Beacon Roofing Supply Receives Buy Rating from Benchmark

Beacon Roofing Supply (NASDAQ:BECN) has been given a "buy" rating once again by Benchmark in a recent research report that was made public on Friday. The report set a price target of $140.00 for the company’s shares. This target price indicates a potential increase of 50.10% from the current trading price of the stock.

A few other research firms have also commented on Beacon Roofing Supply. For instance, Robert W. Baird increased its target price from $115.00 to $120.00, concurrently giving the company an "outperform" rating on October 16th. Meanwhile, Stephens reduced its price target from $107.00 to $95.00 and rated the stock as "equal weight" on August 5th. Additionally, the Royal Bank of Canada decreased its target from $119.00 to $113.00 while maintaining an "outperform" rating in a report released on August 2nd. Currently, three analysts rate the stock with a hold rating, while eight analysts recommend it as a buy. As per MarketBeat data, the average rating of the stock is "Moderate Buy," with a consensus target price of $114.89.

Beacon Roofing Supply Stock Overview

On Friday, shares of Beacon Roofing Supply increased by $1.20 during trading hours, reaching a price of $93.27. The trading volume for the company was 25,733 shares, significantly lower than its average daily volume of 710,559 shares. The stock has experienced a range over the past year, with a low of $71.48 and a high of $105.42. Beacon Roofing Supply has a market capitalization of $5.77 billion, a P/E ratio of 15.94, and a beta of 1.55. Its 50-day moving average is $88.91, while the 200-day moving average stands at $92.22. The company’s current ratio is 1.90, the quick ratio is 1.09, and the debt-to-equity ratio is 1.75.

On October 30th, Beacon Roofing Supply released its quarterly earnings report, showing earnings per share of $2.80, which fell short of analysts' consensus estimate of $2.88 by $0.08. The company reported a return on equity of 25.64% and a net margin of 3.86%. In terms of revenue, Beacon Roofing Supply generated $2.77 billion for the quarter, slightly below the expected $2.78 billion. Analysts forecast that the company will achieve an EPS of 7.37 for the current year.

Insider Activity at Beacon Roofing Supply

Recently, there has also been some insider trading activity at Beacon Roofing Supply. On August 7th, CFO Prithvi Gandhi acquired 5,000 shares of the company at an average price of $82.29, totaling $411,450. Following this acquisition, he holds these shares valued at approximately the same amount. The transaction was reported in a filing with the Securities and Exchange Commission. Additionally, insider Jason L. Taylor sold 2,600 shares on October 7th, achieving an average sale price of $90.00, resulting in a total transaction value of $234,000. Post-sale, he retains 9,131 shares in the company, valued at around $821,790. Company insiders hold 1.30% of the company's shares.

Institutional Investors and Hedge Funds

Recent adjustments by institutional investors and hedge funds have been notable. For instance, US Bancorp DE increased its stake by 2.3% in the third quarter, now owning 5,255 shares worth $454,000 after acquiring 116 additional shares. Similarly, Vanguard Personalized Indexing Management LLC boosted its holdings by 2.7% in the second quarter, owning 5,538 shares valued at $501,000 after buying an extra 147 shares. Other funds like SummerHaven Investment Management LLC and QRG Capital Management Inc. have also made incremental increases to their positions. PNC Financial Services Group raised its stake by 145%, now owning 343 shares valued at $30,000. Overall, institutional investors and hedge funds own a significant 98.45% of Beacon Roofing Supply's stock.

About Beacon Roofing Supply

Beacon Roofing Supply, Inc. operates as a distributor of residential and non-residential roofing materials and complementary building products. Their product range caters to contractors, home builders, building owners, lumberyards, and retailers in both the United States and Canada. The company provides various roofing products, gutters, sidings, and building materials alongside insulation solutions and HVAC products.

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