XPEL (NASDAQ:XPEL) Cut to "Hold" at Wall Street Zen

Key Points

• Wall Street Zen has downgraded XPEL from a "buy" to a "hold" rating, indicating a shift in analyst sentiment towards the company's stock.
• XPEL reported a 13.5% year-over-year revenue increase with earnings per share of $0.59, exceeding analysts' expectations of $0.52.
• The company has authorized a $50 million share repurchase program, suggesting management believes its stock is undervalued.

Wall Street Zen cut shares of XPEL (NASDAQ:XPEL - Free Report) from a buy rating to a hold rating in a research note published on Saturday morning.

XPEL Stock Performance

Shares of XPEL stock traded up $2.52 during mid-day trading on Friday, hitting $37.19. 180,203 shares of the stock were exchanged, compared to its average volume of 210,992. The stock's fifty day simple moving average is $35.85 and its two-hundred day simple moving average is $34.52. The stock has a market capitalization of $1.03 billion, a price-to-earnings ratio of 21.13 and a beta of 1.83. XPEL has a 12-month low of $24.25 and a 12-month high of $47.23.

XPEL (NASDAQ:XPEL - Get Free Report) last announced its earnings results on Wednesday, August 6th. The company reported $0.59 earnings per share for the quarter, topping the consensus estimate of $0.52 by $0.07. XPEL had a net margin of 10.84% and a return on equity of 21.17%. The business had revenue of $124.71 million during the quarter, compared to the consensus estimate of $118.37 million. During the same quarter in the prior year, the firm earned $0.54 earnings per share. The business's quarterly revenue was up 13.5% compared to the same quarter last year. On average, research analysts expect that XPEL will post 1.73 earnings per share for the current fiscal year.

XPEL announced that its Board of Directors has authorized a stock repurchase program on Tuesday, May 6th that allows the company to buyback $50.00 million in shares. This buyback authorization allows the company to buy up to 5.4% of its stock through open market purchases. Stock buyback programs are usually a sign that the company's board believes its shares are undervalued.

Institutional Investors Weigh In On XPEL

Hedge funds have recently made changes to their positions in the business. PNC Financial Services Group Inc. boosted its stake in shares of XPEL by 81.8% during the second quarter. PNC Financial Services Group Inc. now owns 851 shares of the company's stock worth $31,000 after buying an additional 383 shares during the period. Eukles Asset Management acquired a new stake in XPEL in the first quarter valued at about $35,000. Brooklyn Investment Group lifted its position in XPEL by 805.7% in the first quarter. Brooklyn Investment Group now owns 1,739 shares of the company's stock valued at $51,000 after purchasing an additional 1,547 shares during the period. GAMMA Investing LLC lifted its position in XPEL by 308.2% in the first quarter. GAMMA Investing LLC now owns 3,339 shares of the company's stock valued at $98,000 after purchasing an additional 2,521 shares during the period. Finally, Victory Capital Management Inc. lifted its position in XPEL by 12.1% in the first quarter. Victory Capital Management Inc. now owns 5,395 shares of the company's stock valued at $159,000 after purchasing an additional 583 shares during the period. Institutional investors and hedge funds own 75.08% of the company's stock.

XPEL Company Profile

XPEL, Inc sells, distributes, and installs protective films and coatings worldwide. The company offers automotive surface and paint protection film, headlight protection, and automotive and architectural window films, as well as proprietary DAP software. It also provides pre-cut film products, merchandise and apparel, ceramic coatings, and tools and accessories.