Capital World Investors Increases Stock Position in Core & Main, Inc. $CNM

Key Points

• Capital World Investors boosted its stake in Core & Main by 294.9% in Q3 to 5,948,134 shares (about 3.01% of the company) worth roughly $320.2 million, and other institutions have also added positions leaving 94.19% of the stock held by hedge funds and institutional investors.
• Core & Main topped EPS expectations ($0.89 vs. $0.72) on $2.06 billion of revenue and its board authorized a $500 million buyback (up to 5% of shares); analysts rate the stock a consensus "Moderate Buy" with a $62 target and the shares trade in a 52-week range of $43.17–$67.18 (market cap ~$9.6B, P/E ~21.6).

Capital World Investors raised its stake in shares of Core & Main, Inc. (NYSE:CNM - Free Report) by 294.9% in the third quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 5,948,134 shares of the company's stock after acquiring an additional 4,442,047 shares during the period. Capital World Investors owned approximately 3.01% of Core & Main worth $320,188,000 as of its most recent SEC filing.

Other institutional investors and hedge funds have also made changes to their positions in the company. Norges Bank purchased a new position in shares of Core & Main during the 2nd quarter worth approximately $116,333,000. Bornite Capital Management LP purchased a new stake in Core & Main in the third quarter valued at approximately $53,830,000. AMF Tjanstepension AB acquired a new position in Core & Main during the third quarter worth $41,558,000. Fernbridge Capital Management LP boosted its position in shares of Core & Main by 180.4% during the second quarter. Fernbridge Capital Management LP now owns 1,071,238 shares of the company's stock worth $64,649,000 after buying an additional 689,228 shares during the period. Finally, Jennison Associates LLC boosted its position in shares of Core & Main by 41.7% during the third quarter. Jennison Associates LLC now owns 2,087,166 shares of the company's stock worth $112,352,000 after buying an additional 614,595 shares during the period. 94.19% of the stock is owned by hedge funds and other institutional investors.

Core & Main Stock Down 0.5%

Shares of NYSE:CNM opened at $49.12 on Thursday. Core & Main, Inc. has a fifty-two week low of $43.17 and a fifty-two week high of $67.18. The firm's 50 day moving average price is $55.48 and its 200 day moving average price is $53.75. The company has a quick ratio of 1.35, a current ratio of 2.26 and a debt-to-equity ratio of 1.04. The stock has a market cap of $9.60 billion, a price-to-earnings ratio of 21.64, a price-to-earnings-growth ratio of 1.82 and a beta of 0.98.

Core & Main (NYSE:CNM - Get Free Report) last posted its quarterly earnings results on Tuesday, December 9th. The company reported $0.89 EPS for the quarter, topping the consensus estimate of $0.72 by $0.17. Core & Main had a net margin of 5.60% and a return on equity of 24.63%. The company had revenue of $2.06 billion during the quarter, compared to analysts' expectations of $2.06 billion. During the same quarter in the previous year, the business posted $0.69 EPS. The firm's revenue was up 1.2% on a year-over-year basis. As a group, equities research analysts predict that Core & Main, Inc. will post 2.16 earnings per share for the current fiscal year.

Core & Main declared that its board has approved a stock repurchase plan on Tuesday, December 9th that allows the company to repurchase $500.00 million in outstanding shares. This repurchase authorization allows the company to buy up to 5% of its shares through open market purchases. Shares repurchase plans are typically a sign that the company's board of directors believes its stock is undervalued.

Analyst Ratings Changes

Several research firms recently issued reports on CNM. Wells Fargo & Company boosted their price objective on Core & Main from $57.00 to $65.00 and gave the company an "overweight" rating in a report on Wednesday, January 14th. Zacks Research cut Core & Main from a "strong-buy" rating to a "hold" rating in a report on Monday, February 9th. Citigroup boosted their price target on shares of Core & Main from $56.00 to $60.00 and gave the stock a "neutral" rating in a research note on Thursday, January 8th. Barclays reduced their price target on shares of Core & Main from $65.00 to $63.00 and set an "overweight" rating on the stock in a research report on Monday, December 1st. Finally, Deutsche Bank Aktiengesellschaft raised their price objective on shares of Core & Main from $63.00 to $65.00 and gave the company a "buy" rating in a research note on Thursday, December 11th. Seven research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, Core & Main has a consensus rating of "Moderate Buy" and a consensus target price of $62.00.

Core & Main Profile

Core & Main, Inc NYSE: CNM is a leading distributor of water, sewer, storm drainage and fire protection products across North America. The company's product portfolio includes valves, hydrants, pipe and fittings, meters, couplings and other essential components that support municipal, industrial and environmental infrastructure projects. By combining a comprehensive inventory with logistics and technical support, Core & Main helps customers address complex water system and distribution challenges.

With more than 300 branch locations and over 3,500 employees, Core & Main serves a diverse customer base that includes municipalities, contractors, engineers and utility providers.

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