James Hardie Industries (NYSE:JHX) Cut to Strong Sell at Zacks Research

Key Points

• Zacks Research downgraded James Hardie Industries to “strong sell” from “hold,” despite most analysts maintaining positive views. The stock has a consensus “Moderate Buy” rating and an average price target of $34.11.
• JHX opened at $24.56, below its 50-day moving average of $28.22, while trading at a high P/E ratio of 98.24. Its one-year trading range is $16.46 to $31.43.
• The company exceeded quarterly expectations, reporting $0.36 in EPS versus a $0.32 estimate and revenue of $1.47 billion versus $1.42 billion expected; revenue increased 63.9% year over year.

James Hardie Industries (NYSE:JHX - Get Free Report) was downgraded by stock analysts at Zacks Research from a "hold" rating to a "strong sell" rating in a report released on Tuesday, Zacks reports.

A number of other equities research analysts have also issued reports on JHX. Truist Financial boosted their target price on James Hardie Industries from $30.00 to $40.00 and gave the stock a "buy" rating in a research report on Friday, August 7th. Stephens lifted their price target on James Hardie Industries from $33.00 to $34.00 and gave the stock an "overweight" rating in a research note on Friday, August 7th. UBS Group reissued a "buy" rating on shares of James Hardie Industries in a research note on Wednesday, September 16th. Loop Capital assumed coverage on James Hardie Industries in a report on Monday, September 14th. They set a "buy" rating and a $35.00 price objective on the stock. Finally, Oppenheimer reaffirmed an "outperform" rating and set a $36.00 price objective on shares of James Hardie Industries in a research note on Wednesday, September 16th. Ten investment analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, James Hardie Industries presently has an average rating of "Moderate Buy" and a consensus price target of $34.11.

James Hardie Industries Price Performance

NYSE JHX opened at $24.56 on Tuesday. The stock has a market capitalization of $14.25 billion, a P/E ratio of 98.24, a P/E/G ratio of 2.50 and a beta of 1.79. James Hardie Industries has a 1 year low of $16.46 and a 1 year high of $31.43. The business's fifty day moving average is $28.22 and its two-hundred day moving average is $24.55. The company has a debt-to-equity ratio of 0.66, a quick ratio of 1.03 and a current ratio of 1.59.

James Hardie Industries (NYSE:JHX - Get Free Report) last announced its quarterly earnings data on Thursday, August 6th. The construction company reported $0.36 EPS for the quarter, beating analysts' consensus estimates of $0.32 by $0.04. The company had revenue of $1.47 billion during the quarter, compared to the consensus estimate of $1.42 billion. James Hardie Industries had a return on equity of 10.56% and a net margin of 2.69%.The company's quarterly revenue was up 63.9% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $0.29 EPS. On average, research 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

Several large investors have recently made changes to their positions in the company. Squarepoint Ops LLC acquired a new position in shares of James Hardie Industries during the second quarter valued at about $47,651,000. Renaissance Technologies LLC grew its position 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 worth $72,720,000 after buying an additional 1,254,400 shares in the last quarter. Alyeska Investment Group L.P. increased its stake in James Hardie Industries by 12.3% during the second quarter. Alyeska Investment Group L.P. now owns 8,737,905 shares of the construction company's stock valued at $228,758,000 after acquiring an additional 954,317 shares during the period. Senator Investment Group LP increased its stake in James Hardie Industries by 99.8% during the fourth quarter. Senator Investment Group LP now owns 1,825,797 shares of the construction company's stock valued at $37,885,000 after acquiring an additional 911,860 shares during the period. Finally, RDST Capital LLC raised its holdings in James Hardie Industries by 24.0% in the 2nd quarter. RDST Capital LLC now owns 4,015,067 shares of the construction company's stock valued at $105,114,000 after acquiring an additional 776,950 shares in the last quarter. Institutional investors own 7.96% of the company's stock.

James Hardie Industries Company Profile

James Hardie Industries plc is a building materials company that manufactures and markets fiber cement and fiber gypsum products. Its products are used primarily in residential and commercial construction, including exterior siding, trim, soffits, backer board, and interior wall and flooring applications.

The company sells products under brands that include Hardie, HardiePlank, HardiePanel, and HardieBacker. Its fiber cement products are designed to provide durability and resistance to moisture, fire, pests, and weathering, serving builders, contractors, architects, and homeowners.

James Hardie traces its origins to Australia in the late 19th century and has since expanded into an international building products company.

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