Core & Main (NYSE:CNM) Rating Lowered to Strong Sell at Zacks Research

Key Points

• Zacks Research downgraded Core & Main from “hold” to “strong sell,” despite the broader analyst consensus remaining “Moderate Buy” with an average price target of $55.64.
• Core & Main shares opened at $41.04, near their 12-month low of $40.03, after the company reported quarterly EPS of $0.94 and revenue of $2.15 billion, modestly exceeding analyst estimates.
• Institutional investors own 94.19% of the stock, while director James Hope recently increased his holdings by purchasing 2,067 shares at an average price of $46.01.

Core & Main (NYSE:CNM - Get Free Report) was downgraded by investment analysts at Zacks Research from a "hold" rating to a "strong sell" rating in a note issued to investors on Monday, Zacks reports.

A number of other analysts have also recently commented on CNM. Truist Financial lowered their price target on Core & Main from $50.00 to $45.00 and set a "hold" rating for the company in a research report on Thursday, September 10th. Northcoast Research downgraded Core & Main from a "buy" rating to a "neutral" rating in a report on Wednesday, August 26th. Wolfe Research reiterated an "outperform" rating and issued a $63.00 target price on shares of Core & Main in a research report on Tuesday. Wells Fargo & Company cut their price target on shares of Core & Main from $65.00 to $48.00 and set an "overweight" rating on the stock in a report on Thursday, September 10th. Finally, Robert W. Baird reduced their price target on shares of Core & Main from $66.00 to $57.00 and set an "outperform" rating for the company in a research report on Thursday, September 10th. Eight research analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average target price of $55.64.

Core & Main Stock Up 0.6%

NYSE:CNM opened at $41.04 on Monday. The company has a market cap of $7.94 billion, a PE ratio of 16.89, a P/E/G ratio of 1.71 and a beta of 0.91. Core & Main has a twelve month low of $40.03 and a twelve month high of $59.66. The company has a current ratio of 2.47, a quick ratio of 1.51 and a debt-to-equity ratio of 1.16. The company's 50 day moving average is $44.28 and its two-hundred day moving average is $47.58.

Core & Main (NYSE:CNM - Get Free Report) last issued its quarterly earnings results on Wednesday, September 9th. The company reported $0.94 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.91 by $0.03. Core & Main had a net margin of 5.96% and a return on equity of 25.98%. The business had revenue of $2.15 billion for the quarter, compared to analyst estimates of $2.14 billion. During the same quarter in the prior year, the business posted $0.87 EPS. Core & Main's revenue for the quarter was up 2.5% compared to the same quarter last year. Analysts anticipate that Core & Main will post 3 EPS for the current year.

Insider Transactions at Core & Main

In related news, Director James Hope purchased 2,067 shares of the firm's stock in a transaction on Monday, July 6th. The stock was bought at an average cost of $46.01 per share, with a total value of $95,102.67. Following the completion of the acquisition, the director owned 11,805 shares of the company's stock, valued at $543,148.05. The trade was a 21.23% increase in their position. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Insiders own 1.51% of the company's stock.

Hedge Funds Weigh In On Core & Main

Several institutional investors have recently made changes to their positions in CNM. Capital World Investors boosted its holdings in Core & Main by 5.8% during the fourth quarter. Capital World Investors now owns 6,292,740 shares of the company's stock worth $327,034,000 after buying an additional 344,606 shares in the last quarter. First Trust Advisors LP increased its holdings in Core & Main by 15.3% in the first quarter. First Trust Advisors LP now owns 6,130,840 shares of the company's stock valued at $302,863,000 after buying an additional 812,770 shares in the last quarter. Royal London Asset Management Ltd. raised its position in shares of Core & Main by 12.5% in the fourth quarter. Royal London Asset Management Ltd. now owns 5,688,595 shares of the company's stock worth $295,636,000 after acquiring an additional 632,077 shares during the period. Geode Capital Management LLC raised its position in shares of Core & Main by 2.4% in the fourth quarter. Geode Capital Management LLC now owns 3,645,108 shares of the company's stock worth $189,474,000 after acquiring an additional 84,657 shares during the period. Finally, KBC Group NV boosted its stake in shares of Core & Main by 4.5% during the 1st quarter. KBC Group NV now owns 2,737,992 shares of the company's stock worth $135,257,000 after acquiring an additional 119,076 shares in the last quarter. 94.19% of the stock is owned by hedge funds and other institutional investors.

Core & Main Company Profile

Core & Main, Inc NYSE: CNM is a specialized distributor of water, wastewater, storm drainage and fire protection products in the United States. The company supplies infrastructure materials used in the construction, maintenance and repair of public and private utility systems.

Its product offerings include ductile iron and PVC pipe, valves, hydrants, water meters, storm drainage systems, pipe fittings, fire protection equipment and related products. Core & Main also provides services such as product sourcing, technical support, fabrication, field assistance and inventory management to help customers complete infrastructure projects.

Core & Main serves municipalities, utility contractors, water and wastewater authorities, private water companies, civil and site-development contractors, and other industrial customers through a nationwide distribution network.

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