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

Key Points

• Core & Main's stock has been downgraded from a "hold" rating to a "strong sell" rating by Zacks Research.
• Multiple analysts have also cut their target prices for Core & Main, with Citigroup reducing theirs from $62.00 to $54.00 and Wells Fargo from $70.00 to $58.00.
• Despite the downgrade, Core & Main reported $0.87 earnings per share for the last quarter, exceeding analysts' expectations of $0.79, though revenue was slightly below estimates.

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

Other equities research analysts also recently issued reports about the company. Citigroup lowered their target price on Core & Main from $62.00 to $54.00 and set a "neutral" rating for the company in a report on Wednesday, September 10th. Loop Capital reiterated a "hold" rating and issued a $68.00 target price on shares of Core & Main in a report on Monday, July 28th. Wells Fargo & Company lowered their target price on Core & Main from $70.00 to $58.00 and set an "overweight" rating for the company in a report on Wednesday, September 10th. Barclays lowered their target price on Core & Main from $69.00 to $65.00 and set an "overweight" rating for the company in a report on Wednesday, September 10th. Finally, JPMorgan Chase & Co. lowered their target price on Core & Main from $64.00 to $54.00 and set an "overweight" rating for the company in a report on Wednesday, September 10th. One equities research analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating, four have assigned a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $60.09.

Core & Main Stock Up 0.4%

Core & Main stock opened at $53.85 on Monday. The company has a debt-to-equity ratio of 1.14, a quick ratio of 1.30 and a current ratio of 2.25. Core & Main has a 52-week low of $41.60 and a 52-week high of $67.18. The firm has a 50 day moving average price of $60.22 and a two-hundred day moving average price of $56.30. The firm has a market cap of $10.63 billion, a price-to-earnings ratio of 24.04, a PEG ratio of 2.10 and a beta of 1.04.

Core & Main (NYSE:CNM - Get Free Report) last issued its earnings results on Tuesday, September 9th. The company reported $0.87 earnings per share for the quarter, topping analysts' consensus estimates of $0.79 by $0.08. The business had revenue of $2.09 billion during the quarter, compared to the consensus estimate of $2.12 billion. Core & Main had a return on equity of 25.44% and a net margin of 5.57%.The firm's revenue for the quarter was up 6.6% on a year-over-year basis. During the same period in the previous year, the company posted $0.61 earnings per share. Core & Main has set its FY 2025 guidance at EPS. Equities analysts predict that Core & Main will post 2.16 EPS for the current year.

Insider Buying and Selling at Core & Main

In related news, Director Orvin T. Kimbrough sold 23,962 shares of the company's stock in a transaction on Friday, July 18th. The stock was sold at an average price of $61.77, for a total transaction of $1,480,132.74. Following the completion of the sale, the director owned 13,958 shares in the company, valued at approximately $862,185.66. This represents a 63.19% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Also, CEO Mark R. Witkowski sold 100,000 shares of the company's stock in a transaction on Monday, August 18th. The stock was sold at an average price of $64.08, for a total value of $6,408,000.00. Following the sale, the chief executive officer owned 35,847 shares of the company's stock, valued at $2,297,075.76. This trade represents a 73.61% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 397,956 shares of company stock valued at $24,830,991 in the last three months. Insiders own 3.53% of the company's stock.

Institutional Investors Weigh In On Core & Main

Several institutional investors have recently bought and sold shares of the stock. Cullen Capital Management LLC grew its holdings in Core & Main by 14.0% during the second quarter. Cullen Capital Management LLC now owns 12,494 shares of the company's stock worth $754,000 after buying an additional 1,530 shares in the last quarter. Squarepoint Ops LLC bought a new stake in Core & Main during the second quarter worth $3,600,000. Thrivent Financial for Lutherans grew its holdings in Core & Main by 42.4% during the second quarter. Thrivent Financial for Lutherans now owns 208,499 shares of the company's stock worth $12,583,000 after buying an additional 62,096 shares in the last quarter. State of Wyoming bought a new stake in Core & Main during the second quarter worth $190,000. Finally, Captrust Financial Advisors grew its holdings in Core & Main by 4.1% during the second quarter. Captrust Financial Advisors now owns 63,227 shares of the company's stock worth $3,816,000 after buying an additional 2,509 shares in the last quarter. Institutional investors own 94.19% of the company's stock.

About Core & Main

Core & Main, Inc is a specialty distributor focused on water, wastewater, storm drainage and fire protection products, and related services. The company provides infrastructure solutions to municipalities, private water companies and professional contractors across municipal, non-residential, and residential end markets, nationwide.

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