SiteOne Landscape Supply (NYSE:SITE) Shares Down 11.3% After Earnings Miss

Key Points

• Shares plunged 11.3% intraday after SiteOne reported (‑$0.60) EPS versus analysts' (‑$0.33) (a $0.27 miss) and revenue of $940.1M versus $984.9M expected; the stock fell from $142.94 to as low as $123.96 with mid‑day volume ~383,016 (about 41% below average).
• Analyst sentiment is mixed: four Buys and seven Holds result in an average consensus rating of "Hold" with a $163.67 target, though some firms (RBC, Truist) have raised targets (up to $200) while UBS initiated at neutral with a $140 target.
• Corporate and financial notes: EVP Eric J. Elema sold 1,765 shares at about $158, reducing his position ~37.8% (insiders own ~2.1%), and the company shows a net margin of 3.23%, ROE of 9.28% and a market cap of $5.43B (P/E ~36.6).

Shares of SiteOne Landscape Supply, Inc. (NYSE:SITE - Get Free Report) dropped 11.3% during mid-day trading on Wednesday following a dissappointing earnings announcement. The stock traded as low as $123.96 and last traded at $126.8050. Approximately 383,016 shares traded hands during mid-day trading, a decline of 41% from the average daily volume of 650,487 shares. The stock had previously closed at $142.94.

The industrial products company reported ($0.60) earnings per share for the quarter, missing analysts' consensus estimates of ($0.33) by ($0.27). SiteOne Landscape Supply had a net margin of 3.23% and a return on equity of 9.28%. The business had revenue of $940.10 million during the quarter, compared to analysts' expectations of $984.89 million. During the same period in the prior year, the firm posted ($0.61) EPS. SiteOne Landscape Supply's revenue for the quarter was up .1% compared to the same quarter last year.

Analyst Upgrades and Downgrades

SITE has been the topic of a number of recent analyst reports. Weiss Ratings reaffirmed a "hold (c-)" rating on shares of SiteOne Landscape Supply in a report on Wednesday, January 21st. Zacks Research upgraded shares of SiteOne Landscape Supply from a "strong sell" rating to a "hold" rating in a research report on Friday, February 13th. UBS Group initiated coverage on shares of SiteOne Landscape Supply in a research note on Friday, April 10th. They set a "neutral" rating and a $140.00 price target on the stock. Royal Bank Of Canada raised their price objective on shares of SiteOne Landscape Supply from $151.00 to $171.00 and gave the company an "outperform" rating in a research note on Thursday, February 12th. Finally, Truist Financial boosted their price objective on shares of SiteOne Landscape Supply from $165.00 to $200.00 and gave the stock a "buy" rating in a report on Wednesday, February 11th. Four investment analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the stock. According to data from MarketBeat.com, the company has an average rating of "Hold" and a consensus target price of $163.67.

Insider Buying and Selling at SiteOne Landscape Supply

In other news, EVP Eric J. Elema sold 1,765 shares of SiteOne Landscape Supply stock in a transaction on Friday, February 13th. The stock was sold at an average price of $158.01, for a total transaction of $278,887.65. Following the completion of the transaction, the executive vice president owned 2,911 shares of the company's stock, valued at $459,967.11. The trade was a 37.75% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. 2.10% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On SiteOne Landscape Supply

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Man Group plc grew its position in shares of SiteOne Landscape Supply by 0.4% in the second quarter. Man Group plc now owns 22,338 shares of the industrial products company's stock valued at $2,702,000 after purchasing an additional 86 shares during the last quarter. Whittier Trust Co. raised its position in shares of SiteOne Landscape Supply by 72.7% during the 1st quarter. Whittier Trust Co. now owns 209 shares of the industrial products company's stock worth $27,000 after purchasing an additional 88 shares during the last quarter. State of New Jersey Common Pension Fund D lifted its stake in SiteOne Landscape Supply by 0.5% in the 4th quarter. State of New Jersey Common Pension Fund D now owns 16,928 shares of the industrial products company's stock valued at $2,109,000 after buying an additional 89 shares in the last quarter. HM Payson & Co. lifted its stake in SiteOne Landscape Supply by 32.2% in the 3rd quarter. HM Payson & Co. now owns 398 shares of the industrial products company's stock valued at $51,000 after buying an additional 97 shares in the last quarter. Finally, NewEdge Advisors LLC grew its holdings in SiteOne Landscape Supply by 36.6% during the 1st quarter. NewEdge Advisors LLC now owns 399 shares of the industrial products company's stock valued at $48,000 after buying an additional 107 shares during the last quarter.

SiteOne Landscape Supply Trading Down 14.3%

The company has a debt-to-equity ratio of 0.29, a quick ratio of 1.20 and a current ratio of 2.47. The business has a fifty day simple moving average of $137.33 and a 200 day simple moving average of $135.04. The stock has a market cap of $5.43 billion, a price-to-earnings ratio of 36.61, a PEG ratio of 1.72 and a beta of 1.57.

SiteOne Landscape Supply Company Profile

SiteOne Landscape Supply is a leading distributor of landscape supplies and irrigation equipment in North America. The company serves a broad range of customers, including independent landscapers, lawn and garden retailers, municipalities and other commercial landscape professionals. Its product portfolio spans irrigation and lighting controls, pipes and fittings, fertilizers and soils, lighting fixtures, hardscapes, outdoor lighting systems and related installation accessories.

In addition to core product lines, SiteOne offers agronomic services designed to optimize turf and plant health, as well as online tools and training resources to help customers plan, specify and manage projects more efficiently.

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