Flagship Capital Management Inc. Makes New Investment in UFP Industries, Inc. $UFPI

Key Points

• Flagship Capital Management bought a new position of 17,022 shares in UFP Industries (NASDAQ:UFPI) during Q4—about $1.55 million, roughly 1.1% of Flagship’s portfolio and its 27th-largest holding; overall institutional ownership of UFPI is ~81.8% with other large additions from firms like Millennium and Deprince Race & Zollo.
• UFP missed Q4 expectations, reporting EPS of $0.70 versus $1.03 expected and revenue of $1.33 billion versus $1.40 billion, with revenue down 9% year-over-year.
• The company raised its quarterly dividend to $0.36 (annualized $1.44, yield ~1.5%), while analysts show mixed views and a consensus "Hold" rating with an average price target of $106.67.

Flagship Capital Management Inc. purchased a new position in UFP Industries, Inc. (NASDAQ:UFPI - Free Report) during the 4th quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm purchased 17,022 shares of the construction company's stock, valued at approximately $1,550,000. UFP Industries accounts for about 1.1% of Flagship Capital Management Inc.'s portfolio, making the stock its 27th largest position.

Several other institutional investors have also added to or reduced their stakes in UFPI. Deprince Race & Zollo Inc. bought a new position in UFP Industries in the third quarter worth approximately $41,962,000. Millennium Management LLC raised its position in UFP Industries by 209.9% in the third quarter. Millennium Management LLC now owns 425,336 shares of the construction company's stock worth $39,765,000 after acquiring an additional 288,093 shares during the period. Cubist Systematic Strategies LLC bought a new position in UFP Industries in the second quarter worth approximately $20,151,000. Jane Street Group LLC raised its position in UFP Industries by 121.9% in the second quarter. Jane Street Group LLC now owns 267,818 shares of the construction company's stock worth $26,610,000 after acquiring an additional 147,100 shares during the period. Finally, UBS Group AG raised its position in UFP Industries by 47.3% in the third quarter. UBS Group AG now owns 429,440 shares of the construction company's stock worth $40,148,000 after acquiring an additional 137,968 shares during the period. 81.81% of the stock is currently owned by institutional investors.

UFP Industries Price Performance

Shares of NASDAQ:UFPI opened at $94.87 on Friday. The company has a debt-to-equity ratio of 0.07, a quick ratio of 3.13 and a current ratio of 4.59. The firm has a fifty day moving average price of $99.71 and a 200 day moving average price of $95.98. UFP Industries, Inc. has a fifty-two week low of $84.82 and a fifty-two week high of $118.00. The firm has a market cap of $5.39 billion, a price-to-earnings ratio of 19.01 and a beta of 1.44.

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

UFP Industries Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Monday, March 16th. Investors of record on Monday, March 2nd were given a dividend of $0.36 per share. This is a positive change from UFP Industries's previous quarterly dividend of $0.35. This represents a $1.44 dividend on an annualized basis and a dividend yield of 1.5%. The ex-dividend date was Monday, March 2nd. UFP Industries's dividend payout ratio (DPR) is currently 28.86%.

Analysts Set New Price Targets

Several research firms have weighed in on UFPI. Zacks Research downgraded shares of UFP Industries from a "hold" rating to a "strong sell" rating in a research report on Tuesday, March 17th. Weiss Ratings reissued a "hold (c-)" rating on shares of UFP Industries in a research note on Tuesday, January 27th. Finally, DA Davidson reduced their price objective on shares of UFP Industries from $112.00 to $110.00 and set a "buy" rating for the company in a research note on Tuesday, March 10th. One equities research analyst has rated the stock with a Buy rating, three have assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of "Hold" and an average target price of $106.67.

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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