Core & Main (NYSE:CNM) Reaches New 1-Year Low - What's Next?

Key Points

• Core & Main shares hit a new 52-week low, falling to $41.25 before last trading at approximately $42.07, below both the 50-day moving average of $44.73 and the 200-day average of $48.09.
• Despite recent analyst downgrades and neutral ratings, Wall Street’s consensus remains “Moderate Buy”, with seven Buy ratings, six Holds and an average price target of $56.70.
• The company slightly exceeded quarterly expectations, reporting $0.94 EPS versus $0.92 expected and $2.15 billion in revenue; revenue increased 2.5% year over year.

Core & Main, Inc. (NYSE:CNM - Get Free Report) reached a new 52-week low during trading on Wednesday . The stock traded as low as $41.25 and last traded at $42.0670, with a volume of 489156 shares traded. The stock had previously closed at $44.06.

Wall Street Analysts Forecast Growth

CNM has been the subject of several research reports. Citigroup decreased their price objective on shares of Core & Main from $54.00 to $53.00 and set a "neutral" rating for the company in a report on Thursday, June 11th. William Blair started coverage on shares of Core & Main in a research report on Thursday, July 23rd. They issued a "market perform" rating on the stock. The Goldman Sachs Group reaffirmed a "neutral" rating and issued a $24.00 target price on shares of Core & Main in a report on Thursday, June 11th. Northcoast Research downgraded Core & Main from a "buy" rating to a "neutral" rating in a research report on Wednesday, August 26th. Finally, Wall Street Zen lowered Core & Main from a "buy" rating to a "hold" rating in a report on Saturday, August 8th. Seven analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company's stock. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus price target of $56.70.

Core & Main Stock Performance

The firm's 50-day moving average price is $44.73 and its 200-day moving average price is $48.09. The company has a debt-to-equity ratio of 1.00, a current ratio of 2.31 and a quick ratio of 1.31. The stock has a market cap of $8.17 billion, a P/E ratio of 17.91, a PEG ratio of 1.53 and a beta of 0.91.

Core & Main (NYSE:CNM - Get Free Report) last announced its quarterly earnings results on Wednesday, September 9th. The company reported $0.94 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.92 by $0.02. Core & Main had a net margin of 5.87% and a return on equity of 26.17%. The company had revenue of $2.15 billion for the quarter, compared to the consensus estimate of $2.14 billion. During the same period in the previous year, the firm posted $0.87 EPS. Core & Main's revenue for the quarter was up 2.5% compared to the same quarter last year. Sell-side analysts expect that Core & Main, Inc. will post 3.08 earnings per share for the current fiscal year.

Insider Activity

In other news, Director James Hope bought 2,067 shares of the stock in a transaction dated Monday, July 6th. The stock was purchased at an average cost of $46.01 per share, for a total transaction of $95,102.67. Following the transaction, the director owned 11,805 shares of the company's stock, valued at $543,148.05. The trade was a 21.23% increase in their ownership of the stock. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. 1.51% of the stock is owned by company insiders.

Hedge Funds Weigh In On Core & Main

A number of institutional investors and hedge funds have recently made changes to their positions in CNM. Deutsche Bank AG lifted its stake in shares of Core & Main by 1.1% during the 4th quarter. Deutsche Bank AG now owns 17,859 shares of the company's stock worth $928,000 after acquiring an additional 190 shares during the last quarter. Fifth Third Wealth Advisors LLC increased its stake in shares of Core & Main by 4.8% during the first quarter. Fifth Third Wealth Advisors LLC now owns 5,726 shares of the company's stock valued at $283,000 after buying an additional 261 shares during the period. EverSource Wealth Advisors LLC increased its stake in shares of Core & Main by 145.4% during the second quarter. EverSource Wealth Advisors LLC now owns 454 shares of the company's stock valued at $27,000 after buying an additional 269 shares during the period. State of Michigan Retirement System raised its holdings in shares of Core & Main by 0.7% in the first quarter. State of Michigan Retirement System now owns 45,400 shares of the company's stock valued at $2,243,000 after acquiring an additional 300 shares in the last quarter. Finally, Wilmington Savings Fund Society FSB raised its holdings in shares of Core & Main by 47.8% in the third quarter. Wilmington Savings Fund Society FSB now owns 961 shares of the company's stock valued at $52,000 after acquiring an additional 311 shares in the last quarter. 94.19% of the stock is owned by hedge funds and other institutional investors.

About Core & Main

Core & Main, Inc NYSE: CNM is a leading distributor of water, sewer, storm drainage and fire protection products across North America. The company's product portfolio includes valves, hydrants, pipe and fittings, meters, couplings and other essential components that support municipal, industrial and environmental infrastructure projects. By combining a comprehensive inventory with logistics and technical support, Core & Main helps customers address complex water system and distribution challenges.

With more than 300 branch locations and over 3,500 employees, Core & Main serves a diverse customer base that includes municipalities, contractors, engineers and utility providers.

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