Core & Main (NYSE:CNM) Shares Gap Down on Analyst Downgrade

Key Points

• Core & Main shares fell 4.3% after opening at $44.85, down from the prior close of $47.44, following Robert W. Baird’s price-target cut from $57 to $54. Baird maintained its outperform rating.
• Analyst sentiment remains broadly positive: eight analysts rate the stock Buy and six rate it Hold, for a Moderate Buy consensus and a $54 consensus price target.
• The company’s latest reported quarter beat estimates, with earnings of $0.94 per share versus $0.91 expected and revenue of $2.15 billion versus $2.14 billion; revenue rose 2.5% year over year.

Core & Main, Inc. (NYSE:CNM - Get Free Report) shares gapped down before the market opened on Wednesday after Robert W. Baird lowered their price target on the stock from $57.00 to $54.00. The stock had previously closed at $47.44, but opened at $44.85. Robert W. Baird currently has an outperform rating on the stock. Core & Main shares last traded at $45.53, with a volume of 397,302 shares.

CNM has been the subject of a number of other reports. Zacks Research upgraded shares of Core & Main from a "strong sell" rating to a "hold" rating in a research report on Monday. Truist Financial lowered their price target on shares of Core & Main from $50.00 to $45.00 and set a "hold" rating on the stock in a research report on Thursday, September 10th. Jefferies Financial Group assumed coverage on shares of Core & Main in a research note on Wednesday, November 4th. They set a "buy" rating and a $53.00 price objective for the company. Royal Bank Of Canada dropped their price objective on shares of Core & Main from $60.00 to $57.00 and set an "outperform" rating for the company in a research note on Wednesday, October 7th. Finally, Citigroup cut their price objective on shares of Core & Main from $53.00 to $46.00 and set a "neutral" rating for the company in a report on Friday, September 11th. Eight investment analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company. According to MarketBeat.com, Core & Main currently has a consensus rating of "Moderate Buy" and a consensus target price of $54.00.

Institutional Investors Weigh In On Core & Main

Hedge funds have recently modified their holdings of the company. GW&K Investment Management LLC purchased a new position in Core & Main during the third quarter worth about $27,000. IFP Advisors Inc grew its stake in shares of Core & Main by 142.7% in the 3rd quarter. IFP Advisors Inc now owns 1,296 shares of the company's stock valued at $54,000 after buying an additional 762 shares during the period. Nisa Investment Advisors LLC increased its holdings in shares of Core & Main by 42.9% during the 3rd quarter. Nisa Investment Advisors LLC now owns 1,615 shares of the company's stock worth $67,000 after buying an additional 485 shares during the last quarter. EverSource Wealth Advisors LLC increased its holdings in shares of Core & Main by 42.3% during the 1st quarter. EverSource Wealth Advisors LLC now owns 2,389 shares of the company's stock worth $118,000 after buying an additional 710 shares during the last quarter. Finally, SkyView Investment Advisors LLC acquired a new stake in shares of Core & Main during the 2nd quarter worth approximately $145,000. Hedge funds and other institutional investors own 94.19% of the company's stock.

Core & Main Trading Down 4.3%

The stock has a market cap of $8.65 billion, a PE ratio of 18.69, a price-to-earnings-growth ratio of 2.00 and a beta of 0.91. The company has a debt-to-equity ratio of 1.16, a quick ratio of 1.51 and a current ratio of 2.47. The company's 50-day moving average price is $42.68 and its 200 day moving average price is $47.62.

Core & Main (NYSE:CNM - Get Free Report) last issued its quarterly earnings data on Wednesday, September 9th. The company reported $0.94 earnings per share for the quarter, topping the consensus estimate of $0.91 by $0.03. The company had revenue of $2.15 billion during the quarter, compared to analyst estimates of $2.14 billion. Core & Main had a return on equity of 25.98% and a net margin of 5.96%. The firm's revenue for the quarter was up 2.5% compared to the same quarter last year. During the same period in the prior year, the business posted $0.87 earnings per share. On average, sell-side analysts forecast that Core & Main, Inc. will post 3.00 EPS for the current fiscal year.

Core & Main Company Profile

Core & Main, Inc. is a distributor of products and services used in water, wastewater, storm drainage, and fire protection infrastructure. Its customers include municipalities, water utilities, contractors, and other commercial and industrial organizations. The company offers products such as pipe, valves, fittings, hydrants, meters, and related supplies. It also provides services supporting infrastructure projects, including product fabrication and technical assistance. Based in St. Louis, Missouri, Core & Main serves customers across the United States through a network of branches.

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