Insteel Industries (NYSE:IIIN) Shares Gap Up on Earnings Beat

Key Points

• Insteel Industries shares gapped up after the company reported quarterly earnings that edged past Wall Street expectations, opening at $31.50 versus the prior close of $29.64.
• The company posted EPS of $0.46, topping analyst estimates by $0.01, on revenue of $197.66 million. That was below the prior-year quarter’s $0.78 EPS, though profitability remained solid with a 6.16% net margin.
• Insteel also announced a quarterly dividend of $0.03 per share, equal to a 0.4% annual yield. Meanwhile, analyst sentiment remains cautious, with the stock holding an overall “Hold” rating.

Insteel Industries, Inc. (NYSE:IIIN - Get Free Report) shares gapped up prior to trading on Thursday after the company announced better than expected quarterly earnings. The stock had previously closed at $29.64, but opened at $31.50. Insteel Industries shares last traded at $31.73, with a volume of 35,303 shares traded.

The company reported $0.46 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.45 by $0.01. The firm had revenue of $197.66 million during the quarter. Insteel Industries had a return on equity of 11.72% and a net margin of 6.16%.During the same period in the previous year, the business posted $0.78 earnings per share.

Insteel Industries Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Friday, June 26th. Shareholders of record on Friday, June 12th were given a $0.03 dividend. The ex-dividend date was Friday, June 12th. This represents a $0.12 annualized dividend and a yield of 0.4%. Insteel Industries's payout ratio is 5.50%.

Wall Street Analyst Weigh In

A number of research firms have recently issued reports on IIIN. Zacks Research upgraded shares of Insteel Industries from a "strong sell" rating to a "hold" rating in a report on Tuesday, June 16th. Weiss Ratings downgraded Insteel Industries from a "hold (c)" rating to a "hold (c-)" rating in a report on Wednesday, April 22nd. Finally, Wall Street Zen lowered Insteel Industries from a "hold" rating to a "sell" rating in a report on Monday, May 4th. Two equities research analysts have rated the stock with a Hold rating, According to MarketBeat, the stock presently has an average rating of "Hold".

Institutional Trading of Insteel Industries

Hedge funds have recently modified their holdings of the company. Advisory Services Network LLC bought a new position in shares of Insteel Industries during the 3rd quarter worth about $26,000. GAMMA Investing LLC boosted its stake in Insteel Industries by 71.2% in the second quarter. GAMMA Investing LLC now owns 1,998 shares of the company's stock worth $60,000 after purchasing an additional 831 shares in the last quarter. BNP Paribas Financial Markets grew its holdings in Insteel Industries by 74.3% during the 2nd quarter. BNP Paribas Financial Markets now owns 2,248 shares of the company's stock worth $84,000 after acquiring an additional 958 shares during the last quarter. Quarry LP bought a new stake in shares of Insteel Industries during the third quarter valued at approximately $89,000. Finally, Smartleaf Asset Management LLC boosted its position in Insteel Industries by 30.2% in the 2nd quarter. Smartleaf Asset Management LLC now owns 2,516 shares of the company's stock valued at $95,000 after buying an additional 583 shares during the last quarter. Institutional investors own 83.27% of the company's stock.

Insteel Industries Stock Up 6.5%

The firm has a fifty day moving average of $28.29 and a 200-day moving average of $31.43. The firm has a market cap of $613.33 million, a P/E ratio of 14.48, a PEG ratio of 1.87 and a beta of 0.52.

About Insteel Industries

Insteel Industries, Inc is a leading manufacturer of steel wire reinforcing products used in concrete construction. The company specializes in the design, fabrication and distribution of welded-wire reinforcement, cut-and-bent reinforcement and related accessories for concrete walls, floors and columns. Its products are employed across residential, commercial and infrastructure projects, providing structural strength and dimensional stability in poured concrete applications.

Key product lines include truss mats—prefabricated, ladder-like assemblies of welded wire designed for rapid placement—and custom cut-and-bent wire assemblies that meet specific engineering requirements.

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