Core & Main (NYSE:CNM) Shares Gap Down - Should You Sell?

Key Points

• Core & Main's stock price gapped down significantly from $66.59 to $51.12 before closing at $51.01, with over 7.8 million shares traded.
• Despite the drop, Wall Street analysts maintain a generally positive outlook, with an average target price of $63.40 and six analysts rating the stock as a Buy.
• The company reported earnings of $0.87 per share, beating estimates, although its revenue fell short of expectations at $2.09 billion for the quarter.

Core & Main, Inc. (NYSE:CNM - Get Free Report)'s share price gapped down prior to trading on Tuesday . The stock had previously closed at $66.59, but opened at $51.12. Core & Main shares last traded at $51.01, with a volume of 7,807,340 shares trading hands.

Wall Street Analysts Forecast Growth

CNM has been the topic of a number of research analyst reports. Wells Fargo & Company cut their target price on Core & Main from $70.00 to $58.00 and set an "overweight" rating on the stock in a research report on Wednesday. The Goldman Sachs Group dropped their price target on Core & Main from $68.00 to $60.00 and set a "neutral" rating on the stock in a research report on Friday. Loop Capital restated a "hold" rating and issued a $68.00 price target on shares of Core & Main in a research report on Monday, July 28th. JPMorgan Chase & Co. dropped their price target on Core & Main from $64.00 to $54.00 and set an "overweight" rating on the stock in a research report on Wednesday. Finally, Barclays lowered their price objective on Core & Main from $69.00 to $65.00 and set an "overweight" rating on the stock in a report on Wednesday. Six analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company. According to MarketBeat, the company currently has an average rating of "Moderate Buy" and an average price target of $59.60.

Core & Main Price Performance

The company has a 50 day moving average price of $62.85 and a 200 day moving average price of $56.05. The firm has a market cap of $9.61 billion, a PE ratio of 21.77, a price-to-earnings-growth ratio of 1.88 and a beta of 1.04. The company has a current ratio of 2.25, a quick ratio of 1.10 and a debt-to-equity ratio of 1.14.

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

Insider Transactions at Core & Main

In related news, CEO Mark R. Witkowski sold 100,000 shares of the company's stock in a transaction that occurred 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 approximately $2,297,075.76. This represents a 73.61% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CFO Robyn L. Bradbury sold 5,000 shares of the company's stock in a transaction that occurred on Tuesday, July 22nd. The shares were sold at an average price of $64.51, for a total value of $322,550.00. Following the completion of the sale, the chief financial officer directly owned 8,555 shares in the company, valued at approximately $551,883.05. The trade was a 36.89% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 422,956 shares of company stock worth $26,343,241 in the last quarter. Insiders own 3.53% of the company's stock.

Institutional Inflows and Outflows

A number of large investors have recently made changes to their positions in CNM. EverSource Wealth Advisors LLC lifted its stake in shares of Core & Main by 145.4% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 454 shares of the company's stock worth $27,000 after purchasing an additional 269 shares during the period. Parallel Advisors LLC increased its holdings in shares of Core & Main by 447.1% during the 1st quarter. Parallel Advisors LLC now owns 651 shares of the company's stock worth $31,000 after buying an additional 532 shares during the last quarter. Bfsg LLC increased its holdings in shares of Core & Main by 56.4% during the 2nd quarter. Bfsg LLC now owns 560 shares of the company's stock worth $34,000 after buying an additional 202 shares during the last quarter. Cubist Systematic Strategies LLC increased its holdings in shares of Core & Main by 262.0% during the 1st quarter. Cubist Systematic Strategies LLC now owns 724 shares of the company's stock worth $35,000 after buying an additional 524 shares during the last quarter. Finally, Rossby Financial LCC acquired a new stake in shares of Core & Main during the 1st quarter worth $37,000. Hedge funds and other 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.