Finning International (TSE:FTT) Trading Down 8.7% - Here's Why

Key Points

• Finning International shares fell 8.7% to C$98.48 in Monday trading, with the decline occurring on volume below the stock’s average session level.
• Despite the selloff, analysts remain positive: all eight covering analysts rate the stock a Buy, with a consensus price target of C$115.78 and several recent target-price increases.
• The company reported quarterly EPS of C$1.02 on C$2.50 billion in revenue, while insiders have collectively sold 7,813 shares worth approximately C$827,102 over the past three months.

Finning International Inc. (TSE:FTT - Get Free Report)'s share price dropped 8.7% on Monday . The stock traded as low as C$95.59 and last traded at C$98.48. Approximately 306,473 shares changed hands during mid-day trading, a decline of 31% from the average session volume of 442,917 shares. The stock had previously closed at C$107.90.

Analyst Upgrades and Downgrades

FTT has been the subject of several analyst reports. Royal Bank Of Canada raised their target price on Finning International from C$104.00 to C$130.00 in a research report on Friday, May 15th. National Bank Financial set a C$115.00 price target on Finning International and gave the company an "outperform" rating in a research note on Tuesday, June 23rd. Canadian Imperial Bank of Commerce raised their price objective on Finning International from C$100.00 to C$120.00 in a research report on Thursday, May 14th. Raymond James Financial lifted their price objective on Finning International from C$100.00 to C$120.00 and gave the stock an "outperform" rating in a research note on Thursday, May 14th. Finally, BMO Capital Markets increased their target price on shares of Finning International from C$96.00 to C$115.00 in a research report on Thursday, May 14th. Eight equities research analysts have rated the stock with a Buy rating, According to data from MarketBeat.com, the stock currently has an average rating of "Buy" and a consensus price target of C$115.78.

Finning International Stock Performance

The company has a quick ratio of 0.59, a current ratio of 1.61 and a debt-to-equity ratio of 88.08. The company has a 50 day simple moving average of C$101.26 and a 200-day simple moving average of C$93.82. The stock has a market capitalization of C$12.93 billion, a price-to-earnings ratio of 19.45, a price-to-earnings-growth ratio of 0.56 and a beta of 0.88.

Finning International (TSE:FTT - Get Free Report) last posted its quarterly earnings results on Tuesday, May 12th. The company reported C$1.02 earnings per share (EPS) for the quarter. The firm had revenue of C$2.50 billion for the quarter. Finning International had a return on equity of 24.23% and a net margin of 6.34%. As a group, equities research analysts expect that Finning International Inc. will post 4.244898 EPS for the current fiscal year.

Insider Buying and Selling at Finning International

In related news, insider Tim Arne Ferwerda sold 1,478 shares of the stock in a transaction on Monday, June 1st. The shares were sold at an average price of C$106.12, for a total transaction of C$156,845.36. Following the transaction, the insider directly owned 16,016 shares of the company's stock, valued at C$1,699,617.92. This represents a 8.45% decrease in their ownership of the stock. Also, insider Gary Samuel Megarrell sold 300 shares of Finning International stock in a transaction on Thursday, May 14th. The shares were sold at an average price of C$103.00, for a total transaction of C$30,900.00. Following the completion of the sale, the insider directly owned 2,511 shares of the company's stock, valued at approximately C$258,633. This trade represents a 10.67% decrease in their ownership of the stock. Over the last three months, insiders have sold 7,813 shares of company stock worth $827,102. 0.10% of the stock is owned by insiders.

About Finning International

Finning International Inc is a dealer and distributor of heavy-duty machinery and parts of the Caterpillar brand. The company sells and rents Caterpillar machinery to the mining, construction, petroleum, forestry, and power system application industries. Finning International further provides parts and services for equipment and engines to its customers via its owned distribution network and buys and sells used equipment domestically and internationally after reconditioning or rebuilding the machinery.

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