Insteel Industries (NASDAQ:IIIN) Shares Gap Down on Disappointing Earnings

Key Points

• Insteel Industries experienced a significant drop in share price, opening at $36.00 after closing at $37.54, following disappointing earnings that reflected a $0.05 miss on EPS estimates.
• The company reported a 32.0% increase in quarterly revenue compared to the same period last year, but had a Net Margin of only 3.58%.
• Insteel Industries recently declared a quarterly dividend of $0.03 per share, with a payout ratio of 7.50% and a dividend yield of 0.4%.

Insteel Industries, Inc. (NASDAQ:IIIN - Get Free Report)'s share price gapped down before the market opened on Thursday following a weaker than expected earnings announcement. The stock had previously closed at $37.54, but opened at $36.00. Insteel Industries shares last traded at $32.11, with a volume of 118,302 shares traded.

The industrial products company reported $0.74 earnings per share for the quarter, missing analysts' consensus estimates of $0.79 by ($0.05). Insteel Industries had a return on equity of 5.91% and a net margin of 3.58%.The business's quarterly revenue was up 32.0% compared to the same quarter last year. During the same period in the prior year, the business earned $0.24 earnings per share.

Insteel Industries Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Friday, September 26th. Stockholders of record on Friday, September 12th were given a dividend of $0.03 per share. The ex-dividend date was Friday, September 12th. This represents a $0.12 annualized dividend and a dividend yield of 0.4%. Insteel Industries's dividend payout ratio is 7.50%.

Insiders Place Their Bets

In related news, SVP James R. York sold 3,000 shares of the stock in a transaction dated Friday, August 22nd. The stock was sold at an average price of $38.50, for a total transaction of $115,500.00. Following the completion of the sale, the senior vice president directly owned 9,443 shares in the company, valued at $363,555.50. This represents a 24.11% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. 6.00% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Insteel Industries

Institutional investors have recently bought and sold shares of the stock. Russell Investments Group Ltd. lifted its holdings in Insteel Industries by 85.3% in the 1st quarter. Russell Investments Group Ltd. now owns 72,268 shares of the industrial products company's stock worth $1,901,000 after buying an additional 33,264 shares during the period. Principal Financial Group Inc. lifted its holdings in Insteel Industries by 2.4% in the 1st quarter. Principal Financial Group Inc. now owns 96,847 shares of the industrial products company's stock worth $2,547,000 after buying an additional 2,244 shares during the period. Strs Ohio purchased a new stake in Insteel Industries in the 1st quarter worth approximately $466,000. CWM LLC lifted its holdings in Insteel Industries by 150.9% in the 1st quarter. CWM LLC now owns 4,744 shares of the industrial products company's stock worth $125,000 after buying an additional 2,853 shares during the period. Finally, Grace & White Inc. NY purchased a new stake in Insteel Industries in the 2nd quarter worth approximately $391,000. 83.27% of the stock is currently owned by hedge funds and other institutional investors.

Insteel Industries Trading Down 14.0%

The firm has a fifty day simple moving average of $37.99 and a two-hundred day simple moving average of $35.55. The firm has a market cap of $626.88 million, a PE ratio of 32.43, a PEG ratio of 1.81 and a beta of 0.79.

About Insteel Industries

Insteel Industries, Inc, together with its subsidiaries, manufactures and markets steel wire reinforcing products for concrete construction applications. The company offers prestressed concrete strand (PC strand) and welded wire reinforcement (WWR) products. Its PC strand is a seven-wire strand that is used to impart compression forces into precast concrete elements and structures providing reinforcement for bridges, parking decks, buildings, and other concrete structures.

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