Janus International Group (NYSE:JBI) Trading 14.3% Higher After Earnings Beat

Key Points

• Janus International Group shares surged by 14.3% after reporting earnings of $0.20 per share, surpassing analysts' expectations of $0.12.
• The company has initiated a stock buyback plan worth $75 million, indicating that its board believes the stock is undervalued.
• Analysts have raised the price target for Janus International Group from $9.00 to $10.00, maintaining an "overweight" rating while the stock has an average rating of "Hold."

Janus International Group, Inc. (NYSE:JBI - Get Free Report) shot up 14.3% during mid-day trading on Thursday following a stronger than expected earnings report. The stock traded as high as $9.85 and last traded at $9.93. 904,282 shares were traded during mid-day trading, a decline of 34% from the average session volume of 1,360,985 shares. The stock had previously closed at $8.68.

The company reported $0.20 EPS for the quarter, beating the consensus estimate of $0.15 by $0.05. Janus International Group had a net margin of 4.85% and a return on equity of 13.10%. The firm had revenue of $228.10 million during the quarter, compared to analysts' expectations of $216.99 million. During the same quarter last year, the business earned $0.21 earnings per share. The business's revenue for the quarter was down 8.2% compared to the same quarter last year.

Janus International Group announced that its Board of Directors has approved a stock buyback plan on Thursday, May 15th that authorizes the company to repurchase $75.00 million in shares. This repurchase authorization authorizes the company to reacquire up to 6.2% of its stock through open market purchases. Stock repurchase plans are usually a sign that the company's leadership believes its shares are undervalued.

Analyst Ratings Changes

JBI has been the subject of a number of research reports. UBS Group lifted their target price on shares of Janus International Group from $9.00 to $10.00 and gave the stock a "neutral" rating in a research report on Friday. Wall Street Zen upgraded shares of Janus International Group from a "hold" rating to a "buy" rating in a research report on Saturday. Finally, KeyCorp lifted their target price on shares of Janus International Group from $10.00 to $12.00 and gave the stock an "overweight" rating in a research report on Friday. Three investment analysts have rated the stock with a hold rating and two have given a buy rating to the company's stock. According to MarketBeat.com, the company has a consensus rating of "Hold" and a consensus price target of $9.83.

Hedge Funds Weigh In On Janus International Group

A number of institutional investors have recently modified their holdings of JBI. LPL Financial LLC raised its position in shares of Janus International Group by 5.4% in the fourth quarter. LPL Financial LLC now owns 35,829 shares of the company's stock valued at $263,000 after buying an additional 1,839 shares during the last quarter. Geode Capital Management LLC grew its holdings in Janus International Group by 0.6% in the fourth quarter. Geode Capital Management LLC now owns 3,232,960 shares of the company's stock valued at $23,768,000 after purchasing an additional 17,750 shares during the period. Wells Fargo & Company MN grew its holdings in Janus International Group by 39.6% in the fourth quarter. Wells Fargo & Company MN now owns 78,580 shares of the company's stock valued at $578,000 after purchasing an additional 22,310 shares during the period. Envestnet Asset Management Inc. grew its holdings in Janus International Group by 7.7% in the fourth quarter. Envestnet Asset Management Inc. now owns 121,644 shares of the company's stock valued at $894,000 after purchasing an additional 8,660 shares during the period. Finally, Federated Hermes Inc. grew its holdings in Janus International Group by 109.3% in the fourth quarter. Federated Hermes Inc. now owns 4,798 shares of the company's stock valued at $35,000 after purchasing an additional 2,506 shares during the period. Institutional investors and hedge funds own 88.78% of the company's stock.

Janus International Group Trading Down 0.8%

The business's fifty day moving average is $8.60 and its 200-day moving average is $8.03. The stock has a market capitalization of $1.37 billion, a PE ratio of 31.40 and a beta of 1.25. The company has a quick ratio of 2.26, a current ratio of 2.61 and a debt-to-equity ratio of 1.00.

About Janus International Group

Janus International Group, Inc manufacturers and supplies turn-key self-storage, and commercial and industrial building solutions in North America and internationally. The company offers roll up and swing doors, hallway systems, relocatable storage moveable additional storage structures units, and other solutions.