Royal Bank of Canada Raises Price Target for Beacon Roofing Supply Stock

The Royal Bank of Canada has recently updated its price target on shares of Beacon Roofing Supply (NASDAQ:BECN). In a research note released on Friday, the bank increased its target from $113.00 to $114.00. This adjustment indicates a belief in the company's strong performance, and they have assigned an "outperform" rating to the stock. This new price target suggests a potential upside of approximately 21.30% from the stock's current value, attracting the attention of investors.

Additionally, other analysts have recently shared their insights on Beacon Roofing Supply. For instance, Robert W. Baird also increased its target price on Beacon, raising it from $115.00 to $120.00, accompanied by an "outperform" rating. Conversely, Stephens lowered its price target from $107.00 to $95.00 while maintaining an "equal weight" rating. Moreover, Benchmark reiterated its "buy" rating and set a price target of $140.00. Currently, the consensus among analysts reflects three hold ratings and eight buy ratings, resulting in a general consensus rating of "Moderate Buy" and an average target price of $115.00 according to MarketBeat.com.

Stock Performance Overview

On Friday, shares of Beacon Roofing Supply enjoyed a slight increase of $1.91, bringing the stock price to $93.98 during midday trading. A total of 237,348 shares changed hands, which is lower than the average trading volume of 711,443 shares. Beacon Roofing Supply's market capitalization stands at approximately $5.81 billion, and its current price-to-earnings ratio is 16.00. The company has also reported a beta of 1.55, highlighting its relative volatility in the market.

Beacon Roofing Supply's financial ratios reveal a quick ratio of 1.09, a current ratio of 1.90, and a debt-to-equity ratio of 1.75. Over the past year, the stock has seen a 52-week low of $71.48 and a high of $105.42. Its moving averages show a 50-day simple moving average of $88.91 and a 200-day simple moving average of $92.22.

Recent Earnings Report

The company recently announced its earnings results on October 30th, reporting an earnings per share (EPS) of $2.80 for the quarter. This was slightly below analysts' consensus estimate of $2.88, falling short by $0.08. For the quarter, Beacon Roofing Supply recorded revenues of $2.77 billion, which also came short of the expected $2.78 billion. The company achieved a return on equity of 25.64% and a net profit margin of 3.86%. Analysts predict that Beacon Roofing Supply will post an EPS of 7.37 for the ongoing fiscal year.

Insider Activity

In legislative news, Confidant Financial Officer Prithvi Gandhi purchased 5,000 shares of Beacon Roofing Supply stock on August 7th at an average price of $82.29 per share, amounting to a total investment of $411,450. Following this transaction, Gandhi now personally owns a total of 5,000 shares valued at approximately $411,450. Disclosure of this transaction has been made publicly available through filings with the relevant securities authority.

Additionally, insider Jason L. Taylor executed a sale of 2,600 shares on October 7th, at an average price of $90.00, bringing the total transaction value to $234,000. Following this sale, Taylor holds 9,131 shares of the stock, worth around $821,790, indicating a negligible reduction in their ownership percentage. Presently, insiders own about 1.30% of the company's total shares.

Institutional Investor Involvement

Institutional investors have also been actively adjusting their stakes in Beacon Roofing Supply recently. Allspring Global Investments Holdings LLC made a new investment in the stock worth roughly $26,000 during the first quarter. Blue Trust Inc. significantly increased its position by 222.1% in the third quarter, resulting in ownership of 306 shares valued at $28,000 after purchasing an additional 211 shares. PNC Financial Services Group Inc. also raised its holdings by 145.0% in the fourth quarter, giving it ownership of 343 shares worth $30,000.

Other notable increases include GAMMA Investing LLC, which boosted its stake by 154.0% in the third quarter, owning 734 shares valued at $63,000 after adding 445 shares. Meanwhile, Plato Investment Management Ltd. lifted its share ownership by 140.3% in the first quarter, now holding 1,110 shares valued at $109,000. Collectively, institutional investors and hedge funds own approximately 98.45% of Beacon Roofing Supply's stock.

About Beacon Roofing Supply

Beacon Roofing Supply, Inc., through its subsidiaries, specializes in distributing roofing materials for both residential and commercial sectors, along with a diverse range of complementary building products. They cater to contractors, home builders, lumberyards, and retailers throughout the United States and Canada. Their product offerings include pitched and low slope roofing products, gutters, sidings, as well as various building materials such as lumber, insulation materials, and HVAC products.

Beacon, Stock, Royal