Kingdon Capital Management L.L.C. Invests $8.07 Million in Core & Main, Inc. $CNM

Key Points

• Kingdon Capital Management bought a new stake of 150,000 shares in Core & Main valued at approximately $8.07 million, representing about 0.08% of the company at quarter-end.
• Core & Main's board authorized a $500 million share repurchase plan (up to 5% of shares), a move typically signaling the board views the stock as undervalued.
• Institutional ownership is high at 94.19%, with large recent positions (e.g., Holocene’s ~$100.8M buy and CalPERS’ $22.8M holding), and analysts hold a "Moderate Buy" consensus with an average target of $62.

Kingdon Capital Management L.L.C. purchased a new stake in Core & Main, Inc. (NYSE:CNM - Free Report) during the third quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The firm purchased 150,000 shares of the company's stock, valued at approximately $8,074,000. Kingdon Capital Management L.L.C. owned approximately 0.08% of Core & Main at the end of the most recent quarter.

Other institutional investors have also added to or reduced their stakes in the company. HighVista Strategies LLC bought a new stake in shares of Core & Main during the third quarter worth $1,502,000. Holocene Advisors LP bought a new position in Core & Main during the third quarter worth $100,765,000. Brevan Howard Capital Management LP lifted its holdings in Core & Main by 56.7% in the third quarter. Brevan Howard Capital Management LP now owns 72,341 shares of the company's stock valued at $3,894,000 after buying an additional 26,167 shares during the period. Circumference Group LLC acquired a new position in Core & Main in the third quarter valued at $2,692,000. Finally, California Public Employees Retirement System boosted its position in Core & Main by 15.7% during the third quarter. California Public Employees Retirement System now owns 423,375 shares of the company's stock valued at $22,790,000 after acquiring an additional 57,379 shares during the last quarter. 94.19% of the stock is currently owned by institutional investors and hedge funds.

Analysts Set New Price Targets

Several research analysts have recently weighed in on CNM shares. Zacks Research lowered Core & Main from a "strong-buy" rating to a "hold" rating in a research report on Monday, February 9th. Robert W. Baird raised their target price on Core & Main from $62.00 to $64.00 and gave the stock an "outperform" rating in a research note on Wednesday, December 10th. Barclays lowered their target price on Core & Main from $65.00 to $63.00 and set an "overweight" rating for the company in a report on Monday, December 1st. Deutsche Bank Aktiengesellschaft boosted their price target on Core & Main from $63.00 to $65.00 and gave the company a "buy" rating in a research note on Thursday, December 11th. Finally, Wells Fargo & Company raised their price objective on shares of Core & Main from $57.00 to $65.00 and gave the stock an "overweight" rating in a research report on Wednesday, January 14th. Seven equities research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company. According to MarketBeat, the company currently has an average rating of "Moderate Buy" and an average target price of $62.00.

Core & Main Price Performance

Shares of NYSE CNM opened at $48.05 on Monday. The company has a market capitalization of $9.39 billion, a PE ratio of 21.17, a PEG ratio of 1.77 and a beta of 0.98. 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's 50 day moving average price is $55.28 and its 200-day moving average price is $53.42. Core & Main, Inc. has a twelve month low of $43.17 and a twelve month high of $67.18.

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

Core & Main Company 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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