FirstService (NASDAQ:FSV) Trading Down 10.3% - Should You Sell?

Key Points

• FirstService shares fell 10.3% in Thursday trading, slipping to about $127 after closing at $141.63 the previous day. Trading volume was well below average, with just 44,649 shares changing hands.
• Despite the selloff, analyst sentiment remains positive overall: the stock has eight Buy ratings and three Hold ratings, with a consensus target price of $195.89 and an average rating of “Moderate Buy.”
• The company recently reported better-than-expected quarterly results, earning $0.95 per share on revenue of $1.30 billion, while also paying a quarterly dividend of $0.305 per share for a 0.9% annual yield.

FirstService Corporation (NASDAQ:FSV - Get Free Report) TSE: FSV's share price was down 10.3% during mid-day trading on Thursday . The stock traded as low as $126.49 and last traded at $127.0270. 44,649 shares were traded during mid-day trading, a decline of 79% from the average daily volume of 211,308 shares. The stock had previously closed at $141.63.

Analyst Upgrades and Downgrades

A number of equities analysts have recently issued reports on the stock. Wall Street Zen upgraded shares of FirstService from a "hold" rating to a "buy" rating in a research note on Saturday, May 9th. TD lifted their target price on shares of FirstService from $204.00 to $207.00 and gave the company a "buy" rating in a research report on Tuesday, July 14th. TD Securities set a $204.00 target price on shares of FirstService in a research note on Friday, April 24th. Scotiabank dropped their price target on shares of FirstService from $190.00 to $175.00 and set an "outperform" rating for the company in a research report on Tuesday, June 30th. Finally, TD Cowen restated a "buy" rating and set a $204.00 price target on shares of FirstService in a research note on Wednesday, June 3rd. Eight equities research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. According to data from MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus target price of $195.89.

FirstService Stock Performance

The company has a market capitalization of $5.96 billion, a P/E ratio of 36.68, a PEG ratio of 4.33 and a beta of 0.94. The stock has a fifty day simple moving average of $139.29 and a 200-day simple moving average of $145.59. The company has a quick ratio of 1.66, a current ratio of 1.66 and a debt-to-equity ratio of 0.74.

FirstService (NASDAQ:FSV - Get Free Report) TSE: FSV last posted its earnings results on Thursday, April 23rd. The financial services provider reported $0.95 earnings per share for the quarter, topping the consensus estimate of $0.89 by $0.06. The business had revenue of $1.30 billion for the quarter, compared to analyst estimates of $1.29 billion. FirstService had a net margin of 2.92% and a return on equity of 17.91%. The firm's quarterly revenue was up 5.3% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $0.92 EPS. Equities analysts forecast that FirstService Corporation will post 5.57 EPS for the current year.

FirstService Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, July 7th. Shareholders of record on Tuesday, June 30th were paid a dividend of $0.305 per share. This represents a $1.22 annualized dividend and a yield of 0.9%. The ex-dividend date of this dividend was Tuesday, June 30th. FirstService's dividend payout ratio is currently 34.46%.

Institutional Inflows and Outflows

A number of institutional investors have recently modified their holdings of FSV. PensionDanmark Pensionsforsikringsaktieselskab boosted its holdings in shares of FirstService by 39.4% in the 2nd quarter. PensionDanmark Pensionsforsikringsaktieselskab now owns 21,200 shares of the financial services provider's stock worth $3,014,000 after acquiring an additional 5,990 shares in the last quarter. Hilltop National Bank increased its holdings in FirstService by 4.1% during the 2nd quarter. Hilltop National Bank now owns 2,055 shares of the financial services provider's stock valued at $292,000 after purchasing an additional 81 shares in the last quarter. Glenmede Trust Co. NA increased its holdings in FirstService by 32.8% during the 1st quarter. Glenmede Trust Co. NA now owns 5,585 shares of the financial services provider's stock valued at $776,000 after purchasing an additional 1,378 shares in the last quarter. Summitry LLC raised its position in FirstService by 44.9% in the 1st quarter. Summitry LLC now owns 2,670 shares of the financial services provider's stock valued at $371,000 after purchasing an additional 827 shares during the last quarter. Finally, Argent Capital Management LLC raised its position in FirstService by 52.0% in the 1st quarter. Argent Capital Management LLC now owns 50,787 shares of the financial services provider's stock valued at $7,056,000 after purchasing an additional 17,377 shares during the last quarter. Institutional investors own 69.35% of the company's stock.

About FirstService

FirstService Corporation, founded in 1989 and headquartered in Toronto, Ontario, is a leading provider of property services in North America. The company operates through two principal segments—FirstService Residential and FirstService Brands—offering a broad range of services to residential, commercial and homeowner association clients.

FirstService Residential delivers community management, financial oversight and consulting services to thousands of residential communities across the United States and Canada.

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