Eagle Materials (NYSE:EXP) Reaches New 12-Month Low - Should You Sell?

Key Points

• Eagle Materials shares fell to a new 52-week low of $171.30, well below their 50-day and 200-day moving averages of $197.75 and $202.66, respectively.
• Analyst sentiment is cautious: nine analysts rate the stock Hold and one rates it Sell, resulting in a consensus “Reduce” rating despite a $218.33 average price target.
• The company reported quarterly revenue above expectations but missed on earnings per share, while maintaining a quarterly dividend of $0.25, equivalent to a 0.6% yield.

Eagle Materials Inc (NYSE:EXP - Get Free Report) shares reached a new 52-week low during mid-day trading on Wednesday. The stock traded as low as $171.30 and last traded at $171.4950, with a volume of 53343 shares trading hands. The stock had previously closed at $173.58.

Wall Street Analyst Weigh In

Several research analysts have weighed in on EXP shares. Weiss Ratings reissued a "hold (c)" rating on shares of Eagle Materials in a report on Friday, September 11th. Wells Fargo & Company restated an "equal weight" rating and set a $196.00 price objective (down from $231.00) on shares of Eagle Materials in a research note on Wednesday, September 9th. Stephens boosted their target price on shares of Eagle Materials from $225.00 to $230.00 and gave the company an "equal weight" rating in a research note on Thursday, July 30th. Zacks Research downgraded shares of Eagle Materials from a "strong-buy" rating to a "hold" rating in a research report on Monday, July 27th. Finally, Citigroup downgraded Eagle Materials from a "neutral" rating to a "cautious" rating in a research note on Wednesday, September 9th. Nine equities research analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Reduce" and a consensus target price of $218.33.

Eagle Materials Stock Performance

The company has a debt-to-equity ratio of 1.17, a quick ratio of 1.91 and a current ratio of 3.23. The company has a market cap of $5.25 billion, a P/E ratio of 13.51 and a beta of 1.36. The firm has a 50 day moving average price of $197.75 and a 200-day moving average price of $202.66.

Eagle Materials (NYSE:EXP - Get Free Report) last released its quarterly earnings results on Wednesday, July 29th. The construction company reported $3.29 EPS for the quarter, missing analysts' consensus estimates of $3.37 by ($0.08). Eagle Materials had a net margin of 17.32% and a return on equity of 26.87%. The firm had revenue of $650.97 million during the quarter, compared to the consensus estimate of $620.35 million. During the same period in the prior year, the business earned $3.76 EPS. The company's revenue for the quarter was up 2.6% compared to the same quarter last year. On average, research analysts predict that Eagle Materials Inc will post 12.66 EPS for the current year.

Eagle Materials Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, October 13th. Stockholders of record on Monday, September 14th will be paid a $0.25 dividend. This represents a $1.00 annualized dividend and a dividend yield of 0.6%. The ex-dividend date is Monday, September 14th. Eagle Materials's payout ratio is currently 7.91%.

Insider Transactions at Eagle Materials

In other Eagle Materials news, SVP Tony Thompson sold 3,074 shares of the company's stock in a transaction dated Monday, August 24th. The shares were sold at an average price of $203.96, for a total transaction of $626,973.04. Following the sale, the senior vice president directly owned 10,142 shares of the company's stock, valued at approximately $2,068,562.32. This represents a 23.26% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. 1.70% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Eagle Materials

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. Fifth Third Bancorp raised its holdings in shares of Eagle Materials by 5,116.3% in the first quarter. Fifth Third Bancorp now owns 25,612 shares of the construction company's stock valued at $4,852,000 after purchasing an additional 25,121 shares during the last quarter. Squarepoint Ops LLC grew its holdings in shares of Eagle Materials by 87.2% in the 2nd quarter. Squarepoint Ops LLC now owns 15,356 shares of the construction company's stock valued at $3,455,000 after acquiring an additional 7,155 shares in the last quarter. Black Creek Investment Management Inc. acquired a new stake in shares of Eagle Materials in the fourth quarter valued at about $103,778,000. Bank of America Corp DE bought a new stake in Eagle Materials during the second quarter worth about $66,255,000. Finally, Redwood Investment Management LLC bought a new position in Eagle Materials in the first quarter valued at approximately $1,080,000. 96.07% of the stock is owned by institutional investors.

About Eagle Materials

Eagle Materials Inc NYSE: EXP is a U.S.-based manufacturer of essential building materials used in residential, commercial and infrastructure construction. The company produces and distributes cement, ready-mix concrete, crushed stone and sand, as well as gypsum wallboard.

Its cement business supplies materials for concrete production and construction projects, while its concrete and aggregates operations provide ready-mix concrete and construction aggregates. Through its American Gypsum operations, Eagle Materials manufactures gypsum wallboard used in interior walls and ceilings.

Headquartered in Dallas, Texas, Eagle Materials serves regional construction markets primarily across the United States, with operations concentrated in states including Texas, Colorado, Nevada and Oklahoma.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.