Quanex Building Products (NYSE:NX) Stock Falls 8.6% - Should You Sell?

Key Points

• Quanex shares fell 8.6% in Thursday’s mid-day trading, reaching $19.1950, on volume 45% below its average.
• Analyst sentiment is mixed but averages to a Hold, with a consensus price target of $28.00; one analyst rates the stock Buy and two rate it Hold.
• The company beat quarterly expectations, reporting EPS of $0.79 versus $0.66 expected and revenue of $501.85 million versus $497.51 million expected. It also pays an annualized dividend of $0.32 per share, a 1.7% yield.

Quanex Building Products Corporation (NYSE:NX - Get Free Report)'s stock price dropped 8.6% during mid-day trading on Thursday. The company traded as low as $19.48 and last traded at $19.1950. 248,278 shares changed hands during mid-day trading, a decline of 45% from the average daily volume of 451,405 shares. The stock had previously closed at $20.99.

Analyst Ratings Changes

Several brokerages have recently commented on NX. Zacks Research upgraded Quanex Building Products from a "strong sell" rating to a "hold" rating in a research note on Friday, July 17th. Benchmark reiterated a "buy" rating on shares of Quanex Building Products in a research report on Thursday, August 27th. Wall Street Zen upgraded Quanex Building Products from a "buy" rating to a "strong-buy" rating in a report on Saturday, October 31st. Finally, Weiss Ratings upgraded shares of Quanex Building Products from a "sell (d)" rating to a "hold (c)" rating in a report on Tuesday, September 8th. One equities research analyst has rated the stock with a Buy rating and two have assigned a Hold rating to the company. According to data from MarketBeat, the stock currently has an average rating of "Hold" and an average price target of $28.00.

Quanex Building Products Price Performance

The company has a current ratio of 2.23, a quick ratio of 1.21 and a debt-to-equity ratio of 0.85. The company has a fifty day moving average price of $20.10 and a two-hundred day moving average price of $19.20. The firm has a market cap of $881.69 million, a P/E ratio of 19.42, a PEG ratio of 0.74 and a beta of 0.95.

Quanex Building Products (NYSE:NX - Get Free Report) last announced its earnings results on Thursday, September 3rd. The construction company reported $0.79 EPS for the quarter, topping the consensus estimate of $0.66 by $0.13. Quanex Building Products had a net margin of 2.43% and a return on equity of 11.61%. The firm had revenue of $501.85 million for the quarter, compared to the consensus estimate of $497.51 million. During the same period last year, the company posted ($6.04) EPS. Equities analysts anticipate that Quanex Building Products Corporation will post 1.82 earnings per share for the current year.

Quanex Building Products Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Wednesday, September 30th. Stockholders of record on Tuesday, September 15th were issued a $0.08 dividend. This represents a $0.32 dividend on an annualized basis and a dividend yield of 1.7%. The ex-dividend date was Tuesday, September 15th. Quanex Building Products's payout ratio is 32.32%.

Insider Transactions at Quanex Building Products

In other Quanex Building Products news, SVP Paul Cornett sold 5,500 shares of the business's stock in a transaction that occurred on Monday, November 2nd. The stock was sold at an average price of $21.32, for a total value of $117,260.00. Following the sale, the senior vice president owned 70,074 shares in the company, valued at approximately $1,493,977.68. The trade was a 7.28% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 1.92% of the company's stock.

Hedge Funds Weigh In On Quanex Building Products

Several hedge funds have recently made changes to their positions in the business. Integrated Wealth Concepts LLC bought a new stake in shares of Quanex Building Products in the second quarter worth $26,000. Public Employees Retirement System of Ohio bought a new position in shares of Quanex Building Products in the 2nd quarter valued at about $36,000. GAMMA Investing LLC increased its position in shares of Quanex Building Products by 63.6% in the third quarter. GAMMA Investing LLC now owns 5,227 shares of the construction company's stock valued at $99,000 after acquiring an additional 2,032 shares during the last quarter. Allworth Financial LP acquired a new stake in shares of Quanex Building Products in the second quarter valued at about $51,000. Finally, Byrne Asset Management LLC increased its position in shares of Quanex Building Products by 58.5% in the second quarter. Byrne Asset Management LLC now owns 8,290 shares of the construction company's stock valued at $154,000 after acquiring an additional 3,060 shares during the last quarter. 97.48% of the stock is owned by institutional investors.

About Quanex Building Products

Quanex Building Products Corporation is a manufacturer of components used in residential and commercial building products. Its offerings serve window, door, and cabinet makers, with products that include window and door components, screens, hardware, seals and weatherstripping, insulated-glass components, and cabinet doors and related parts. The company sells to manufacturers and other customers in the building-products supply chain. Its operations serve markets in North America and internationally, providing components used in both new construction and renovation projects.

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