UFP Industries (NASDAQ:UFPI) Shares Gap Down on Disappointing Earnings

UFP Industries, Inc. (NASDAQ:UFPI) shares gapped down prior to trading on Tuesday following a dissappointing earnings announcement. The stock had previously closed at $116.35, but opened at $113.00. UFP Industries shares last traded at $113.22, with a volume of 34,320 shares traded.

The construction company reported $1.20 earnings per share for the quarter, missing analysts’ consensus estimates of $1.24 by ($0.04). UFP Industries had a net margin of 6.23% and a return on equity of 13.35%. The firm had revenue of $1.46 billion during the quarter, compared to analysts’ expectations of $1.43 billion.

UFP Industries Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Monday, March 17th. Shareholders of record on Monday, March 3rd will be paid a $0.35 dividend. The ex-dividend date of this dividend is Monday, March 3rd. This represents a $1.40 dividend on an annualized basis and a yield of 1.27%. This is a boost from UFP Industries’s previous quarterly dividend of $0.33. UFP Industries’s payout ratio is currently 19.50%.

Wall Street Analyst Weigh In

A number of research analysts have recently issued reports on UFPI shares. Wedbush reissued an “outperform” rating and issued a $155.00 target price on shares of UFP Industries in a report on Monday, November 4th. StockNews.com lowered UFP Industries from a “buy” rating to a “hold” rating in a report on Wednesday. Finally, Benchmark reissued a “buy” rating and issued a $135.00 target price on shares of UFP Industries in a report on Wednesday. Two research analysts have rated the stock with a hold rating and three have given a buy rating to the company. According to MarketBeat, the company has an average rating of “Moderate Buy” and an average price target of $143.00.

Insider Buying and Selling

In related news, CEO Matthew J. Missad sold 15,000 shares of the company’s stock in a transaction on Friday, November 22nd. The stock was sold at an average price of $131.03, for a total transaction of $1,965,450.00. Following the transaction, the chief executive officer now owns 314,450 shares of the company’s stock, valued at $41,202,383.50. This represents a 4.55 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, Director William G. Currie sold 5,700 shares of the company’s stock in a transaction on Friday, December 13th. The stock was sold at an average price of $126.59, for a total value of $721,563.00. Following the transaction, the director now directly owns 61,140 shares in the company, valued at $7,739,712.60. This represents a 8.53 % decrease in their position. The disclosure for this sale can be found here. 2.58% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in UFPI. Norges Bank purchased a new position in shares of UFP Industries in the fourth quarter valued at $83,149,000. Thrivent Financial for Lutherans increased its position in UFP Industries by 3,820.8% during the 4th quarter. Thrivent Financial for Lutherans now owns 561,142 shares of the construction company’s stock worth $63,212,000 after purchasing an additional 546,830 shares in the last quarter. T. Rowe Price Investment Management Inc. increased its position in UFP Industries by 39.1% during the 4th quarter. T. Rowe Price Investment Management Inc. now owns 1,546,745 shares of the construction company’s stock worth $174,241,000 after purchasing an additional 435,155 shares in the last quarter. Boston Partners increased its position in UFP Industries by 100.8% during the 4th quarter. Boston Partners now owns 672,231 shares of the construction company’s stock worth $75,736,000 after purchasing an additional 337,463 shares in the last quarter. Finally, Raymond James Financial Inc. purchased a new stake in UFP Industries during the 4th quarter worth about $30,457,000. Hedge funds and other institutional investors own 81.81% of the company’s stock.

UFP Industries Trading Down 2.7 %

The stock has a market cap of $6.67 billion, a PE ratio of 16.22 and a beta of 1.45. The business has a 50-day moving average of $115.46 and a 200 day moving average of $123.18. The company has a debt-to-equity ratio of 0.07, a quick ratio of 3.25 and a current ratio of 4.31.

About UFP Industries

UFP Industries, Inc, through its subsidiaries, designs, manufactures, and markets wood and non-wood composites, and other materials in North America, Europe, Asia, and Australia. It operates through Retail, Packaging, and Construction segments. The Retail segment offers treated lumber products, including decking, fencing, lattice, and other products; pressure-treated and fire-retardant products used primarily for outdoor decking environments; and lawn and garden products, consisting of wood and vinyl fencing options, garden beds and planters, pergolas, picnic tables, and other landscaping products.