Wall Street Zen Downgrades Eagle Materials (NYSE:EXP) to Sell

Eagle Materials (NYSE:EXP) was downgraded by equities research analysts at Wall Street Zen from a “hold” rating to a “sell” rating in a research report issued on Saturday.

Other analysts have also recently issued reports about the company. Weiss Ratings restated a “hold (c+)” rating on shares of Eagle Materials in a research report on Monday, December 29th. JPMorgan Chase & Co. decreased their price target on shares of Eagle Materials from $245.00 to $230.00 and set a “neutral” rating on the stock in a research note on Tuesday, November 11th. Truist Financial reiterated a “hold” rating and set a $210.00 price objective (down previously from $280.00) on shares of Eagle Materials in a research report on Friday, December 19th. Zacks Research raised shares of Eagle Materials from a “strong sell” rating to a “hold” rating in a research note on Thursday, January 1st. Finally, Stephens restated an “equal weight” rating and issued a $245.00 target price on shares of Eagle Materials in a research report on Tuesday, January 20th. Two analysts have rated the stock with a Buy rating and ten have given a Hold rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of “Hold” and a consensus target price of $234.20.

Eagle Materials Stock Down 3.8%

Shares of EXP opened at $203.89 on Friday. Eagle Materials has a 52 week low of $191.91 and a 52 week high of $262.81. The company has a market capitalization of $6.41 billion, a price-to-earnings ratio of 15.43 and a beta of 1.38. The stock’s 50-day moving average price is $220.49 and its 200-day moving average price is $224.10. The company has a quick ratio of 2.68, a current ratio of 4.27 and a debt-to-equity ratio of 1.17.

Eagle Materials (NYSE:EXP) last issued its quarterly earnings data on Thursday, January 29th. The construction company reported $3.22 EPS for the quarter, missing analysts’ consensus estimates of $3.32 by ($0.10). Eagle Materials had a return on equity of 28.96% and a net margin of 18.70%.The firm had revenue of $555.96 million for the quarter, compared to analyst estimates of $556.41 million. During the same period in the previous year, the business earned $3.59 EPS. Eagle Materials’s revenue for the quarter was down .4% compared to the same quarter last year. On average, sell-side analysts predict that Eagle Materials will post 14.39 EPS for the current year.

Insider Transactions at Eagle Materials

In related news, Director David E. Rush bought 1,000 shares of the firm’s stock in a transaction that occurred on Wednesday, November 5th. The stock was purchased at an average cost of $208.08 per share, for a total transaction of $208,080.00. Following the completion of the acquisition, the director owned 4,173 shares in the company, valued at approximately $868,317.84. This trade represents a 31.52% increase in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Company insiders own 1.50% of the company’s stock.

Institutional Trading of Eagle Materials

A number of large investors have recently made changes to their positions in the company. Versant Capital Management Inc lifted its stake in Eagle Materials by 130.9% in the third quarter. Versant Capital Management Inc now owns 127 shares of the construction company’s stock worth $30,000 after acquiring an additional 72 shares during the last quarter. Aster Capital Management DIFC Ltd purchased a new stake in Eagle Materials during the 3rd quarter worth about $30,000. Measured Wealth Private Client Group LLC purchased a new stake in Eagle Materials during the 3rd quarter worth about $34,000. Hantz Financial Services Inc. boosted its position in shares of Eagle Materials by 7,750.0% during the 2nd quarter. Hantz Financial Services Inc. now owns 157 shares of the construction company’s stock worth $32,000 after acquiring an additional 155 shares in the last quarter. Finally, MAI Capital Management boosted its holdings in Eagle Materials by 3,060.0% in the second quarter. MAI Capital Management now owns 158 shares of the construction company’s stock valued at $32,000 after purchasing an additional 153 shares in the last quarter. 96.07% of the stock is currently owned by hedge funds and other institutional investors.

Eagle Materials News Roundup

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

• Positive Sentiment: Adjusted EBITDA and margins remained strong, with the company reporting $190.1M of adjusted EBITDA and healthy net margin/ROE metrics that support cash generation and shareholder returns. Read More.
• Positive Sentiment: Management emphasized continued strength in heavy materials (non-residential/industrial-related products), which helped offset weakness elsewhere and suggests segment-level resiliency. Read More.
• Neutral Sentiment: Revenue was essentially flat year-over-year ($556.0M) and missed consensus by a small amount, implying demand was mixed rather than broadly collapsing. Read More.
• Neutral Sentiment: The company posted its investor slide deck and call transcripts, providing detail on segment performance and cost trends for investors who want to model forward earnings/EBITDA sensitivity. Read More.
• Negative Sentiment: Reported EPS of $3.22 missed the consensus of $3.32 and fell from $3.59 a year earlier — the miss and YoY decline pressured the stock as it suggests near-term margin/demand headwinds. Read More.
• Negative Sentiment: Management called out residential weakness as a material drag on results, a demand softening that could weigh on near-term volumes if it persists. Read More.

Eagle Materials Company Profile

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.