SiteOne Landscape Supply (NYSE:SITE) Shares Gap Down - What's Next?

Key Points

• SiteOne shares gapped down from a previous close of $98.10 to open at $94.21, later trading around $95.22.
• Analyst sentiment is mixed: the stock has an average “Hold” rating and a consensus price target of $135.27, with recent downgrades from Weiss Ratings and Zacks Research offset by Deutsche Bank’s upgrade to “Buy.”
• The company’s latest quarterly results missed expectations, reporting EPS of $3.14 versus $3.36 expected and revenue of $1.53 billion versus $1.54 billion forecast, although revenue increased 4.7% year over year.

SiteOne Landscape Supply, Inc. (NYSE:SITE - Get Free Report) gapped down before the market opened on Thursday . The stock had previously closed at $98.10, but opened at $94.21. SiteOne Landscape Supply shares last traded at $95.22, with a volume of 22,890 shares traded.

Wall Street Analyst Weigh In

SITE has been the topic of several research analyst reports. Weiss Ratings downgraded SiteOne Landscape Supply from a "hold (c-)" rating to a "sell (d+)" rating in a research note on Monday. Deutsche Bank Aktiengesellschaft upgraded SiteOne Landscape Supply from a "hold" rating to a "buy" rating and set a $160.00 target price on the stock in a research note on Thursday, April 30th. Stifel Nicolaus reaffirmed a "hold" rating and set a $100.00 price target (down from $153.00) on shares of SiteOne Landscape Supply in a research report on Thursday, July 30th. Zacks Research downgraded SiteOne Landscape Supply from a "hold" rating to a "strong sell" rating in a research note on Monday, June 22nd. Finally, Barclays decreased their price objective on SiteOne Landscape Supply from $129.00 to $108.00 and set an "equal weight" rating for the company in a report on Thursday, July 30th. Seven analysts have rated the stock with a Buy rating, five have given a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat.com, the company has an average rating of "Hold" and an average price target of $135.27.

SiteOne Landscape Supply Stock Performance

The company has a debt-to-equity ratio of 0.36, a quick ratio of 1.01 and a current ratio of 2.30. The company's 50-day moving average price is $104.39 and its two-hundred day moving average price is $122.21. The stock has a market cap of $4.18 billion, a PE ratio of 26.25, a PEG ratio of 1.38 and a beta of 1.35.

SiteOne Landscape Supply (NYSE:SITE - Get Free Report) last issued its earnings results on Wednesday, July 29th. The industrial products company reported $3.14 EPS for the quarter, missing analysts' consensus estimates of $3.36 by ($0.22). SiteOne Landscape Supply had a return on equity of 9.76% and a net margin of 3.41%.The business had revenue of $1.53 billion during the quarter, compared to analysts' expectations of $1.54 billion. During the same quarter in the previous year, the business earned $2.86 EPS. SiteOne Landscape Supply's revenue for the quarter was up 4.7% compared to the same quarter last year. On average, equities research analysts forecast that SiteOne Landscape Supply, Inc. will post 3.93 EPS for the current year.

Insider Activity

In other SiteOne Landscape Supply news, Director Fred M. Diaz sold 562 shares of the firm's stock in a transaction dated Thursday, May 28th. The shares were sold at an average price of $112.52, for a total value of $63,236.24. Following the completion of the sale, the director directly owned 11,267 shares in the company, valued at $1,267,762.84. This trade represents a 4.75% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Doug Black acquired 8,000 shares of the business's stock in a transaction on Tuesday, August 4th. The shares were purchased at an average cost of $102.03 per share, for a total transaction of $816,240.00. Following the completion of the transaction, the chief executive officer owned 8,000 shares in the company, valued at approximately $816,240. This represents a ∞ increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Company insiders own 2.10% of the company's stock.

Institutional Trading of SiteOne Landscape Supply

A number of hedge funds and other institutional investors have recently modified their holdings of the business. Bamco Inc. NY purchased a new position in SiteOne Landscape Supply during the second quarter valued at approximately $232,115,000. BlackRock Inc. purchased a new stake in shares of SiteOne Landscape Supply in the second quarter worth $221,355,000. Jupiter Topco LLC purchased a new stake in shares of SiteOne Landscape Supply in the second quarter worth $59,521,000. Amundi bought a new stake in shares of SiteOne Landscape Supply during the 3rd quarter valued at $59,763,000. Finally, AQR Capital Management LLC raised its position in shares of SiteOne Landscape Supply by 171.0% during the 4th quarter. AQR Capital Management LLC now owns 691,558 shares of the industrial products company's stock valued at $86,140,000 after purchasing an additional 436,376 shares during the period.

About SiteOne Landscape Supply

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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