UFP Industries (NASDAQ:UFPI) Shares Gap Down After Earnings Miss

Key Points

• Gapped down after Q1 results—UFP shares opened near $87.63 after reporting $0.89 EPS vs. $1.15 consensus and $1.46B revenue (vs. $1.52B est.), with revenue down 8.4% year‑over‑year.
• The company declared a quarterly dividend of $0.36 ($1.44 annualized) with an ex‑dividend/record date of June 1 and payment on June 15, implying a ~1.6% yield and a payout ratio of about 28.9%.
• Analysts are mixed but on average rate the stock a Hold with a $107 consensus price target; shares trade at a PE of ~17.7 and a market cap of roughly $5.0B, with institutional ownership around 81.8%.

UFP Industries, Inc. (NASDAQ:UFPI - Get Free Report) gapped down before the market opened on Thursday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $92.94, but opened at $87.63. UFP Industries shares last traded at $88.5050, with a volume of 77,439 shares trading hands.

The construction company reported $0.89 earnings per share for the quarter, missing the consensus estimate of $1.15 by ($0.26). UFP Industries had a return on equity of 9.27% and a net margin of 4.66%.The business had revenue of $1.46 billion during the quarter, compared to analyst estimates of $1.52 billion. During the same quarter last year, the company posted $1.30 EPS. UFP Industries's quarterly revenue was down 8.4% compared to the same quarter last year.

UFP Industries Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Monday, June 15th. Stockholders of record on Monday, June 1st will be paid a dividend of $0.36 per share. The ex-dividend date of this dividend is Monday, June 1st. This represents a $1.44 dividend on an annualized basis and a dividend yield of 1.6%. UFP Industries's dividend payout ratio (DPR) is presently 28.86%.

Analyst Upgrades and Downgrades

A number of brokerages have recently commented on UFPI. BMO Capital Markets reaffirmed a "market perform" rating and set a $108.00 price objective (down from $112.00) on shares of UFP Industries in a research note on Monday, April 20th. DA Davidson dropped their price objective on shares of UFP Industries from $112.00 to $110.00 and set a "buy" rating on the stock in a research note on Tuesday, March 10th. Weiss Ratings reaffirmed a "hold (c-)" rating on shares of UFP Industries in a research note on Tuesday, January 27th. Finally, Zacks Research cut shares of UFP Industries from a "hold" rating to a "strong sell" rating in a research note on Tuesday, March 17th. One research analyst has rated the stock with a Buy rating, four have assigned a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat, the company currently has an average rating of "Hold" and a consensus price target of $107.00.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. IAG Wealth Partners LLC purchased a new position in UFP Industries in the 1st quarter valued at $28,000. Oregon Public Employees Retirement Fund lifted its holdings in UFP Industries by 2.9% in the 1st quarter. Oregon Public Employees Retirement Fund now owns 11,997 shares of the construction company's stock valued at $1,105,000 after purchasing an additional 336 shares in the last quarter. QRG Capital Management Inc. raised its holdings in shares of UFP Industries by 20.2% during the 1st quarter. QRG Capital Management Inc. now owns 11,285 shares of the construction company's stock worth $1,040,000 after acquiring an additional 1,898 shares during the period. World Investment Advisors raised its holdings in shares of UFP Industries by 5.8% during the 1st quarter. World Investment Advisors now owns 3,171 shares of the construction company's stock worth $292,000 after acquiring an additional 175 shares during the period. Finally, Y Intercept Hong Kong Ltd raised its holdings in shares of UFP Industries by 18.8% during the 1st quarter. Y Intercept Hong Kong Ltd now owns 38,200 shares of the construction company's stock worth $3,519,000 after acquiring an additional 6,058 shares during the period. Hedge funds and other institutional investors own 81.81% of the company's stock.

UFP Industries Stock Performance

The company has a current ratio of 4.59, a quick ratio of 3.13 and a debt-to-equity ratio of 0.07. The firm has a fifty day moving average price of $95.03 and a 200 day moving average price of $96.30. The firm has a market cap of $5.02 billion, a PE ratio of 17.66 and a beta of 1.44.

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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