James Hardie Industries (NYSE:JHX) Cut to Neutral at Citigroup

Key Points

• Citigroup downgraded James Hardie Industries from “buy” to “neutral,” although the broader analyst consensus remains “Moderate Buy,” with 10 buy ratings, three holds, and an average price target of $32.78.
• JHX shares opened at $26.11, below their 50-day moving average of $28.33 but above their 200-day average of $24.26; the stock has traded between $16.46 and $31.43 over the past year.
• The company exceeded quarterly expectations, reporting $0.36 EPS versus $0.32 expected and $1.47 billion in revenue, up 63.9% year over year. Institutional investors collectively own 7.96% of the stock, with several major funds increasing their positions.

James Hardie Industries (NYSE:JHX - Get Free Report) was downgraded by research analysts at Citigroup from a "buy" rating to a "neutral" rating in a note issued to investors on Monday, Marketbeat Ratings reports.

JHX has been the topic of several other reports. UBS Group reiterated a "buy" rating on shares of James Hardie Industries in a research report on Wednesday, September 16th. Loop Capital initiated coverage on James Hardie Industries in a research note on Monday, September 14th. They set a "buy" rating and a $35.00 target price for the company. Barclays raised James Hardie Industries from an "equal weight" rating to an "overweight" rating and lifted their target price for the stock from $26.00 to $35.00 in a report on Monday, August 10th. Stephens upped their price target on shares of James Hardie Industries from $33.00 to $34.00 and gave the company an "overweight" rating in a report on Friday, August 7th. Finally, Zacks Research upgraded shares of James Hardie Industries from a "strong sell" rating to a "hold" rating in a research report on Monday, July 13th. Ten investment analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. According to data from MarketBeat, James Hardie Industries currently has an average rating of "Moderate Buy" and an average price target of $32.78.

James Hardie Industries Stock Up 0.0%

JHX stock opened at $26.11 on Monday. The firm's 50-day moving average is $28.33 and its two-hundred day moving average is $24.26. The company has a market capitalization of $15.15 billion, a price-to-earnings ratio of 104.43, a price-to-earnings-growth ratio of 2.55 and a beta of 1.77. James Hardie Industries has a 52 week low of $16.46 and a 52 week high of $31.43. The company has a current ratio of 1.59, a quick ratio of 1.03 and a debt-to-equity ratio of 0.66.

James Hardie Industries (NYSE:JHX - Get Free Report) last posted its quarterly earnings data on Thursday, August 6th. The construction company reported $0.36 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.32 by $0.04. James Hardie Industries had a net margin of 2.69% and a return on equity of 10.56%. The business had revenue of $1.47 billion during the quarter, compared to analysts' expectations of $1.42 billion. During the same period last year, the firm posted $0.29 earnings per share. The business's revenue was up 63.9% on a year-over-year basis. On average, analysts forecast that James Hardie Industries will post 1.24 earnings per share for the current fiscal year.

Institutional Investors Weigh In On James Hardie Industries

A number of institutional investors and hedge funds have recently modified their holdings of JHX. Alyeska Investment Group L.P. boosted its position in shares of James Hardie Industries by 12.3% in the 2nd quarter. Alyeska Investment Group L.P. now owns 8,737,905 shares of the construction company's stock valued at $228,758,000 after purchasing an additional 954,317 shares during the period. Hill City Capital LP raised its holdings in James Hardie Industries by 1.8% during the 2nd quarter. Hill City Capital LP now owns 5,723,900 shares of the construction company's stock worth $149,852,000 after buying an additional 102,200 shares during the period. RDST Capital LLC lifted its stake in James Hardie Industries by 24.0% during the second quarter. RDST Capital LLC now owns 4,015,067 shares of the construction company's stock valued at $105,114,000 after buying an additional 776,950 shares in the last quarter. Renaissance Technologies LLC lifted its stake in James Hardie Industries by 48.5% during the first quarter. Renaissance Technologies LLC now owns 3,839,489 shares of the construction company's stock valued at $72,720,000 after buying an additional 1,254,400 shares in the last quarter. Finally, Jones Financial Companies Lllp boosted its holdings in shares of James Hardie Industries by 22.5% in the second quarter. Jones Financial Companies Lllp now owns 2,166,998 shares of the construction company's stock worth $57,707,000 after buying an additional 397,621 shares during the period. 7.96% of the stock is owned by institutional investors and hedge funds.

James Hardie Industries Company Profile

James Hardie Industries plc is a building materials company specializing in fiber cement and fiber gypsum products. Its products are used in residential and commercial construction, remodeling and repair applications, including exterior siding, trim, soffits, weatherboard, roofing components and interior wall systems.

The company markets products under brands that include Hardie and Fermacell. Its fiber cement materials are designed to provide durability and resistance to fire, moisture, pests and weather, serving applications where alternatives such as wood, vinyl or traditional gypsum may be used.

Founded in Australia in 1888, James Hardie has developed into an international manufacturer and supplier serving customers across North America, Australia and New Zealand, Europe and other markets.

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