Wells Fargo & Company Has Lowered Expectations for Eagle Materials (NYSE:EXP) Stock Price

Key Points

• Wells Fargo lowered Eagle Materials’ price target from $240 to $231 but maintained an “overweight” rating, implying roughly 13.5% upside from the prior close.
• Eagle Materials reported quarterly revenue of $650.97 million, beating expectations, but EPS fell short at $3.29 versus the $3.37 consensus; net income and adjusted EBITDA also declined year over year.
• Analyst sentiment remains cautious: the consensus rating is “Hold” with an average price target of $223.44, while shares dropped 3% to $203.54 and Zacks downgraded the stock to “Hold.”

Eagle Materials (NYSE:EXP - Get Free Report) had its price objective lowered by investment analysts at Wells Fargo & Company from $240.00 to $231.00 in a research report issued to clients and investors on Thursday,Benzinga reports. The firm currently has an "overweight" rating on the construction company's stock. Wells Fargo & Company's price target points to a potential upside of 13.49% from the company's previous close.

EXP has been the subject of several other research reports. Stephens set a $230.00 price target on Eagle Materials in a research note on Thursday. Jefferies Financial Group reiterated a "hold" rating and issued a $200.00 target price on shares of Eagle Materials in a research note on Wednesday, May 20th. Zacks Research lowered shares of Eagle Materials from a "strong-buy" rating to a "hold" rating in a research note on Monday. Weiss Ratings restated a "hold (c)" rating on shares of Eagle Materials in a report on Tuesday, June 16th. Finally, Citigroup lifted their price objective on shares of Eagle Materials from $217.00 to $240.00 and gave the company a "neutral" rating in a research note on Wednesday, July 8th. One equities research analyst has rated the stock with a Buy rating and nine have issued a Hold rating to the company. Based on data from MarketBeat, Eagle Materials presently has a consensus rating of "Hold" and an average price target of $223.44.

Eagle Materials Stock Down 3.0%

Shares of NYSE:EXP traded down $6.37 during midday trading on Thursday, hitting $203.54. 87,411 shares of the stock were exchanged, compared to its average volume of 465,595. The company has a market capitalization of $6.29 billion, a PE ratio of 15.57 and a beta of 1.37. Eagle Materials has a 52-week low of $171.99 and a 52-week high of $245.53. The company has a debt-to-equity ratio of 1.18, a quick ratio of 2.09 and a current ratio of 3.66. The business's fifty day simple moving average is $214.89 and its two-hundred day simple moving average is $211.01.

Eagle Materials (NYSE:EXP - Get Free Report) last issued its earnings results on Wednesday, July 29th. The construction company reported $3.29 EPS for the quarter, missing analysts' consensus estimates of $3.37 by ($0.08). Eagle Materials had a net margin of 18.36% and a return on equity of 28.27%. The firm had revenue of $650.97 million during the quarter, compared to analysts' expectations of $620.35 million. During the same quarter last year, the firm earned $3.76 EPS. The business's revenue for the quarter was up 2.6% compared to the same quarter last year. As a group, research analysts predict that Eagle Materials will post 12.9 earnings per share for the current fiscal year.

Institutional Trading of Eagle Materials

Institutional investors and hedge funds have recently modified their holdings of the company. Black Creek Investment Management Inc. acquired a new position in Eagle Materials in the 4th quarter valued at $103,778,000. Norges Bank bought a new stake in Eagle Materials during the fourth quarter valued at about $90,147,000. Baupost Group LLC MA grew its position in shares of Eagle Materials by 39.0% in the third quarter. Baupost Group LLC MA now owns 939,660 shares of the construction company's stock valued at $218,978,000 after purchasing an additional 263,403 shares during the last quarter. Earnest Partners LLC bought a new position in shares of Eagle Materials in the fourth quarter worth about $52,674,000. Finally, MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. bought a new position in shares of Eagle Materials in the third quarter worth about $51,812,000. 96.07% of the stock is currently owned by institutional investors and hedge funds.

Key Eagle Materials News

Here are the key news stories impacting Eagle Materials this week:

• Positive Sentiment: Fiscal first-quarter revenue rose 3% year over year to a record $651.0 million, exceeding the consensus estimate cited by MarketBeat. Cement sales volume increased 8% to a record 2.1 million tons, and operating cash flow reached $154 million. Eagle Materials Reports First Quarter Results
• Positive Sentiment: Eagle Materials repurchased approximately 406,500 shares for $84 million during the quarter, which may support per-share value and signal management’s confidence in the business.
• Neutral Sentiment: The earnings call highlighted record revenue and operational progress, particularly in the Heavy Materials segment, where revenue increased 8% to $454.1 million. However, Light Materials revenue declined 5%, reflecting uneven performance across the portfolio. Eagle Materials Q1 Earnings Call Highlights
• Negative Sentiment: Net income fell 17% to $102.1 million, diluted EPS declined 13% to $3.29 from $3.76 a year earlier, and adjusted EBITDA dropped 11% to $190.5 million. Gypsum wallboard sales volume also decreased 2% to 772 million square feet. Eagle Materials Q1 Revenue Rises
• Negative Sentiment: EPS was below the $3.37 consensus estimate cited by MarketBeat, despite exceeding Zacks’ $3.26 estimate. The conflicting estimates may limit the positive reaction to the revenue beat. Eagle Materials Earnings Results
• Negative Sentiment: Zacks Research downgraded EXP from “strong-buy” to “hold,” adding to investor caution following the weaker earnings and EBITDA results.

About Eagle Materials

Eagle Materials Inc NYSE: EXP is a Dallas, Texas–based manufacturer of building materials serving construction and heavy industry markets across the United States. The company's primary products include portland and masonry cements, gypsum wallboard, lightweight aggregate, paperboard packaging, and roofing granules. These product lines support a wide range of end uses—from residential and commercial buildings to infrastructure projects and industrial applications.

Since its spin-off from a major homebuilding company in 2004, Eagle Materials has grown through targeted facility expansions and strategic acquisitions.

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