XPEL (NASDAQ:XPEL) Downgraded to "Hold" Rating by 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 downgraded shares of XPEL (NASDAQ:XPEL - Free Report) from a buy rating to a hold rating in a research note published on Saturday.

XPEL Stock Up 2.8%

XPEL stock traded up $1.04 during trading on Friday, hitting $38.50. 43,668 shares of the company's stock traded hands, compared to its average volume of 210,411. The firm has a market capitalization of $1.07 billion, a P/E ratio of 21.87 and a beta of 1.83. The business has a fifty day simple moving average of $35.86 and a two-hundred day simple moving average of $34.54. XPEL has a 1 year low of $24.25 and a 1 year high of $47.23.

XPEL (NASDAQ:XPEL - Get Free Report) last issued its quarterly earnings data on Wednesday, August 6th. The company reported $0.59 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.52 by $0.07. The company had revenue of $124.71 million for the quarter, compared to analyst estimates of $118.37 million. XPEL had a net margin of 10.84% and a return on equity of 21.17%. XPEL's revenue was up 13.5% compared to the same quarter last year. During the same period last year, the company posted $0.54 earnings per share. On average, equities research analysts predict that XPEL will post 1.73 EPS for the current fiscal year.

XPEL declared that its board has initiated a stock buyback program on Tuesday, May 6th that permits the company to repurchase $50.00 million in outstanding shares. This repurchase authorization permits the company to repurchase up to 5.4% of its shares through open market purchases. Shares repurchase programs are usually a sign that the company's management believes its shares are undervalued.

Hedge Funds Weigh In On XPEL

Several institutional investors and hedge funds have recently bought and sold shares of the company. SCS Capital Management LLC purchased a new position in XPEL in the first quarter worth $51,460,000. Schwartz Investment Counsel Inc. grew its holdings in XPEL by 12.5% in the second quarter. Schwartz Investment Counsel Inc. now owns 870,999 shares of the company's stock worth $31,269,000 after purchasing an additional 96,660 shares during the last quarter. Mawer Investment Management Ltd. grew its holdings in XPEL by 11.5% in the first quarter. Mawer Investment Management Ltd. now owns 443,210 shares of the company's stock worth $13,022,000 after purchasing an additional 45,677 shares during the last quarter. Grantham Mayo Van Otterloo & Co. LLC grew its holdings in XPEL by 5.1% in the second quarter. Grantham Mayo Van Otterloo & Co. LLC now owns 327,747 shares of the company's stock worth $11,766,000 after purchasing an additional 16,008 shares during the last quarter. Finally, Dimensional Fund Advisors LP grew its holdings in XPEL by 1.2% in the fourth quarter. Dimensional Fund Advisors LP now owns 317,971 shares of the company's stock worth $12,700,000 after purchasing an additional 3,701 shares during the last quarter. 75.08% of the stock is owned by hedge funds and other institutional investors.

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.