Core & Main (NYSE:CNM) Shares Gap Up Following Better-Than-Expected Earnings

Core & Main, Inc. (NYSE:CNM) gapped up prior to trading on Tuesday following a better than expected earnings announcement. The stock had previously closed at $50.52, but opened at $53.05. Core & Main shares last traded at $52.2350, with a volume of 1,049,704 shares traded.

The company reported $0.89 earnings per share for the quarter, topping the consensus estimate of $0.72 by $0.17. The firm had revenue of $2.06 billion during the quarter, compared to analysts’ expectations of $2.06 billion. Core & Main had a return on equity of 25.44% and a net margin of 5.57%.The company’s quarterly revenue was up 1.2% compared to the same quarter last year. During the same period in the previous year, the business posted $0.69 EPS.

Wall Street Analysts Forecast Growth

Several brokerages have commented on CNM. Royal Bank Of Canada lowered their target price on shares of Core & Main from $67.00 to $62.00 and set an “outperform” rating for the company in a research note on Wednesday, September 10th. Barclays cut their price objective on Core & Main from $65.00 to $63.00 and set an “overweight” rating on the stock in a report on Monday, December 1st. Wells Fargo & Company lowered their price objective on shares of Core & Main from $60.00 to $55.00 and set an “overweight” rating for the company in a research report on Thursday, December 4th. The Goldman Sachs Group dropped their target price on Core & Main from $68.00 to $60.00 and set a “neutral” rating on the stock in a research report on Friday, September 12th. Finally, UBS Group began coverage on Core & Main in a report on Monday, September 29th. They issued a “buy” rating and a $65.00 price objective for the company. Seven analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company’s stock. Based on data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $60.00.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of CNM. Allworth Financial LP grew its stake in Core & Main by 14.3% during the third quarter. Allworth Financial LP now owns 10,351 shares of the company’s stock worth $557,000 after buying an additional 1,296 shares in the last quarter. Swiss Life Asset Management Ltd lifted its holdings in shares of Core & Main by 79.4% during the 3rd quarter. Swiss Life Asset Management Ltd now owns 8,825 shares of the company’s stock worth $475,000 after acquiring an additional 3,907 shares during the period. CIBC Bancorp USA Inc. acquired a new stake in shares of Core & Main during the 3rd quarter worth approximately $676,000. Wilmington Savings Fund Society FSB boosted its position in shares of Core & Main by 47.8% during the 3rd quarter. Wilmington Savings Fund Society FSB now owns 961 shares of the company’s stock worth $52,000 after acquiring an additional 311 shares in the last quarter. Finally, Danske Bank A S bought a new position in Core & Main in the third quarter valued at approximately $1,177,000. Institutional investors own 94.19% of the company’s stock.

Core & Main Trading Up 3.8%

The firm’s 50-day simple moving average is $50.37 and its 200 day simple moving average is $56.40. The company has a debt-to-equity ratio of 1.14, a current ratio of 2.25 and a quick ratio of 1.30. The firm has a market capitalization of $10.36 billion, a price-to-earnings ratio of 23.28, a P/E/G ratio of 1.97 and a beta of 0.99.

Core & Main Company Profile

Core & Main, Inc is a specialty distributor focused on water, wastewater, storm drainage and fire protection products, and related services. The company provides infrastructure solutions to municipalities, private water companies and professional contractors across municipal, non-residential, and residential end markets, nationwide.