XPEL (NASDAQ:XPEL) Shares Gap Up After Earnings Beat

Key Points

• XPEL, Inc. shares gapped up from a previous closing price of $32.75 to open at $36.98 following a stronger-than-expected earnings report, which showed an EPS of $0.59, exceeding the consensus estimate of $0.52.
• The company announced a $50 million stock buyback program, allowing it to repurchase up to 5.4% of its outstanding shares, suggesting management believes the stock is undervalued.
• Wall Street Zen upgraded XPEL from a "hold" to a "buy" rating, indicating increased confidence in the company’s future performance.

XPEL, Inc. (NASDAQ:XPEL - Get Free Report) gapped up prior to trading on Wednesday following a better than expected earnings announcement. The stock had previously closed at $32.75, but opened at $36.98. XPEL shares last traded at $34.44, with a volume of 57,753 shares trading hands.

The company reported $0.59 EPS 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 company had revenue of $124.71 million for the quarter, compared to analyst estimates of $118.37 million. During the same quarter in the prior year, the business posted $0.54 EPS. XPEL's quarterly revenue was up 13.5% on a year-over-year basis.

XPEL declared that its Board of Directors has approved a stock buyback program on Tuesday, May 6th that allows the company to buyback $50.00 million in outstanding shares. This buyback authorization allows the company to reacquire up to 5.4% of its stock through open market purchases. Stock buyback programs are generally an indication that the company's leadership believes its stock is undervalued.

Analysts Set New Price Targets

Separately, Wall Street Zen upgraded shares of XPEL from a "hold" rating to a "buy" rating in a research note on Saturday, June 21st.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the business. PNC Financial Services Group Inc. increased its stake in shares of XPEL by 81.8% during the 2nd quarter. PNC Financial Services Group Inc. now owns 851 shares of the company's stock worth $31,000 after purchasing an additional 383 shares during the last quarter. Eukles Asset Management acquired a new position in XPEL in the 1st quarter valued at $35,000. Brooklyn Investment Group grew its stake in XPEL by 805.7% in the 1st quarter. Brooklyn Investment Group now owns 1,739 shares of the company's stock valued at $51,000 after buying an additional 1,547 shares during the last quarter. GAMMA Investing LLC grew its stake in XPEL by 308.2% in the 1st quarter. GAMMA Investing LLC now owns 3,339 shares of the company's stock valued at $98,000 after buying an additional 2,521 shares during the last quarter. Finally, Tower Research Capital LLC TRC grew its stake in XPEL by 199.4% in the 4th quarter. Tower Research Capital LLC TRC now owns 4,734 shares of the company's stock valued at $189,000 after buying an additional 3,153 shares during the last quarter. Institutional investors and hedge funds own 75.08% of the company's stock.

XPEL Stock Performance

The business's 50 day moving average is $35.87 and its 200-day moving average is $34.70. The firm has a market capitalization of $929.16 million, a price-to-earnings ratio of 19.08 and a beta of 1.83.

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.