UFP Industries (NASDAQ:UFPI) Reaches New 1-Year Low on Analyst Downgrade

Key Points

• UFP Industries hit a new 52‑week low, trading as low as $83.58 (last $83.90) after DA Davidson cut its price target from $110 to $105 while maintaining a buy rating.
• The company missed quarterly estimates, reporting $0.89 EPS versus $1.15 expected and $1.46 billion in revenue versus $1.51 billion expected, with revenue down 8.4% year‑over‑year.
• Market consensus is a Hold with a $107.60 target; institutional investors own about 81.8% of the stock, and the firm declared a $0.36 quarterly dividend (1.7% yield, ex‑dividend June 1).

UFP Industries, Inc. (NASDAQ:UFPI - Get Free Report) reached a new 52-week low on Monday after DA Davidson lowered their price target on the stock from $110.00 to $105.00. DA Davidson currently has a buy rating on the stock. UFP Industries traded as low as $83.58 and last traded at $83.90, with a volume of 16643 shares. The stock had previously closed at $85.18.

A number of other brokerages also recently commented on UFPI. BMO Capital Markets reaffirmed a "market perform" rating and issued a $108.00 price objective (down from $112.00) on shares of UFP Industries in a research report on Monday, April 20th. Zacks Research downgraded UFP Industries from a "hold" rating to a "strong sell" rating in a research report on Tuesday, March 17th. Benchmark lowered their price objective on UFP Industries from $125.00 to $115.00 and set a "buy" rating for the company in a research report on Friday. Finally, Weiss Ratings reaffirmed a "hold (c-)" rating on shares of UFP Industries in a research report on Tuesday, January 27th. Two equities research analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat, UFP Industries currently has a consensus rating of "Hold" and a consensus target price of $107.60.

Institutional Investors Weigh In On UFP Industries

Institutional investors have recently added to or reduced their stakes in the company. IAG Wealth Partners LLC purchased a new stake in UFP Industries during the first quarter valued at about $28,000. Root Financial Partners LLC lifted its stake in shares of UFP Industries by 86.0% during the first quarter. Root Financial Partners LLC now owns 320 shares of the construction company's stock worth $29,000 after purchasing an additional 148 shares in the last quarter. Geneos Wealth Management Inc. lifted its stake in shares of UFP Industries by 54.8% during the second quarter. Geneos Wealth Management Inc. now owns 322 shares of the construction company's stock worth $32,000 after purchasing an additional 114 shares in the last quarter. Signaturefd LLC lifted its stake in shares of UFP Industries by 66.1% during the fourth quarter. Signaturefd LLC now owns 387 shares of the construction company's stock worth $35,000 after purchasing an additional 154 shares in the last quarter. Finally, Danske Bank A S lifted its stake in shares of UFP Industries by 300.0% during the fourth quarter. Danske Bank A S now owns 400 shares of the construction company's stock worth $36,000 after purchasing an additional 300 shares in the last quarter. Hedge funds and other institutional investors own 81.81% of the company's stock.

UFP Industries Stock Performance

The stock has a 50 day simple moving average of $94.61 and a 200 day simple moving average of $96.33. The company has a market cap of $4.77 billion, a price-to-earnings ratio of 18.32 and a beta of 1.29. The company has a quick ratio of 3.07, a current ratio of 4.64 and a debt-to-equity ratio of 0.07.

UFP Industries (NASDAQ:UFPI - Get Free Report) last issued its quarterly earnings data on Wednesday, April 29th. The construction company reported $0.89 EPS for the quarter, missing analysts' consensus estimates of $1.15 by ($0.26). The company had revenue of $1.46 billion for the quarter, compared to analyst estimates of $1.51 billion. UFP Industries had a return on equity of 8.50% and a net margin of 4.31%.The company's revenue for the quarter was down 8.4% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $1.30 EPS. As a group, analysts predict that UFP Industries, Inc. will post 5.11 EPS for the current year.

UFP Industries Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Monday, June 15th. Investors of record on Monday, June 1st will be paid a $0.36 dividend. The ex-dividend date is Monday, June 1st. This represents a $1.44 annualized dividend and a dividend yield of 1.7%. UFP Industries's payout ratio is 31.44%.

About UFP Industries

UFP Industries, Inc, founded in 1955 and headquartered in Grand Rapids, Michigan, designs, manufactures, and distributes a broad range of wood and wood-alternative products. The company operates through two primary segments: UFP Retail Solutions, which supplies building materials and components to home improvement retailers and lumber dealers, and UFP Distribution Solutions, which offers packaging, pallets, skids, and other industrial products for a variety of end markets. Its product portfolio includes treated and untreated lumber, engineered wood, decking, railing, fencing, vinyl sheets and profiles, and custom-designed packaging solutions.

With manufacturing facilities and distribution centers across the United States, Canada, Mexico and Europe, UFP Industries serves professional contractors, industrial customers, and do-it-yourself consumers.

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