FirstService (NASDAQ:FSV) Shares Climb 5.8% on Better-Than-Expected Earnings

FirstService Corporation (NASDAQ:FSV) (TSE:FSV) rose 5.8% during mid-day trading on Thursday after the company announced better than expected quarterly earnings. The company traded as high as $145.04 and last traded at $144.4830. Approximately 13,488 shares were traded during trading, a decline of 94% from the average daily volume of 209,459 shares. The stock had previously closed at $136.59.

The financial services provider reported $1.89 earnings per share for the quarter, topping analysts’ consensus estimates of $1.84 by $0.05. FirstService had a net margin of 2.88% and a return on equity of 18.07%. The firm’s revenue for the quarter was up 5.8% on a year-over-year basis. During the same quarter last year, the firm earned $1.76 EPS.

FirstService Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, October 7th. Shareholders of record on Wednesday, September 30th were paid a dividend of $0.3050 per share. The ex-dividend date of this dividend was Wednesday, September 30th. This represents a $1.22 dividend on an annualized basis and a yield of 0.8%. FirstService’s payout ratio is 34.56%.

Analysts Set New Price Targets

A number of research analysts have commented on FSV shares. Canadian Imperial Bank of Commerce set a $170.00 price target on FirstService in a research note on Thursday, October 15th. BMO Capital Markets reduced their target price on FirstService from $199.00 to $192.00 and set an “outperform” rating for the company in a report on Friday, July 24th. TD increased their price objective on FirstService from $204.00 to $207.00 and gave the stock a “buy” rating in a research report on Tuesday, July 14th. Weiss Ratings reissued a “hold (c-)” rating on shares of FirstService in a report on Wednesday, August 26th. Finally, Wall Street Zen lowered FirstService from a “buy” rating to a “hold” rating in a report on Saturday, August 1st. Eight analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company’s stock. According to MarketBeat, FirstService currently has an average rating of “Moderate Buy” and an average target price of $183.70.

Institutional Trading of FirstService

A number of hedge funds and other institutional investors have recently modified their holdings of the business. Janus Henderson Group PLC lifted its stake in shares of FirstService by 16.1% in the first quarter. Janus Henderson Group PLC now owns 1,587,454 shares of the financial services provider’s stock worth $220,560,000 after acquiring an additional 219,890 shares in the last quarter. Conestoga Capital Advisors LLC grew its stake in FirstService by 19.9% during the 1st quarter. Conestoga Capital Advisors LLC now owns 1,405,564 shares of the financial services provider’s stock valued at $195,289,000 after purchasing an additional 233,043 shares in the last quarter. Royal Bank of Canada increased its holdings in FirstService by 15.7% during the 1st quarter. Royal Bank of Canada now owns 573,421 shares of the financial services provider’s stock worth $79,672,000 after purchasing an additional 77,758 shares during the last quarter. Copeland Capital Management LLC increased its holdings in FirstService by 11.9% during the 3rd quarter. Copeland Capital Management LLC now owns 389,749 shares of the financial services provider’s stock worth $49,841,000 after purchasing an additional 41,333 shares during the last quarter. Finally, Dimensional Fund Advisors LP raised its position in shares of FirstService by 3.2% in the 1st quarter. Dimensional Fund Advisors LP now owns 277,225 shares of the financial services provider’s stock valued at $38,513,000 after purchasing an additional 8,689 shares in the last quarter. 69.35% of the stock is owned by hedge funds and other institutional investors.

FirstService Stock Performance

The company has a market capitalization of $6.32 billion, a price-to-earnings ratio of 40.97, a price-to-earnings-growth ratio of 3.07 and a beta of 0.95. The company has a current ratio of 1.63, a quick ratio of 1.63 and a debt-to-equity ratio of 1.03. The stock has a 50-day simple moving average of $135.57 and a 200-day simple moving average of $138.69.

About FirstService

FirstService Corporation is a Canadian provider of property management and property services serving customers primarily in the United States and Canada. The company operates through two main businesses: FirstService Residential and FirstService Brands.

FirstService Residential provides property management services for condominium and homeowners’ associations, cooperatives, and other residential communities. Its services include community administration, financial management, maintenance coordination, customer support, and related operational services.

FirstService Brands operates and supports a network of property-service businesses, including companies involved in property restoration, painting, flooring, window treatments, and other residential and commercial services.