Eagle Materials Inc (NYSE:EXP) Stock Now Rated "Reduce" by Wall Street Analysts

Key Points

• Wall Street analysts now rate Eagle Materials “Reduce”: Of 11 analysts, one recommends selling and 10 recommend holding. The average 12-month price target is $195.22, with several firms recently lowering their targets.
• Eagle Materials’ stock opened at $181.71, down from its 52-week high of $245.53. Its latest quarterly earnings per share of $3.29 missed estimates, although revenue rose 2.6% year over year to $650.97 million.
• Institutional investors own 96.07% of the company, while insiders own 1.70%; an Eagle Materials senior vice president recently sold 3,074 shares for approximately $627,000.

Eagle Materials Inc (NYSE:EXP - Get Free Report) has received a consensus rating of "Reduce" from the eleven brokerages that are currently covering the company, MarketBeat Ratings reports. One research analyst has rated the stock with a sell recommendation and ten have assigned a hold recommendation to the company. The average twelve-month price target among brokerages that have issued ratings on the stock in the last year is $195.22.

A number of research analysts have recently weighed in on the stock. Royal Bank Of Canada dropped their price objective on shares of Eagle Materials from $219.00 to $170.00 and set a "sector perform" rating for the company in a research note on Friday, October 9th. Citigroup reduced their target price on Eagle Materials from $232.00 to $190.00 and set a "neutral" rating on the stock in a research note on Friday, October 2nd. Stephens increased their target price on Eagle Materials from $225.00 to $230.00 and gave the company an "equal weight" rating in a report on Thursday, July 30th. JPMorgan Chase & Co. dropped their price target on Eagle Materials from $225.00 to $200.00 and set a "neutral" rating for the company in a research report on Tuesday, October 13th. Finally, Zacks Research cut Eagle Materials from a "hold" rating to a "strong sell" rating in a report on Friday, October 16th.

Insider Activity

In other Eagle Materials news, SVP Tony Thompson sold 3,074 shares of Eagle Materials stock in a transaction that occurred on Monday, August 24th. The shares were sold at an average price of $203.96, for a total value of $626,973.04. Following the completion of the sale, the senior vice president directly owned 10,142 shares of the company's stock, valued at approximately $2,068,562.32. The trade was a 23.26% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Insiders own 1.70% of the company's stock.

Institutional Investors Weigh In On Eagle Materials

A number of hedge funds and other institutional investors have recently made changes to their positions in the business. BlackRock Inc. purchased a new position in shares of Eagle Materials in the 2nd quarter worth about $688,486,000. W1M Asset Management Ltd purchased a new stake in shares of Eagle Materials during the 2nd quarter worth about $155,199,000. William Blair Investment Management LLC purchased a new stake in shares of Eagle Materials during the 2nd quarter worth about $129,760,000. Bank of America Corp DE acquired a new stake in Eagle Materials during the 2nd quarter worth approximately $66,255,000. Finally, Bank of New York Mellon Corp acquired a new stake in Eagle Materials during the 2nd quarter worth approximately $51,858,000. Hedge funds and other institutional investors own 96.07% of the company's stock.

Eagle Materials Price Performance

Eagle Materials stock opened at $181.71 on Friday. The firm has a market capitalization of $5.57 billion, a PE ratio of 14.36 and a beta of 1.33. Eagle Materials has a 52 week low of $160.02 and a 52 week high of $245.53. The firm's 50-day simple moving average is $180.62 and its 200 day simple moving average is $203.05. The company has a quick ratio of 1.91, a current ratio of 3.23 and a debt-to-equity ratio of 1.17.

Eagle Materials (NYSE:EXP - Get Free Report) last posted its earnings results on Wednesday, July 29th. The construction company reported $3.29 earnings per share for the quarter, missing the consensus estimate of $3.37 by ($0.08). Eagle Materials had a net margin of 17.32% and a return on equity of 26.87%. The business had revenue of $650.97 million for the quarter, compared to analysts' expectations of $620.35 million. During the same quarter last year, the business posted $3.76 earnings per share. The business's revenue was up 2.6% compared to the same quarter last year. On average, equities research analysts predict that Eagle Materials will post 11.92 EPS for the current fiscal year.

Eagle Materials Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, October 13th. Stockholders of record on Monday, September 14th were given a $0.25 dividend. This represents a $1.00 dividend on an annualized basis and a dividend yield of 0.6%. The ex-dividend date of this dividend was Monday, September 14th. Eagle Materials's payout ratio is currently 7.91%.

About Eagle Materials

Eagle Materials Inc NYSE: EXP is a U.S.-based manufacturer of building materials used in residential, commercial, infrastructure and industrial construction. The company's principal products include cement, gypsum wallboard, concrete and aggregates.

Its cement business produces and distributes Portland cement and related cement products, while its gypsum wallboard business supplies panels used in interior construction. Eagle Materials also provides ready-mixed concrete and construction aggregates, including crushed stone, sand and gravel, for building and infrastructure projects.

The company traces its history to Centex Construction Products, which was spun off from Centex Corporation in 1994 and later adopted the Eagle Materials name.

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