BlackRock Inc. Makes New $363.43 Million Investment in Exponent, Inc. $EXPO

Key Points

• BlackRock acquired a new $363.43 million stake in Exponent during the second quarter, purchasing 6.18 million shares and becoming the holder of approximately 12.75% of the company. Institutional investors collectively own 92.37% of Exponent.
• Exponent reported stronger-than-expected quarterly results, with earnings of $0.60 per share and revenue of $171.61 million, up 12% year over year. The company also declared a $0.31 quarterly dividend, representing a 1.8% yield.
• Analyst sentiment is moderately positive, with a consensus rating of “Moderate Buy” and an average price target of $81, compared with shares trading at $70.12. JPMorgan raised its target to $90 while UBS maintained a neutral $72 target.

BlackRock Inc. purchased a new position in shares of Exponent, Inc. (NASDAQ:EXPO - Free Report) during the second quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor purchased 6,184,950 shares of the business services provider's stock, valued at approximately $363,428,000. BlackRock Inc. owned approximately 12.75% of Exponent at the end of the most recent quarter.

Other institutional investors have also recently made changes to their positions in the company. United Services Automobile Association bought a new stake in shares of Exponent in the first quarter valued at about $270,000. Jane Street Group LLC increased its position in Exponent by 1,481.0% during the 1st quarter. Jane Street Group LLC now owns 127,222 shares of the business services provider's stock valued at $10,313,000 after purchasing an additional 119,175 shares during the period. Invesco Ltd. increased its position in Exponent by 3.3% during the 2nd quarter. Invesco Ltd. now owns 554,733 shares of the business services provider's stock valued at $41,444,000 after purchasing an additional 17,930 shares during the period. First Trust Advisors LP bought a new stake in shares of Exponent in the 2nd quarter valued at about $18,377,000. Finally, Walleye Capital LLC raised its holdings in shares of Exponent by 7.5% in the 2nd quarter. Walleye Capital LLC now owns 6,623 shares of the business services provider's stock valued at $495,000 after purchasing an additional 464 shares in the last quarter. Hedge funds and other institutional investors own 92.37% of the company's stock.

Insider Buying and Selling

In related news, CEO Catherine Corrigan sold 1,707 shares of Exponent stock in a transaction that occurred on Monday, August 17th. The shares were sold at an average price of $66.28, for a total value of $113,139.96. Following the completion of the sale, the chief executive officer directly owned 129,108 shares in the company, valued at $8,557,278.24. This trade represents a 1.30% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 1.70% of the stock is owned by company insiders.

Exponent Price Performance

Shares of NASDAQ:EXPO opened at $70.12 on Wednesday. The business's 50-day moving average is $63.48 and its 200 day moving average is $64.55. Exponent, Inc. has a 1 year low of $51.91 and a 1 year high of $81.95. The firm has a market capitalization of $3.33 billion, a P/E ratio of 31.44 and a beta of 0.68.

Exponent (NASDAQ:EXPO - Get Free Report) last issued its quarterly earnings results on Thursday, July 30th. The business services provider reported $0.60 earnings per share for the quarter, topping the consensus estimate of $0.55 by $0.05. Exponent had a return on equity of 31.48% and a net margin of 17.67%.The business had revenue of $171.61 million during the quarter, compared to the consensus estimate of $144.99 million. During the same quarter last year, the company earned $0.52 earnings per share. The company's quarterly revenue was up 12.0% on a year-over-year basis. On average, analysts expect that Exponent, Inc. will post 2.31 EPS for the current year.

Exponent Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, September 18th. Investors of record on Friday, September 4th will be given a $0.31 dividend. This represents a $1.24 annualized dividend and a dividend yield of 1.8%. The ex-dividend date of this dividend is Friday, September 4th. Exponent's dividend payout ratio (DPR) is presently 55.61%.

Analyst Ratings Changes

EXPO has been the subject of several research reports. UBS Group set a $72.00 price target on shares of Exponent and gave the stock a "neutral" rating in a research report on Friday, July 31st. JPMorgan Chase & Co. boosted their price objective on shares of Exponent from $80.00 to $90.00 and gave the stock an "overweight" rating in a research note on Friday, July 31st. Finally, Weiss Ratings restated a "hold (c-)" rating on shares of Exponent in a report on Friday, July 17th. Two research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $81.00.

About Exponent

Exponent, Inc NASDAQ: EXPO is an engineering and scientific consulting firm that offers multidisciplinary analysis and advisory services to clients across a range of industries. The company's expertise spans mechanical, materials and corrosion engineering, civil and structural engineering, electrical engineering, industrial hygiene, toxicology and health sciences, and failure analysis. Exponent provides support for product design, performance evaluation, litigation consulting, and regulatory compliance, helping manufacturers, insurers, law firms and government agencies address complex technical challenges.

Founded in 1967 in Menlo Park, California, Exponent has grown from a small failure-analysis laboratory into a global consulting practice.

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