FirstService Corporation (NASDAQ:FSV) Shares Decline 4.9% – Should Investors Consider Selling?

FirstService Corporation (NASDAQ:FSV) experienced a decline of 4.9% in its stock price during trading on Wednesday. The shares reached a low of $173.95 before closing at $172.80. Approximately 54,261 shares were exchanged during the day, reflecting a significant drop of 54% compared to the average daily trading volume of 117,762 shares. Prior to this decline, the stock had closed at $181.65.

Analysts Project Positive Growth for FirstService

In light of the recent stock performance, several analysts have shared their perspectives on FirstService. Stifel Nicolaus raised their price target for the company from $200.00 to $215.00, maintaining a "buy" recommendation in a research note dated October 21st. Similarly, StockNews.com upgraded FirstService shares from a "hold" to a "buy" rating in their analysis released on October 25th. Scotiabank also shared an optimistic outlook, increasing their price objective from $190.00 to $200.00, with a "sector perform" rating on October 15th. Raymond James escalated their target price for FirstService from $215.00 to $225.00, emphasizing an "outperform" rating in their report on January 30th. Additionally, TD Securities raised their price target from $179.00 to $182.00 and provided a "hold" rating in their analysis dated October 17th. Overall, two analysts have recommended holding the stock while five analysts advocate for buying it. MarketBeat.com indicates that the stock holds an average rating of "Moderate Buy" along with a consensus target price established at $201.67.

Examining FirstService's Stock Performance

FirstService's stock performance is illustrated by its current fifty-day moving average of $184.60 and a two-hundred-day moving average of $181.91. The company's market capitalization stands at $7.85 billion, with a price-to-earnings (P/E) ratio of 72.25 and a beta of 1.06. Financial ratios indicate a quick ratio of 1.79 and a current ratio of 1.79, alongside a debt-to-equity ratio of 1.13.

FirstService Increases Dividend Payments

Recently, FirstService announced an increase in its quarterly dividend, which is set to be paid out on May 7th. Investors on record as of March 31st will receive a dividend of $0.275 per share, marking an increase from the previous dividend of $0.25. Annually, this represents a total dividend of $1.10 with a yield of 0.63%. The company maintains a dividend payout ratio of 41.67%.

Institutional Investments in FirstService

Recent activity in FirstService shares has been notable among institutional investors. Conestoga Capital Advisors LLC increased its holdings in the company by 1.6% in the third quarter, now owning 1,449,933 shares valued at approximately $264,555,000 after acquiring an additional 23,082 shares. Franklin Resources Inc. made a significant move by expanding its stake by 486.3% during the same period, holding 469,141 shares worth around $87,308,000 after an additional purchase of 389,129 shares. CIBC Asset Management Inc. similarly grew its holding by 57.4% in the fourth quarter, now possessing 457,735 shares valued at $83,138,000 after acquiring 166,996 shares. Bank of Montreal Can raised its stake by 19.7%, owning 388,430 shares valued at approximately $69,992,000 after purchasing an additional 63,807 shares. Lastly, Fiera Capital Corp increased its shares by 24.1%, now holding 258,848 shares valued at about $46,839,000. Institutional investors collectively represent 69.35% of FirstService's stock ownership.

Understanding the FirstService Business Model

FirstService Corporation, along with its subsidiaries, offers crucial property management services to both residential and commercial clients across the United States and Canada. The company operates through two primary segments: FirstService Residential and FirstService Brands. The FirstService Residential division provides services tailored to private residential communities, including condominiums, cooperatives, homeowners' associations, master-planned communities, active adult and lifestyle communities, and various other residential projects.

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