Universal Forest Products (NASDAQ:UFPI) Rating Lowered to Hold at Zacks Investment Research

Universal Forest Products (NASDAQ:UFPI) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a note issued to investors on Wednesday, Zacks.com reports. They presently have a $57.00 price objective on the construction company’s stock. Zacks Investment Research‘s price target would indicate a potential upside of 5.36% from the stock’s current price.

According to Zacks, “UFP Industries' shares have outperformed the industry in the year-to-date period. Greater-than-expected demand for home improvement products have been benefiting the company. Although virus-related shutdowns negatively impacted the Industrial and Construction segments in the last reported quarter, the increase in home improvement activity resulting from stay-at-home orders benefited its Retail segment. Notably, it has been expanding the product portfolio and leveraging new business opportunities with the recent buyouts. The latest T&R acquisition enhances its agricultural product offerings and customer base across the country. Also, a solid liquidity position and shareholders' rewards are adding to its bliss. However, COVID-19 related woes and volatile lumber market are concerns.”

Several other brokerages have also recently commented on UFPI. BMO Capital Markets increased their target price on shares of Universal Forest Products from $44.00 to $53.00 and gave the stock a “market perform” rating in a report on Monday, July 27th. BidaskClub lowered Universal Forest Products from a “hold” rating to a “sell” rating in a report on Tuesday, September 15th. ValuEngine upgraded Universal Forest Products from a “strong sell” rating to a “sell” rating in a research note on Monday, August 3rd. Finally, Benchmark increased their price objective on Universal Forest Products from $56.00 to $66.00 and gave the company a “buy” rating in a report on Friday, July 24th. Two analysts have rated the stock with a sell rating, four have assigned a hold rating and three have issued a buy rating to the company’s stock. The stock has an average rating of “Hold” and an average target price of $54.17.

Shares of UFPI stock traded down $0.21 during trading hours on Wednesday, hitting $54.10. 3,681 shares of the company were exchanged, compared to its average volume of 353,681. The company has a market capitalization of $3.32 billion, a PE ratio of 17.02 and a beta of 1.58. Universal Forest Products has a 52 week low of $29.17 and a 52 week high of $64.20. The business has a 50 day moving average of $59.44 and a two-hundred day moving average of $47.75. The company has a current ratio of 2.84, a quick ratio of 1.79 and a debt-to-equity ratio of 0.12.

Universal Forest Products (NASDAQ:UFPI) last posted its quarterly earnings data on Wednesday, July 22nd. The construction company reported $1.08 earnings per share for the quarter, topping the consensus estimate of $0.63 by $0.45. Universal Forest Products had a return on equity of 15.39% and a net margin of 4.42%. The company had revenue of $1.24 billion during the quarter, compared to analysts’ expectations of $1.09 billion. On average, research analysts forecast that Universal Forest Products will post 3.13 EPS for the current year.

In related news, COO Allen T. Peters sold 1,767 shares of the firm’s stock in a transaction dated Wednesday, July 22nd. The shares were sold at an average price of $52.00, for a total transaction of $91,884.00. Also, Director William G. Currie sold 3,285 shares of Universal Forest Products stock in a transaction dated Thursday, August 27th. The stock was sold at an average price of $61.00, for a total transaction of $200,385.00. Following the completion of the sale, the director now owns 15,000 shares of the company’s stock, valued at approximately $915,000. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 74,094 shares of company stock valued at $4,327,253. Corporate insiders own 3.03% of the company’s stock.

A number of institutional investors have recently bought and sold shares of UFPI. Magnus Financial Group LLC grew its holdings in shares of Universal Forest Products by 8.8% during the 1st quarter. Magnus Financial Group LLC now owns 7,728 shares of the construction company’s stock worth $287,000 after purchasing an additional 622 shares in the last quarter. Emerald Mutual Fund Advisers Trust bought a new stake in shares of Universal Forest Products during the 2nd quarter worth approximately $35,000. Eqis Capital Management Inc. boosted its position in shares of Universal Forest Products by 14.1% during the 1st quarter. Eqis Capital Management Inc. now owns 6,022 shares of the construction company’s stock worth $296,000 after acquiring an additional 745 shares in the last quarter. Ameritas Investment Company LLC bought a new position in Universal Forest Products in the first quarter valued at approximately $36,000. Finally, Sawgrass Asset Management LLC raised its position in Universal Forest Products by 17.5% during the first quarter. Sawgrass Asset Management LLC now owns 8,684 shares of the construction company’s stock valued at $323,000 after purchasing an additional 1,295 shares in the last quarter. Hedge funds and other institutional investors own 78.91% of the company’s stock.

Universal Forest Products Company Profile

Universal Forest Products, Inc, through its subsidiaries, designs, manufactures, and markets wood and wood-alternative products in North America, Europe, Asia, and Australia. The company offers preserved and unpreserved dimensional lumber; outdoor living products, including wood and wood composite decking and related accessories, and decorative lawn and garden products; and engineered wood components, which include roof and floor trusses, wall panels, engineered floor systems, I-joists, and lumber packages.

Further Reading: What is Compound Annual Growth Rate (CAGR)?

Get a free copy of the Zacks research report on Universal Forest Products (UFPI)

For more information about research offerings from Zacks Investment Research, visit Zacks.com

Analyst Recommendations for Universal Forest Products (NASDAQ:UFPI)

Receive News & Ratings for Universal Forest Products Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Universal Forest Products and related companies with MarketBeat.com's FREE daily email newsletter.