Eagle Materials (NYSE:EXP) Shares Gap Up After Strong Earnings

Key Points

• Eagle Materials shares gapped up before trading, opening at $231.19 after a previous close of $220.92, with the last traded price at $230.29.
• Several analysts have revised their target prices for Eagle Materials, with Goldman Sachs setting a target of $242.00 and a "buy" rating, while Citigroup revised their target down to $230.00 with a "neutral" rating.
• The company reported a quarterly dividend of $0.25, translating to an annualized dividend of $1.00, resulting in a dividend yield of 0.43%.

Eagle Materials Inc (NYSE:EXP - Get Free Report)'s share price gapped up before the market opened on Tuesday after the company announced better than expected quarterly earnings. The stock had previously closed at $220.92, but opened at $231.19. Eagle Materials shares last traded at $230.29, with a volume of 78,667 shares.

The construction company reported $3.76 earnings per share for the quarter, topping analysts' consensus estimates of $3.73 by $0.03. The company had revenue of $634.69 million for the quarter, compared to analyst estimates of $611.52 million. Eagle Materials had a return on equity of 31.21% and a net margin of 19.81%.

Eagle Materials Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Thursday, July 24th. Shareholders of record on Monday, June 16th were paid a dividend of $0.25 per share. The ex-dividend date of this dividend was Monday, June 16th. This represents a $1.00 dividend on an annualized basis and a yield of 0.5%. Eagle Materials's payout ratio is 7.27%.

Wall Street Analyst Weigh In

A number of research firms have weighed in on EXP. Stifel Nicolaus set a $241.00 price objective on Eagle Materials and gave the stock a "hold" rating in a research note on Wednesday, May 21st. Loop Capital lifted their target price on Eagle Materials from $230.00 to $245.00 and gave the company a "hold" rating in a research report on Wednesday. Stephens set a $255.00 target price on Eagle Materials and gave the company an "overweight" rating in a research report on Thursday, May 22nd. DA Davidson reduced their target price on Eagle Materials from $260.00 to $245.00 and set a "neutral" rating on the stock in a research report on Friday, May 23rd. Finally, The Goldman Sachs Group set a $242.00 target price on Eagle Materials and gave the company a "buy" rating in a research report on Wednesday, May 21st. One research analyst has rated the stock with a sell rating, six have issued a hold rating and three have given a buy rating to the company. According to MarketBeat, Eagle Materials currently has an average rating of "Hold" and a consensus price target of $255.33.

Institutional Investors Weigh In On Eagle Materials

Large investors have recently bought and sold shares of the stock. Bridges Investment Management Inc. increased its holdings in Eagle Materials by 111.4% during the 1st quarter. Bridges Investment Management Inc. now owns 6,918 shares of the construction company's stock worth $1,535,000 after purchasing an additional 3,645 shares during the period. Teacher Retirement System of Texas increased its holdings in Eagle Materials by 234.6% during the 1st quarter. Teacher Retirement System of Texas now owns 4,905 shares of the construction company's stock worth $1,089,000 after purchasing an additional 3,439 shares during the period. Hi Line Capital Management LLC purchased a new stake in Eagle Materials during the 1st quarter worth about $4,770,000. GAMMA Investing LLC increased its holdings in Eagle Materials by 21.2% during the 1st quarter. GAMMA Investing LLC now owns 819 shares of the construction company's stock worth $182,000 after purchasing an additional 143 shares during the period. Finally, Private Trust Co. NA increased its holdings in Eagle Materials by 39.0% during the 1st quarter. Private Trust Co. NA now owns 285 shares of the construction company's stock worth $63,000 after purchasing an additional 80 shares during the period. Hedge funds and other institutional investors own 96.07% of the company's stock.

Eagle Materials Trading Down 1.8%

The company has a fifty day simple moving average of $209.71 and a two-hundred day simple moving average of $224.13. The company has a current ratio of 2.73, a quick ratio of 1.03 and a debt-to-equity ratio of 0.93. The company has a market cap of $7.19 billion, a PE ratio of 16.19 and a beta of 1.26.

About Eagle Materials

Eagle Materials Inc, through its subsidiaries, manufactures and sells heavy construction materials and light building materials in the United States. It operates in four segments: Cement, Concrete and Aggregates, Gypsum Wallboard, and Recycled Paperboard. The company engages in the mining of limestone for the manufacture, production, distribution, and sale of Portland cement, including Portland limestone cement; grinding and sale of slag; and mining of gypsum for the manufacture and sale of gypsum wallboards used to finish the interior walls and ceilings in residential, commercial, and industrial structures, as well as well as containerboard and lightweight packaging grades; manufacture and sale of recycled paperboard to the gypsum wallboard industry and other paperboard converters; the sale of readymix concrete; and mining and sale of aggregates, such as crushed stone, sand, and gravel.