AZZ Inc. $AZZ Holdings Lowered by Copeland Capital Management LLC

Key Points

• Copeland Capital Management reduced its AZZ stake by 2.7% in the third quarter, selling 11,753 shares and retaining 423,805 shares valued at approximately $57 million. Institutional investors collectively own 90.93% of the company.
• AZZ reported stronger-than-expected quarterly results: adjusted EPS was $2.00 versus the $1.86 consensus, while revenue increased 16.7% year over year to $486.9 million. Management also raised fiscal 2027 guidance, supported by higher EBITDA and operating cash flow.
• Analysts maintain a generally positive outlook, with four Buy ratings and two Holds and a consensus price target of $155.25 versus the reported share price of $137.30. However, GAAP earnings declined due to an unfavorable comparison with a prior-year one-time gain, and recent insider activity consisted of executive stock sales.

Copeland Capital Management LLC trimmed its stake in shares of AZZ Inc. (NYSE:AZZ - Free Report) by 2.7% during the third quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 423,805 shares of the industrial products company's stock after selling 11,753 shares during the quarter. AZZ makes up 1.3% of Copeland Capital Management LLC's portfolio, making the stock its 29th biggest position. Copeland Capital Management LLC owned 1.41% of AZZ worth $56,955,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other hedge funds have also recently added to or reduced their stakes in AZZ. PDT Partners LLC acquired a new stake in shares of AZZ in the 2nd quarter worth about $1,597,000. Public Employees Retirement System of Ohio bought a new stake in AZZ in the second quarter worth about $2,716,000. Bank of America Corp DE bought a new stake in shares of AZZ in the 2nd quarter worth approximately $32,505,000. Jupiter Topco LLC acquired a new stake in shares of AZZ during the 2nd quarter valued at $14,588,000. Finally, The Manufacturers Life Insurance Company purchased a new stake in shares of AZZ during the second quarter valued at $2,186,000. Institutional investors and hedge funds own 90.93% of the company's stock.

Analysts Set New Price Targets

A number of equities analysts recently commented on AZZ shares. Wall Street Zen lowered shares of AZZ from a "buy" rating to a "hold" rating in a research note on Sunday, July 12th. Weiss Ratings restated a "buy (b)" rating on shares of AZZ in a report on Tuesday, October 6th. Wells Fargo & Company boosted their price target on AZZ from $138.00 to $144.00 and gave the stock an "equal weight" rating in a research report on Friday, July 10th. Finally, B. Riley Financial boosted their price objective on shares of AZZ from $169.00 to $170.00 and gave the stock a "buy" rating in a research note on Monday, July 13th. Four analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the stock. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus target price of $155.25.

AZZ News Summary

Here are the key news stories impacting AZZ this week:

• Positive Sentiment: Results exceeded expectations: Adjusted earnings were $2.00 per share, ahead of consensus estimates ranging from $1.82 to $1.87, while revenue rose 16.7% year over year to $486.9 million, above estimates of approximately $463 million to $468 million. AZZ Tops Q2 Earnings and Revenue Estimates
• Positive Sentiment: Broad-based operating growth: Metal Coatings sales increased 22.9% to $233.5 million and Precoat Metals sales grew 11.5% to $253.4 million. Adjusted EBITDA rose 22.8% to $110.9 million, with the margin expanding to 22.8% from 21.3%. AZZ Fiscal 2027 Second-Quarter Results
• Positive Sentiment: Improved cash generation and outlook: Operating cash flow jumped 76.1% to $102.8 million, and management raised fiscal 2027 guidance. AZZ also completed its Seattle Galvanizing acquisition and repurchased $20 million of stock, signaling confidence in cash flow and shareholder value.
• Positive Sentiment: Analyst upside remains: Recent analyst price targets have a median of $155, with a range of $152 to $169, above the stock’s recent trading level. AZZ Consensus Price Target
• Neutral Sentiment: AZZ paid its regular $0.24-per-share dividend during the quarter. The company’s net leverage ratio remained moderate at 1.3 times trailing-twelve-month adjusted EBITDA.
• Negative Sentiment: GAAP net income declined 34.6% and GAAP diluted EPS fell to $1.94 because the prior-year period benefited from a one-time gain related to AZZ’s AVAIL joint venture. This comparison could temper the headline strength, although adjusted net income increased 28.1%.
• Negative Sentiment: Recent insider activity cited by Quiver Quantitative included two executive stock sales and no insider purchases in the past six months, a modest cautionary signal.

AZZ Stock Down 0.3%

Shares of NYSE AZZ opened at $137.30 on Wednesday. AZZ Inc. has a 52-week low of $94.61 and a 52-week high of $162.20. The stock has a market cap of $4.13 billion, a PE ratio of 20.93 and a beta of 1.13. The business has a fifty day moving average of $140.18 and a two-hundred day moving average of $141.98. The company has a debt-to-equity ratio of 0.35, a quick ratio of 1.39 and a current ratio of 1.92.

AZZ (NYSE:AZZ - Get Free Report) last issued its quarterly earnings data on Tuesday, October 13th. The industrial products company reported $2.00 earnings per share for the quarter, topping the consensus estimate of $1.86 by $0.14. The firm had revenue of $486.89 million for the quarter, compared to analysts' expectations of $463.44 million. AZZ had a net margin of 11.83% and a return on equity of 14.18%. The company's quarterly revenue was up 16.7% compared to the same quarter last year. During the same period in the prior year, the firm earned $1.55 earnings per share. AZZ has set its FY 2027 guidance at 7.000-7.300 EPS. As a group, equities research analysts expect that AZZ Inc. will post 7.06 earnings per share for the current fiscal year.

AZZ Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Thursday, November 5th. Investors of record on Monday, October 19th will be given a dividend of $0.24 per share. The ex-dividend date is Monday, October 19th. This represents a $0.96 annualized dividend and a yield of 0.7%. AZZ's dividend payout ratio is 14.63%.

Insider Activity at AZZ

In related news, COO Jeffrey Vellines sold 4,220 shares of AZZ stock in a transaction dated Tuesday, August 11th. The stock was sold at an average price of $153.55, for a total value of $647,981.00. Following the completion of the sale, the chief operating officer directly owned 1,834 shares in the company, valued at $281,610.70. This trade represents a 69.71% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, COO Bryan Lee Stovall sold 2,677 shares of the business's stock in a transaction that occurred on Friday, August 14th. The stock was sold at an average price of $150.07, for a total transaction of $401,737.39. Following the sale, the chief operating officer directly owned 35,000 shares of the company's stock, valued at approximately $5,252,450. This trade represents a 7.11% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 1.70% of the stock is owned by corporate insiders.

AZZ Profile

AZZ Inc is a provider of metal coating solutions serving customers primarily in North America. The company operates through its Metal Coatings and Precoat Metals segments, helping protect and enhance the performance, appearance, and durability of steel and other metal products used across a range of industries.

Through its Metal Coatings segment, AZZ provides hot-dip galvanizing, powder coating, anodizing, plating, and related coating services. These treatments are used for corrosion protection and finishing applications involving infrastructure, construction, industrial, transportation, and other metal products.

Precoat Metals provides coil coating services for steel and aluminum products before they are fabricated.

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