Eagle Materials (NYSE:EXP) Reaches New 52-Week Low - Time to Sell?

Key Points

• Eagle Materials shares fell 2.7% to a new 52-week low of $166, well below their 50-day and 200-day moving averages of $193.63 and $202.12, respectively.
• Analyst sentiment remains cautious, with a consensus “Hold” rating from 10 analysts and an average price target of $212.78; several firms recently lowered their targets.
• The company’s latest quarter beat revenue expectations but missed on earnings per share, while it declared a quarterly dividend of $0.25, equivalent to a 0.6% annual yield.

Shares of Eagle Materials Inc (NYSE:EXP - Get Free Report) reached a new 52-week low on Wednesday. The stock traded as low as $166.00 and last traded at $166.0360, with a volume of 26384 shares trading hands. The stock had previously closed at $171.54.

Wall Street Analyst Weigh In

A number of research firms have commented on EXP. Zacks Research downgraded shares of Eagle Materials from a "strong-buy" rating to a "hold" rating in a research report on Monday, July 27th. Stephens lifted their price objective on shares of Eagle Materials from $225.00 to $230.00 and gave the company an "equal weight" rating in a report on Thursday, July 30th. Weiss Ratings reissued a "hold (c)" rating on shares of Eagle Materials in a research note on Friday, September 11th. Citigroup lowered their target price on Eagle Materials from $232.00 to $190.00 and set a "neutral" rating for the company in a report on Friday, October 2nd. Finally, DA Davidson dropped their target price on Eagle Materials from $220.00 to $207.00 and set a "neutral" rating on the stock in a research report on Monday, September 14th. Ten analysts have rated the stock with a Hold rating, Based on data from MarketBeat, the company currently has a consensus rating of "Hold" and an average target price of $212.78.

Eagle Materials Trading Down 2.7%

The company's 50 day simple moving average is $193.63 and its two-hundred day simple moving average is $202.12. The company has a quick ratio of 1.91, a current ratio of 3.23 and a debt-to-equity ratio of 1.17. The company has a market capitalization of $5.12 billion, a price-to-earnings ratio of 13.18 and a beta of 1.33.

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

Eagle Materials Announces Dividend

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

Insider Activity

In related news, SVP Tony Thompson sold 3,074 shares of the stock in a transaction that occurred on Monday, August 24th. The shares were sold at an average price of $203.96, for a total value of $626,973.04. Following the completion of the transaction, the senior vice president directly owned 10,142 shares of the company's stock, valued at $2,068,562.32. This trade represents a 23.26% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. 1.70% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Eagle Materials

Institutional investors and hedge funds have recently made changes to their positions in the stock. Moody National Bank Trust Division grew its holdings in shares of Eagle Materials by 18.6% during the third quarter. Moody National Bank Trust Division now owns 11,227 shares of the construction company's stock valued at $1,920,000 after buying an additional 1,757 shares during the last quarter. Central Pacific Bank Trust Division raised its stake in Eagle Materials by 28.6% in the 3rd quarter. Central Pacific Bank Trust Division now owns 1,078 shares of the construction company's stock worth $184,000 after acquiring an additional 240 shares during the last quarter. QRG Capital Management Inc. lifted its position in Eagle Materials by 11.8% during the 2nd quarter. QRG Capital Management Inc. now owns 1,447 shares of the construction company's stock worth $326,000 after acquiring an additional 153 shares during the period. Sequoia Financial Advisors LLC grew its stake in Eagle Materials by 4.8% during the 2nd quarter. Sequoia Financial Advisors LLC now owns 1,782 shares of the construction company's stock valued at $401,000 after purchasing an additional 82 shares during the last quarter. Finally, Engineers Gate Manager LP purchased a new stake in Eagle Materials during the 2nd quarter valued at about $515,000. 96.07% of the stock is currently owned by institutional investors and hedge funds.

Eagle Materials Company Profile

Eagle Materials Inc NYSE: EXP is a Dallas-based manufacturer of basic building materials used in residential, commercial and infrastructure construction. Its primary products include Portland cement, ready-mixed concrete, aggregates, gypsum wallboard and gypsum paperboard.

The company operates through businesses focused on cement, concrete and aggregates, and gypsum wallboard and paperboard. Its materials are sold primarily in the United States, with production and distribution operations serving markets across several regions, including the central, southern and southwestern parts of the country.

Eagle Materials traces its origins to the construction-materials operations formerly associated with Centex Corporation and became an independent, publicly traded company in 1994.

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