Zacks Investment Research lowered shares of WESCO International (NYSE:WCC) from a buy rating to a hold rating in a research note released on Tuesday morning.
According to Zacks, “WESCO’s top-line growth continues to benefit from strengthening end-markets and robust product and services portfolio. Moreover, strong focus on growth and pricing strategies remain positive for the company’s market position. WESCO continues with its efforts on delivering above-average sales growth, profitability improvement, strong cash flow generation and increasing shareholder value. It continues to invest progressively in the One WESCO initiative aimed at creating extensive supply chain management solutions. However, supplier concentration, a significant debt load and limited liquidity remain concerns. In the past year, the stock has underperformed the industry it belongs to.”
A number of other brokerages have also commented on WCC. ValuEngine lowered shares of WESCO International from a buy rating to a hold rating in a research note on Friday, February 2nd. UBS began coverage on shares of WESCO International in a research note on Tuesday, January 23rd. They issued a neutral rating and a $70.00 price target for the company. One analyst has rated the stock with a sell rating, seven have given a hold rating and seven have given a buy rating to the company. The company has a consensus rating of Hold and a consensus price target of $68.69.
WESCO International (NYSE:WCC) last announced its quarterly earnings results on Thursday, February 1st. The technology company reported $1.03 EPS for the quarter, topping analysts’ consensus estimates of $0.98 by $0.05. WESCO International had a net margin of 2.13% and a return on equity of 9.06%. The firm had revenue of $2 billion during the quarter, compared to analyst estimates of $1.93 billion. During the same period in the previous year, the business posted $0.96 earnings per share. The business’s revenue for the quarter was up 11.3% on a year-over-year basis. research analysts anticipate that WESCO International will post 4.67 EPS for the current fiscal year.
WESCO International announced that its Board of Directors has initiated a stock repurchase plan on Wednesday, December 13th that allows the company to buyback $300.00 million in shares. This buyback authorization allows the technology company to purchase shares of its stock through open market purchases. Stock buyback plans are usually a sign that the company’s management believes its stock is undervalued.
In related news, Director Lynn M. Utter sold 737 shares of the business’s stock in a transaction that occurred on Wednesday, March 14th. The shares were sold at an average price of $63.57, for a total transaction of $46,851.09. Following the completion of the sale, the director now directly owns 11,116 shares in the company, valued at $706,644.12. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Director Lynn M. Utter sold 768 shares of the business’s stock in a transaction that occurred on Friday, February 23rd. The shares were sold at an average price of $65.56, for a total transaction of $50,350.08. The disclosure for this sale can be found here. Insiders own 1.90% of the company’s stock.
A number of hedge funds and other institutional investors have recently made changes to their positions in WCC. Polaris Capital Management LLC grew its position in WESCO International by 169.8% during the fourth quarter. Polaris Capital Management LLC now owns 1,793,516 shares of the technology company’s stock valued at $34,095,000 after buying an additional 1,128,805 shares during the period. TIAA CREF Investment Management LLC grew its position in WESCO International by 134.5% during the fourth quarter. TIAA CREF Investment Management LLC now owns 505,648 shares of the technology company’s stock valued at $34,460,000 after buying an additional 290,016 shares during the period. Tocqueville Asset Management L.P. lifted its holdings in WESCO International by 47.3% during the fourth quarter. Tocqueville Asset Management L.P. now owns 460,615 shares of the technology company’s stock valued at $31,391,000 after purchasing an additional 147,900 shares in the last quarter. Geode Capital Management LLC lifted its holdings in WESCO International by 11.8% during the fourth quarter. Geode Capital Management LLC now owns 401,452 shares of the technology company’s stock valued at $27,358,000 after purchasing an additional 42,279 shares in the last quarter. Finally, James Investment Research Inc. lifted its holdings in WESCO International by 217.4% during the fourth quarter. James Investment Research Inc. now owns 39,800 shares of the technology company’s stock valued at $2,712,000 after purchasing an additional 27,260 shares in the last quarter.
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About WESCO International
WESCO International, Inc distributes electrical, industrial, and communications maintenance, repair and operating (MRO) and original equipment manufacturers products and construction materials in North America and internationally. The company sells general supplies, such as wiring devices, fuses, terminals, connectors, boxes, enclosures, fittings, lugs, terminations, wraps, splicing and marking equipment, tools and testers, safety, personal protection, sealants, cutting tools, adhesives, consumables, fasteners, janitorial, and other MRO supplies.
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