Zacks Investment Research Lowers Beacon Roofing Supply (BECN) to Hold

Zacks Investment Research downgraded shares of Beacon Roofing Supply (NASDAQ:BECN) from a strong-buy rating to a hold rating in a research note issued to investors on Monday.

According to Zacks, “Beacon Roofing's acquisition of Allied Building Products will catapult it to one of the largest public wholesale building materials distributors in the United States and Canada. The buyout will not only expand product offerings, but also increase geographical reach in both existing and new markets while ensuring significant cost synergies. However, Beacon Roofing has funded the Allied Building Products acquisition by taking up debt. Beacon Roofing is witnessing strong sales growth within the three product lines and across almost all geographies. The momentum is expected to continue in fiscal 2018. Beacon Roofing is also expected to benefit from the rebuilding activity triggered by the two back-to-back hurricanes. The company is also striving to improve margins by managing costs. However, competitive pricing pressure, higher operating costs remain headwinds.”

Several other analysts have also recently commented on the company. SunTrust Banks reissued a buy rating and issued a $55.00 price target on shares of Beacon Roofing Supply in a research note on Monday, October 2nd. Jefferies Group reissued a buy rating and issued a $73.00 price target on shares of Beacon Roofing Supply in a research note on Wednesday, January 17th. BidaskClub lowered Beacon Roofing Supply from a buy rating to a hold rating in a research note on Tuesday, January 9th. Royal Bank of Canada reissued a buy rating and issued a $53.00 price target on shares of Beacon Roofing Supply in a research note on Tuesday, October 10th. Finally, Robert W. Baird reissued an outperform rating and issued a $70.00 price target (up from $55.00) on shares of Beacon Roofing Supply in a research note on Tuesday, November 21st. Five investment analysts have rated the stock with a hold rating and seven have assigned a buy rating to the company. Beacon Roofing Supply presently has a consensus rating of Buy and an average target price of $58.82.

Shares of Beacon Roofing Supply (NASDAQ BECN) traded down $0.15 during mid-day trading on Monday, reaching $62.49. The company had a trading volume of 405,500 shares, compared to its average volume of 678,943. Beacon Roofing Supply has a 1-year low of $39.57 and a 1-year high of $66.47. The company has a market capitalization of $4,220.00, a PE ratio of 38.10, a PEG ratio of 1.30 and a beta of 1.49. The company has a debt-to-equity ratio of 0.42, a current ratio of 2.06 and a quick ratio of 1.35.

Beacon Roofing Supply (NASDAQ:BECN) last announced its earnings results on Monday, November 20th. The company reported $0.93 EPS for the quarter, missing the Thomson Reuters’ consensus estimate of $0.94 by ($0.01). Beacon Roofing Supply had a net margin of 2.30% and a return on equity of 9.09%. The company had revenue of $1.29 billion during the quarter, compared to the consensus estimate of $1.26 billion. During the same quarter in the previous year, the company earned $0.88 earnings per share. The business’s revenue was up 9.8% on a year-over-year basis. sell-side analysts predict that Beacon Roofing Supply will post 3.2 earnings per share for the current year.

In other news, CEO Paul Isabella sold 40,000 shares of the company’s stock in a transaction that occurred on Monday, November 27th. The stock was sold at an average price of $60.57, for a total transaction of $2,422,800.00. Following the transaction, the chief executive officer now directly owns 172,046 shares of the company’s stock, valued at $10,420,826.22. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, EVP Ross D. Cooper sold 2,000 shares of the company’s stock in a transaction that occurred on Tuesday, November 21st. The stock was sold at an average price of $59.75, for a total value of $119,500.00. Following the transaction, the executive vice president now directly owns 7,056 shares in the company, valued at $421,596. The disclosure for this sale can be found here. 0.77% of the stock is owned by corporate insiders.

Several large investors have recently modified their holdings of BECN. SG Americas Securities LLC acquired a new position in shares of Beacon Roofing Supply during the second quarter worth approximately $100,000. Zions Bancorporation acquired a new position in shares of Beacon Roofing Supply during the third quarter worth approximately $124,000. Advisor Group Inc. raised its position in shares of Beacon Roofing Supply by 8.9% during the second quarter. Advisor Group Inc. now owns 3,877 shares of the company’s stock worth $190,000 after purchasing an additional 316 shares during the period. Keybank National Association OH purchased a new stake in Beacon Roofing Supply in the 3rd quarter valued at $210,000. Finally, CAPROCK Group Inc. purchased a new stake in Beacon Roofing Supply in the 4th quarter valued at $212,000.

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About Beacon Roofing Supply

Beacon Roofing Supply, Inc is engaged in the distribution of residential and non-residential roofing materials in the United States and Canada. It also distributes complementary building products for residential and non-residential building exteriors. Its product portfolio includes residential roofing products, non-residential roofing products and complementary building products.

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