FirstService (NASDAQ:FSV) Trading Down 6% - Here's Why

Key Points

• FirstService Corporation's stock price dropped by 6% during trading, closing at $173.64, with a significant decline in trading volume compared to average sessions.
• Analysts have mixed sentiments about FirstService, with Zacks Research downgrading the stock from a "strong-buy" to a "hold" rating, while Scotiabank raised its price target to $220.00.
• The company reported a net margin of 2.61% and earnings per share (EPS) of $1.71 for the last quarter, beating estimates and showing a 9.1% increase in revenue year-over-year.

FirstService Corporation (NASDAQ:FSV - Get Free Report) TSE: FSV's stock price fell 6% during trading on Thursday . The company traded as low as $174.25 and last traded at $173.64. 22,228 shares changed hands during mid-day trading, a decline of 84% from the average session volume of 134,930 shares. The stock had previously closed at $184.76.

Analyst Upgrades and Downgrades

A number of equities research analysts have commented on FSV shares. Zacks Research cut FirstService from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, September 23rd. TD Securities reiterated a "hold" rating on shares of FirstService in a research note on Thursday, September 4th. Scotiabank upped their price objective on FirstService from $210.00 to $220.00 and gave the stock a "sector perform" rating in a research report on Wednesday, July 30th. Weiss Ratings reiterated a "buy (b-)" rating on shares of FirstService in a research note on Wednesday, October 8th. Finally, Wall Street Zen upgraded shares of FirstService from a "hold" rating to a "buy" rating in a research note on Sunday, September 7th. Two analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. According to MarketBeat.com, the company has an average rating of "Hold" and a consensus target price of $218.67.

FirstService Stock Performance

The company has a market cap of $7.81 billion, a PE ratio of 54.86 and a beta of 0.99. The firm's fifty day moving average is $195.00 and its 200 day moving average is $183.76. The company has a current ratio of 1.76, a quick ratio of 1.76 and a debt-to-equity ratio of 0.99.

FirstService (NASDAQ:FSV - Get Free Report) TSE: FSV last announced its earnings results on Thursday, July 24th. The financial services provider reported $1.71 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.45 by $0.26. FirstService had a net margin of 2.61% and a return on equity of 18.24%. The business had revenue of $1.42 billion for the quarter, compared to analyst estimates of $1.40 billion. During the same quarter last year, the business earned $1.36 earnings per share. The company's revenue for the quarter was up 9.1% compared to the same quarter last year. As a group, research analysts predict that FirstService Corporation will post 5.27 EPS for the current fiscal year.

FirstService Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Tuesday, October 7th. Investors of record on Tuesday, September 30th were given a dividend of $0.275 per share. This represents a $1.10 annualized dividend and a dividend yield of 0.6%. The ex-dividend date was Tuesday, September 30th. FirstService's payout ratio is presently 35.26%.

Hedge Funds Weigh In On FirstService

Several hedge funds and other institutional investors have recently modified their holdings of FSV. Mackenzie Financial Corp lifted its stake in shares of FirstService by 100.8% in the second quarter. Mackenzie Financial Corp now owns 1,475,463 shares of the financial services provider's stock worth $257,634,000 after buying an additional 740,583 shares in the last quarter. Norges Bank purchased a new stake in shares of FirstService in the second quarter valued at approximately $93,904,000. Picton Mahoney Asset Management purchased a new stake in shares of FirstService in the second quarter valued at approximately $56,029,000. Orbis Allan Gray Ltd grew its position in shares of FirstService by 18.8% in the first quarter. Orbis Allan Gray Ltd now owns 1,417,190 shares of the financial services provider's stock valued at $235,183,000 after purchasing an additional 224,125 shares in the last quarter. Finally, Brown Advisory Inc. purchased a new stake in shares of FirstService in the first quarter valued at approximately $30,523,000. 69.35% of the stock is owned by hedge funds and other institutional investors.

FirstService Company Profile

FirstService Corporation, together with its subsidiaries, provides residential property management and other essential property services to residential and commercial customers in the United States and Canada. It operates through two segments: FirstService Residential and FirstService Brands. The FirstService Residential segment offers services for private residential communities, such as condominiums, co-operatives, homeowner associations, master-planned communities, active adult and lifestyle communities, and various other residential developments.

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