Royal Bank of Canada Upgrades Beacon Roofing Supply Stock Price Target

Beacon Roofing Supply (NASDAQ:BECN) received an encouraging update from Royal Bank of Canada, which increased its price target from $113.00 to $114.00. This adjustment was communicated in a research note provided to investors on Friday. With this change, Royal Bank of Canada has assigned an "outperform" rating to the stock, indicating that they expect it to perform better than the market average. Based on the latest price target, there is a potential upside of approximately 21.30% from the stock's current trading price.

In addition to Royal Bank of Canada's insights, other analysts have also shared their perspectives on Beacon Roofing Supply. For instance, Robert W. Baird recently raised their price target from $115.00 to $120.00, maintaining an "outperform" rating in a report released on October 16th. Conversely, Stephens adjusted their forecast, lowering their price target from $107.00 to $95.00 and rated the stock as "equal weight" in a note on August 5th. Meanwhile, Benchmark continues to hold a "buy" rating and set a price target at $140.00 for the shares. Overall, out of the research surveyed, three analysts have rated Beacon Roofing Supply as a hold, while eight analysts have given it a buy rating. According to MarketBeat.com, the consensus rating for the company is categorized as "Moderate Buy," with an average target price of $115.00.

Beacon Roofing Supply Stock Performance

On Friday, shares of Beacon Roofing Supply experienced an increase, rising by $1.91 to reach $93.98 during mid-day trading. The trading volume for the day was 237,348 shares compared to the average volume of 711,443 shares. The company's market capitalization stands at $5.81 billion, with a price-to-earnings ratio of 16.00 and a beta of 1.55. Looking at its liquidity ratios, Beacon Roofing Supply has a quick ratio of 1.09 and a current ratio of 1.90, alongside a debt-to-equity ratio of 1.75. In terms of performance over the past year, the stock hit a low of $71.48 and a high of $105.42. The 50-day simple moving average is $88.91, while the 200-day simple moving average stands at $92.22.

Recently, the company published its earnings results for the third quarter on October 30th. Beacon Roofing Supply reported earnings per share (EPS) of $2.80, falling short of the consensus estimate of $2.88 by $0.08. Their revenue for the quarter was $2.77 billion, slightly below analysts' expectations of $2.78 billion. The company achieved a return on equity of 25.64% and recorded a net margin of 3.86%. Sell-side analysts project that the firm could post an EPS of 7.37 for the current fiscal year.

Insider Transactions

In recent insider trading activity, Chief Financial Officer Prithvi Gandhi purchased 5,000 shares of Beacon Roofing Supply on August 7th at an average price of $82.29 per share, totaling an investment of $411,450. Following this acquisition, Gandhi now holds a total of 5,000 shares valued at approximately $411,450. The transaction was publicly disclosed in a filing with the Securities and Exchange Commission (SEC). Additionally, insider Jason L. Taylor sold 2,600 shares on October 7th for an average price of $90.00, bringing in $234,000 from the sale. After this transaction, Taylor continues to own 9,131 shares, valued at around $821,790. Currently, company insiders hold about 1.30% of the stock.

Institutional Investor Trends

Recently, institutional investors have shown interest in adjusting their stakes in Beacon Roofing Supply. Allspring Global Investments Holdings LLC acquired a new position in the first quarter, investing roughly $26,000. Blue Trust Inc. increased its stake in the company by 222.1% in the third quarter, now owning 306 shares valued at $28,000 after purchasing an extra 211 shares. PNC Financial Services Group Inc. also raised its stake by 145.0%, now possessing 343 shares valued at $30,000. Furthermore, GAMMA Investing LLC expanded its holdings in Beacon Roofing Supply by 154.0%, bringing their total to 734 shares worth $63,000. Most notably, 98.45% of Beacon Roofing Supply’s stock is owned by institutional investors and hedge funds.

About Beacon Roofing Supply

Beacon Roofing Supply, Inc. operates as a distributor of residential and non-residential roofing materials along with complementary building products in the United States and Canada. The company provides a variety of products, including pitched roofing and low slope roof products, gutters, sidings, and essential building materials such as lumber, plywood, HVAC products, commercial insulation items, and insulation solutions.

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