant adjustments to their holdings in Beacon Roofing Supply. For example, Allspring Global Investments Holdings LLC acquired a new stake in the firm during the first quarter, worth approximately $26,000. Likewise, Blue Trust Inc. increased its shareholding by 222.1% in the third quarter, now owning 306 shares valued at $28,000 after acquiring an additional 211 shares. PNC Financial Services Group Inc. augmented its stake by 145.0% in the fourth quarter, resulting in ownership of 343 shares valued at $30,000. Furthermore, GAMMA Investing LLC raised its stake by 154.0% in the third quarter, while Plato Investment Management Ltd increased its position by 140.3% in the first quarter. Overall, institutional and hedge fund ownership in Beacon Roofing Supply is approximately 98.45%.

Company Overview

Beacon Roofing Supply, Inc., along with its subsidiaries, focuses on distributing roofing materials, both residential and non-residential, and complementary building products. The company serves contractors, home builders, building owners, lumberyards, and retailers across the United States and Canada. Their product range includes pitched roofing, low slope roof products, gutters, siding, and various building materials like lumber, skylights, plywood, and HVAC products, among others.

Beacon, Stock, Forecast