Analysts: Beacon Roofing Supply, Inc. (BECN) Shares Now Offer 4.52% Upside Potential

It has been reported that multiple insider activity took place at Beacon Roofing Supply, Inc. (BECN). 10% Owner CD&R Investment Associates IX, acquired 5,609,763 shares for $5,924,163 in transaction occurred on 2019/03/14. After making this transaction, 10% Owner owns a direct stake of 15 shares, worth $227,000,000, as per the last closing price. On 2018/11/26 BERQUIST CARL T, Director at BECN, purchased 5,000 shares at an average price of $33.05 per share. The new stake is valued at $382,700.

Director, FROST RICHARD W had invested in 10,675 shares for $22,495 through a trade on 2018/11/21. Following this activity, the insider holds 21 shares worth $860,884 as of recent close.

Vanguard Small-Cap Index Fund revealed as top hedge fund owner in Beacon Roofing Supply, Inc. (BECN) with a stake of over 1.74M BECN shares as of September 29, with a market value of approx. $62.96M as of today. The second largest holder, Vanguard Total Stock Market Index Fund, with 1.72M shares which equates to $62.09M worth of the stock. At third is Undiscovered Managers Behavioral Value Fund, which stood pat with 1.57M shares, a 1.91% position in Beacon Roofing Supply, Inc., worth $50.61M. The insider holding in stood at 0.6% while institutions hold 0%.

Beacon Roofing Supply, Inc. (NASDAQ:BECN) rose 1.32% in recent trade and currently has a stock-market value of $2.65B. The shares finished at $38.27, after trading as low as $37.64 earlier in the session. It hit an intraday high Tuesday at $38.37. Trading activity significantly improved as the volume at ready counter increased to 788,763 shares versus 650,690 in average daily trading volume over the past 20 days. So far this year, the volume has averaged about 784,029 shares. The stock is now 53.26% above against its bear-market low of $24.97 on October 30, 2018. It has retreated -20.88% since it’s 52-week high of $46.26 reached in June. Now the market price is down -9.4% on the year and up 20.65% YTD.

BECN stock’s 50 day simple moving average (SMA 50) price is $35.83 and its 200-day simple moving average (SMA 200) price is $34.9. The company’s stock currently has a total float of 62.06M shares. Its weekly volatility is hovering around 3.64% and felt 2.96% volatility in price over a month. On the upside, the share price will test short term resistance at around $38.55. On a downside, the stock is likely to find some support, which begins at $37.82. The failure to get near-term support could push it to $37.36.

It had seen a new analyst call from Buckingham Research, which initiated the stock at Neutral on February 25. Analysts at Wedbush, shed their positive views on December 14 by lowering it fromOutperform to Neutral. The stock lost favor of Longbow analysts who expressed their lack of confidence in it using a downgrade from Buy to Neutral on November 28. Wells Fargo analysts came out with bullish views on November 21 when the call was made. They think the stock is now Market Perform compared to to their prior call for Underperform.

When looking at valuations, Beacon Roofing Supply, Inc. (BECN) has a pricey P/E of 1034.32x as compared to industry average of 23.02x. Moreover, it trades for 11.3 times the next 12 months of expected earnings. Also, it is trading at rather expensive levels at just over 1.39x price/book and 0.38x price/sales. Compared to others, Beacon Roofing Supply, Inc. is in a different league with regards to profitability, having net margins of 0.1%. To put some perspective around this, the industry’s average net margin is 5.06%. BECN’s ROE is 0.3%, which is also considerably worse than the industry’s ROE of 9.25%. It’s also very liquid in the near term, with a current ratio of 2.4. The stock has a debt/capital of 1.62.

Shares of BECN have gained 0.4% since the company’s most recent earnings report. Over the past 12 fiscal quarters, Beacon Roofing Supply, Inc. (NASDAQ:BECN) has topped consensus earnings estimates in 5 quarters (41%), missed earnings in 6 quarters (50%), whereas at 1 occasion EPS met analyst expectations. BECN last reported earnings that exceeded expectations. The company raked in -$0.45 per share, -96.05% change on the same period last year. That was better than consensus for -$0.51. Revenue for the recent quarter stood at $1.43 billion, down 0% on last year and above the $1.38 billion predicted by analysts. For this quarter, Wall Street analysts forecast revenue in a range of $1.25 billion to $1.44 billion, which should be compared with $0 generated last year. EPS is seen in a range of -$0.55 to -$0.46, against the 0 reported a year ago.