Wall Street Zen Downgrades Insteel Industries (NYSE:IIIN) to Sell

Key Points

• Wall Street Zen downgraded Insteel Industries (IIIN) from "hold" to "sell", joining other recent cuts (Zacks to "strong sell" and Weiss to a lower hold) and leaving the MarketBeat average rating at "Reduce."
• Insteel missed quarterly earnings sharply, reporting $0.27 EPS versus a $0.80 estimate while revenue rose 7.5% to $172.65 million; the stock trades near $26.32 with a $511 million market cap and a P/E of 12.07.

Insteel Industries (NYSE:IIIN - Get Free Report) was downgraded by analysts at Wall Street Zen from a "hold" rating to a "sell" rating in a report issued on Monday.

IIIN has been the subject of a number of other research reports. Zacks Research cut Insteel Industries from a "hold" rating to a "strong sell" rating in a research report on Monday, April 20th. Weiss Ratings cut Insteel Industries from a "hold (c)" rating to a "hold (c-)" rating in a research report on Wednesday, April 22nd. One equities research analyst has rated the stock with a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of "Reduce".

Insteel Industries Trading Down 0.3%

IIIN opened at $26.32 on Monday. The stock has a market cap of $511.32 million, a price-to-earnings ratio of 12.07, a PEG ratio of 1.67 and a beta of 0.53. Insteel Industries has a 1 year low of $24.35 and a 1 year high of $41.64. The stock has a fifty day moving average price of $32.54 and a 200 day moving average price of $32.68.

Insteel Industries (NYSE:IIIN - Get Free Report) last released its quarterly earnings data on Thursday, April 16th. The company reported $0.27 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.80 by ($0.53). The firm had revenue of $172.65 million for the quarter. Insteel Industries had a net margin of 6.16% and a return on equity of 11.72%. The company's revenue was up 7.5% on a year-over-year basis. During the same period last year, the firm posted $0.52 earnings per share. As a group, sell-side analysts forecast that Insteel Industries will post 1.32 earnings per share for the current fiscal year.

Insider Activity at Insteel Industries

In other news, COO Richard Wagner sold 1,679 shares of Insteel Industries stock in a transaction dated Thursday, February 26th. The stock was sold at an average price of $37.67, for a total value of $63,247.93. Following the transaction, the chief operating officer directly owned 40,000 shares in the company, valued at approximately $1,506,800. The trade was a 4.03% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Insiders own 6.20% of the company's stock.

Hedge Funds Weigh In On Insteel Industries

A number of institutional investors have recently made changes to their positions in IIIN. Algert Global LLC increased its stake in shares of Insteel Industries by 360.5% in the third quarter. Algert Global LLC now owns 166,514 shares of the company's stock worth $6,384,000 after purchasing an additional 130,354 shares during the period. Invesco Ltd. increased its stake in shares of Insteel Industries by 159.8% in the fourth quarter. Invesco Ltd. now owns 201,872 shares of the company's stock worth $6,393,000 after purchasing an additional 124,162 shares during the period. SG Capital Management LLC bought a new position in shares of Insteel Industries in the third quarter worth about $3,264,000. First Trust Advisors LP bought a new position in shares of Insteel Industries in the third quarter worth about $2,332,000. Finally, Vanguard Group Inc. increased its stake in shares of Insteel Industries by 4.2% in the third quarter. Vanguard Group Inc. now owns 1,397,496 shares of the company's stock worth $53,580,000 after purchasing an additional 55,712 shares during the period. 83.27% of the stock is currently owned by institutional investors.

Insteel Industries Company Profile

Insteel Industries, Inc is a leading manufacturer of steel wire reinforcing products used in concrete construction. The company specializes in the design, fabrication and distribution of welded-wire reinforcement, cut-and-bent reinforcement and related accessories for concrete walls, floors and columns. Its products are employed across residential, commercial and infrastructure projects, providing structural strength and dimensional stability in poured concrete applications.

Key product lines include truss mats—prefabricated, ladder-like assemblies of welded wire designed for rapid placement—and custom cut-and-bent wire assemblies that meet specific engineering requirements.

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