DA Davidson Has Lowered Expectations for UFP Industries (NASDAQ:UFPI) Stock Price

Key Points

• DA Davidson trimmed its price target on UFP Industries to $110 (from $112) but kept a buy rating, implying about an 18.7% upside from the recent close.
• UFP missed quarterly expectations, reporting EPS of $0.70 vs. $1.03 estimated and revenue of $1.33B vs. $1.40B (revenue down 9% year-over-year), with the stock trading around $92.66—below its 50-day moving average.
• Insider activity and ownership: Chairman Matthew Missad sold 11,000 shares, insiders own 2.56% of the stock, and institutional investors hold roughly 81.8% of shares outstanding.

UFP Industries (NASDAQ:UFPI - Get Free Report) had its target price reduced by equities research analysts at DA Davidson from $112.00 to $110.00 in a research report issued on Tuesday,Benzinga reports. The firm presently has a "buy" rating on the construction company's stock. DA Davidson's target price points to a potential upside of 18.72% from the company's previous close.

UFPI has been the topic of several other research reports. Weiss Ratings reiterated a "hold (c-)" rating on shares of UFP Industries in a research report on Tuesday, January 27th. Stifel Nicolaus set a $98.00 price objective on UFP Industries in a research report on Tuesday, December 2nd. Finally, Zacks Research upgraded shares of UFP Industries from a "strong sell" rating to a "hold" rating in a research report on Monday, January 19th. One analyst has rated the stock with a Buy rating and four have assigned a Hold rating to the company's stock. Based on data from MarketBeat, UFP Industries currently has an average rating of "Hold" and an average target price of $106.67.

UFP Industries Stock Performance

Shares of NASDAQ:UFPI traded down $0.71 during trading on Tuesday, reaching $92.66. The company had a trading volume of 39,668 shares, compared to its average volume of 355,952. The company has a debt-to-equity ratio of 0.07, a current ratio of 4.59 and a quick ratio of 3.13. The stock's fifty day moving average price is $104.40 and its 200 day moving average price is $97.59. UFP Industries has a fifty-two week low of $87.11 and a fifty-two week high of $118.00. The firm has a market capitalization of $5.24 billion, a price-to-earnings ratio of 18.58 and a beta of 1.48.

UFP Industries (NASDAQ:UFPI - Get Free Report) last announced its quarterly earnings data on Monday, February 23rd. The construction company reported $0.70 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.03 by ($0.33). The firm had revenue of $1.33 billion during the quarter, compared to analyst estimates of $1.40 billion. UFP Industries had a net margin of 4.66% and a return on equity of 9.27%. The business's quarterly revenue was down 9.0% compared to the same quarter last year. During the same period in the prior year, the firm posted $1.12 earnings per share. As a group, equities research analysts predict that UFP Industries will post 7.08 EPS for the current year.

Insider Activity

In related news, Chairman Matthew J. Missad sold 11,000 shares of UFP Industries stock in a transaction on Thursday, December 11th. The shares were sold at an average price of $92.26, for a total transaction of $1,014,860.00. Following the sale, the chairman owned 310,533 shares of the company's stock, valued at $28,649,774.58. The trade was a 3.42% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. 2.56% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On UFP Industries

Several hedge funds and other institutional investors have recently modified their holdings of UFPI. Hsbc Holdings PLC lifted its holdings in shares of UFP Industries by 300.7% in the 4th quarter. Hsbc Holdings PLC now owns 21,424 shares of the construction company's stock worth $1,959,000 after purchasing an additional 16,077 shares during the last quarter. Caitong International Asset Management Co. Ltd lifted its stake in UFP Industries by 222.7% in the fourth quarter. Caitong International Asset Management Co. Ltd now owns 1,210 shares of the construction company's stock valued at $110,000 after buying an additional 835 shares during the last quarter. River Road Asset Management LLC boosted its holdings in shares of UFP Industries by 64.1% during the fourth quarter. River Road Asset Management LLC now owns 879,935 shares of the construction company's stock valued at $80,118,000 after acquiring an additional 343,830 shares during the period. Virtu Financial LLC bought a new position in shares of UFP Industries during the fourth quarter worth about $334,000. Finally, Cambient Family Office LLC acquired a new stake in shares of UFP Industries in the 4th quarter worth about $844,000. Institutional investors own 81.81% of the company's stock.

About UFP Industries

UFP Industries, Inc, founded in 1955 and headquartered in Grand Rapids, Michigan, designs, manufactures, and distributes a broad range of wood and wood-alternative products. The company operates through two primary segments: UFP Retail Solutions, which supplies building materials and components to home improvement retailers and lumber dealers, and UFP Distribution Solutions, which offers packaging, pallets, skids, and other industrial products for a variety of end markets. Its product portfolio includes treated and untreated lumber, engineered wood, decking, railing, fencing, vinyl sheets and profiles, and custom-designed packaging solutions.

With manufacturing facilities and distribution centers across the United States, Canada, Mexico and Europe, UFP Industries serves professional contractors, industrial customers, and do-it-yourself consumers.

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