James Hardie Industries PLC. (NYSE:JHX) Shares Shorted: Short Interest Up 70.5% in September

Key Points

• Short interest surged 70.5% in September to 25.9 million shares, representing about 4.5% of James Hardie’s outstanding shares and 1.4 days to cover.
• JHX shares rose 5.5% to $25.94, while the company reported quarterly revenue of $1.47 billion and EPS of $0.36, exceeding analyst estimates; revenue increased 63.9% year over year.
• Analyst sentiment remains broadly positive, with 10 Buy ratings, one Hold, and one Sell, producing a “Moderate Buy” consensus and an average price target of $33.89.

James Hardie Industries PLC. (NYSE:JHX - Get Free Report) was the target of a significant increase in short interest in September. As of September 30th, there was short interest totaling 25,901,156 shares, an increase of 70.5% from the September 15th total of 15,189,864 shares. Approximately 4.5% of the shares of the company are sold short. Based on an average daily trading volume, of 18,436,803 shares, the days-to-cover ratio is currently 1.4 days.

James Hardie Industries Stock Up 5.5%

Shares of JHX traded up $1.36 during mid-day trading on Thursday, hitting $25.94. 4,745,472 shares of the company traded hands, compared to its average volume of 7,748,204. The company has a market capitalization of $15.06 billion, a PE ratio of 103.70, a price-to-earnings-growth ratio of 2.41 and a beta of 1.79. The company has a quick ratio of 1.03, a current ratio of 1.59 and a debt-to-equity ratio of 0.66. The business has a 50 day moving average of $27.96 and a 200 day moving average of $24.75. James Hardie Industries has a 1-year low of $16.46 and a 1-year high of $31.43.

James Hardie Industries (NYSE:JHX - Get Free Report) last released its earnings results on Thursday, August 6th. The construction company reported $0.36 EPS for the quarter, topping analysts' consensus estimates of $0.32 by $0.04. James Hardie Industries had a net margin of 2.69% and a return on equity of 10.56%. The company had revenue of $1.47 billion during the quarter, compared to analysts' expectations of $1.42 billion. During the same period last year, the business earned $0.29 EPS. James Hardie Industries's revenue for the quarter was up 63.9% on a year-over-year basis. Equities research analysts anticipate that James Hardie Industries will post 1.24 EPS for the current year.

Analyst Upgrades and Downgrades

A number of analysts have issued reports on the stock. Zacks Research downgraded shares of James Hardie Industries from a "hold" rating to a "strong sell" rating in a report on Tuesday, October 6th. Robert W. Baird decreased their target price on shares of James Hardie Industries from $34.00 to $32.00 and set an "outperform" rating on the stock in a research report on Tuesday. Stephens increased their price target on shares of James Hardie Industries from $33.00 to $34.00 and gave the company an "overweight" rating in a report on Friday, August 7th. Barclays upgraded James Hardie Industries from an "equal weight" rating to an "overweight" rating and lifted their price target for the stock from $26.00 to $35.00 in a research report on Monday, August 10th. Finally, Melius Research initiated coverage on James Hardie Industries in a research report on Tuesday, October 6th. They set a "buy" rating and a $36.00 target price on the stock. Ten investment analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus target price of $33.89.

Institutional Investors Weigh In On James Hardie Industries

Large investors have recently made changes to their positions in the stock. Breakwater Capital Group lifted its holdings in James Hardie Industries by 45.1% in the third quarter. Breakwater Capital Group now owns 15,135 shares of the construction company's stock valued at $383,000 after acquiring an additional 4,705 shares during the period. GAMMA Investing LLC grew its stake in shares of James Hardie Industries by 21.9% during the 3rd quarter. GAMMA Investing LLC now owns 4,384 shares of the construction company's stock worth $111,000 after purchasing an additional 787 shares during the period. Green Alpha Advisors LLC grew its stake in shares of James Hardie Industries by 61.9% during the 3rd quarter. Green Alpha Advisors LLC now owns 33,763 shares of the construction company's stock worth $855,000 after purchasing an additional 12,912 shares during the period. SkyView Investment Advisors LLC purchased a new position in shares of James Hardie Industries during the 2nd quarter valued at approximately $196,000. Finally, The Manufacturers Life Insurance Company purchased a new position in shares of James Hardie Industries during the 2nd quarter valued at approximately $248,000. 7.96% of the stock is owned by hedge funds and other institutional investors.

About James Hardie Industries

James Hardie Industries plc is a building materials company that manufactures and markets fiber cement and fiber gypsum products. Its products are used primarily in residential and commercial construction, including exterior siding, trim, soffits, backer board, and interior wall and flooring applications.

The company sells products under brands that include Hardie, HardiePlank, HardiePanel, and HardieBacker. Its fiber cement products are designed to provide durability and resistance to moisture, fire, pests, and weathering, serving builders, contractors, architects, and homeowners.

James Hardie traces its origins to Australia in the late 19th century and has since expanded into an international building products company.

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