Core & Main (NYSE:CNM) Shares Gap Up After Strong Earnings

Core & Main, Inc. (NYSE:CNM) shares gapped up before the market opened on Tuesday following a stronger than expected earnings report. The stock had previously closed at $48.29, but opened at $53.99. Core & Main shares last traded at $54.01, with a volume of 1,566,802 shares changing hands.

The company reported $0.69 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.65 by $0.04. Core & Main had a net margin of 5.58% and a return on equity of 21.91%. The company had revenue of $2.04 billion during the quarter, compared to analysts’ expectations of $1.99 billion. During the same quarter last year, the company posted $0.65 EPS. Core & Main’s quarterly revenue was up 11.5% compared to the same quarter last year.

Analysts Set New Price Targets

CNM has been the topic of a number of recent research reports. Robert W. Baird increased their target price on Core & Main from $60.00 to $66.00 and gave the stock an “outperform” rating in a research note on Wednesday. Royal Bank of Canada reiterated an “outperform” rating and set a $62.00 price objective (up previously from $53.00) on shares of Core & Main in a research report on Wednesday. Bank of America dropped their target price on Core & Main from $38.00 to $34.00 and set an “underperform” rating for the company in a report on Thursday, September 5th. Truist Financial upped their price target on shares of Core & Main from $38.00 to $56.00 and gave the company a “hold” rating in a research note on Wednesday. Finally, Wells Fargo & Company began coverage on shares of Core & Main in a research note on Monday, September 23rd. They issued an “overweight” rating and a $52.00 price objective for the company. One research analyst has rated the stock with a sell rating, three have assigned a hold rating and six have assigned a buy rating to the stock. Based on data from MarketBeat.com, Core & Main presently has a consensus rating of “Moderate Buy” and an average target price of $55.30.

Institutional Investors Weigh In On Core & Main

Large investors have recently bought and sold shares of the company. Rhumbline Advisers lifted its holdings in shares of Core & Main by 6.2% during the 2nd quarter. Rhumbline Advisers now owns 508,554 shares of the company’s stock worth $24,889,000 after acquiring an additional 29,490 shares during the period. Eagle Asset Management Inc. raised its position in Core & Main by 2.6% during the third quarter. Eagle Asset Management Inc. now owns 1,720,496 shares of the company’s stock valued at $74,979,000 after purchasing an additional 44,282 shares in the last quarter. Quest Partners LLC lifted its stake in Core & Main by 1,195,600.0% during the third quarter. Quest Partners LLC now owns 11,957 shares of the company’s stock worth $531,000 after purchasing an additional 11,956 shares during the last quarter. SG Americas Securities LLC boosted its holdings in shares of Core & Main by 542.1% in the 2nd quarter. SG Americas Securities LLC now owns 39,415 shares of the company’s stock valued at $1,929,000 after purchasing an additional 33,277 shares in the last quarter. Finally, South Street Advisors LLC bought a new position in shares of Core & Main in the 2nd quarter valued at $8,427,000. 94.19% of the stock is currently owned by institutional investors and hedge funds.

Core & Main Price Performance

The company has a debt-to-equity ratio of 1.40, a quick ratio of 1.34 and a current ratio of 2.29. The company has a market cap of $11.11 billion, a price-to-earnings ratio of 26.44, a PEG ratio of 3.14 and a beta of 1.04. The business has a fifty day moving average price of $45.03 and a 200 day moving average price of $48.06.

About Core & Main

Core & Main, Inc distributes water, wastewater, storm drainage, and fire protection products and related services to municipalities, private water companies, and professional contractors in the municipal, non-residential, and residential end markets in the United States. Its products portfolio include pipes, valves, hydrants, fittings, and other products and services; storm drainage products, such as corrugated piping systems, retention basins, inline drains, manholes, grates, geosynthetics, erosion control, and other related products; fire protection products, including fire protection pipes, and sprinkler heads and devices, as well as fabrication services; and meter products, such as smart meter products, meter sets, meter accessories, installation, software, and other services.