SG Americas Securities LLC, a well-known institutional investor, has increased its stake in Eagle Materials Inc., a NYSE-listed construction company, by nearly 97% during the fourth quarter. According to SG America Securities’ latest disclosure with the US Securities and Exchange Commission (SEC), it now owns over 15,000 shares of the company’s stock with an estimated value of $2.02 million after acquiring an additional 7,498 shares last year. The move is seen as a bullish sign for Eagle Materials and underscores the growing confidence among investors about its future growth prospects.
Several brokerage firms have recently commented on Eagle Materials. Raymond James raised their target price on Eagle Materials from $140.00 to $152.00 and gave the company an “outperform” rating in a research note on Wednesday, January 25th. Citigroup also boosted their price target on shares of Eagle from $138.00 to $168.00 in a research report on Tuesday of January 10th. Meanwhile, Loop Capital boosted their price target on the company from $145.00 to $160.00 while giving it a “hold” rating in a research report that same Friday.
The Goldman Sachs Group also upped its target price on shares of Eagle Materials from $130.00 to $149.00 and gave the stock a “buy” rating in its own research report published towards the end of January this year. Similarly, StockNews.com began coverage on shares of Eagle Materials earlier this March and issued a “buy” recommendation for the company.
According to Bloomberg data, three equities research analysts have rated Eagle Material’s stocks as ‘hold’ while six others have given them a ‘buy’ rating resulting in an overall consensus evaluation known as ‘Moderate Buy.’ The average price target for Eagle is currently set at approximately $153 per share although some brokerage houses are even more bullish than that even projecting potential valuations of $168 per share.
Eagle Materials shares opened at $147.23 on Tuesday with a market capitalization of $5.31 billion, a price-to-earnings ratio of 12.73 as well as a beta factor of 1.31. Moreover, the company’s current quick ratio stands at 1:17 and its current ratio is now around 2:36, with an average debt to equity ratio in the past year of 0.90 which suggests that it has ample liquidity to fund ongoing operations and capital projects.
All these developments form part of a positive outlook for Eagle Materials ahead, with investor confidence remaining high despite challenging global economic conditions caused by the pandemic. As construction activity gradually increases in many cities across America amid low-interest rates coupled with robust housing demand, we may see even greater enthusiasm from investors looking towards fresh growth opportunities in the building materials sector over the coming quarters.
Eagle Materials Inc. Reports Impressive First Quarter Earnings and Continues to Garner Institutional Interest in Growth Potential
Eagle Materials Inc. (NYSE:EXP) continues to make waves in the construction industry as it reported an outstanding first quarter showing a sharp increase in earnings per share compared with last year. In recent months, several institutional investors and hedge funds have bought shares of the stock, indicating continual interest in Eagle Material’s growth potential. Quadrant Capital Group LLC grew its position in shares of Eagle Materials by 157.3% during the third quarter while IFP Advisors Inc increased their stake by 42.4% during the same period, adding significantly to their already sizable holdings at Eagle Materials.
Fifth Third Bancorp and Wipfli Financial Advisors also raised their positions by 23.6% and acquired a new stake, respectively. Adding to these bullish sentiments are several brokerages who have recently praised EXP for its impressive target price, sound fundamentals and robust dividends. Raymond James gave the company an ‘outperform’ rating while Citigroup boosted its price target from $138 to $168 earlier this year.
The most impressive aspect of EXP’s earning report is that it has managed to deliver higher than estimated earnings despite facing revenue headwinds due to seasonal weather trends that hampered construction projects across North America during Q1 2017. The company still managed to post earnings per share of $3.20 for the quarter, which overshadows the previously estimated figure of $3.19 representing a growth rate of about 26%.
Company insiders such as CEO Michael Haack and CFO Dale Craig Kesler have also been selling large amounts of EXP stock which has created a stir among analysts but doesn’t detract from the overall positive outlook on Eagle Material’s future growth prospects within the construction industry.
Eagle Material’s industrial paper business segments will be closely monitored going forward since many investors see these areas as key drivers of future performance for almost all global economies in which they operate. Speaking on behalf of Eagle Materials, Chairman and chief executive officer David Powers acknowledged the company’s successful financial reporting, saying that “the team was very pleased with strong first quarter results… creating a solid foundation for another successful year.”
With Eagle Materials’ expected growth potential, coupled with steady institutional investment in the stock and a dividend yield strategy to keep investors happy, many industry experts see significant earnings growth for this construction materials major in the years ahead.
