Vanguard Personalized Indexing Management LLC, a well-known institutional investor, has increased its stake in Eagle Materials Inc. (NYSE:EXP) by 127.6% in the first quarter of this year. According to the company’s most recent filing with the Securities and Exchange Commission (SEC), Vanguard now owns 3,845 shares of the construction company’s stock, adding an additional 2,156 shares during this period. As of its most recent filing with the SEC in August 2023, Vanguard’s holdings in Eagle Materials were valued at $564,000.

Eagle Materials recently released its quarterly earnings data on July 27th. The construction company reported earnings per share (EPS) of $3.55 for the quarter, surpassing market expectations by $0.01. During this period, Eagle Materials generated revenue of $601.50 million, slightly missing the consensus estimate of $603.11 million. Despite falling short on revenue forecasts, Eagle Materials demonstrated a return on equity of 40.68% and a net margin of 21.82%. Compared to the same quarter last year, the company experienced a 7.1% increase in revenue growth in this quarter alone.

Financial analysts have provided their opinions on Eagle Materials’ performance and prospects following these developments. Citigroup raised their price target for Eagle Materials from $215.00 to $219.00 and awarded it a “buy” rating in a report published on August 10th, 2023. Similarly, Jefferies Financial Group also lifted their price target from $195.00 to $226.00 and echoed the “buy” rating on July 13th, emphasizing positive sentiments about the construction company’s future outlook.

On May 22nd earlier this year, Loop Capital raised its target price for Eagle Materials from $160 to $181 while DA Davidson went even higher by raising it from $140 to $175. However, JPMorgan Chase & Co. took a more cautious stance by raising its target price from $190 to $200 and assigning an “underweight” rating on the stock.

At present, Bloomberg data reveals a consensus rating of “Moderate Buy” for Eagle Materials Inc., with seven analysts giving it a buy rating, one analyst holding a sell rating, and one remaining neutral. The company’s average consensus target price is currently set at $199.80.

The recent increase in Vanguard’s stake in Eagle Materials, coupled with the positive quarterly earnings results and favorable ratings from multiple analysts, suggests that the construction company continues to generate confidence among institutional investors and market experts alike. As the fiscal year progresses, all eyes remain focused on Eagle Materials’ performance as it aims to achieve an estimated EPS of 13.89 for this financial year.

Hedge Fund Stake Changes Highlight Investor Interest in Eagle Materials Inc.

Eagle Materials Inc. has recently witnessed changes in its stake from various hedge funds. These funds have either increased or reduced their holdings in the company. Point72 Middle East FZE, for instance, purchased a new stake in Eagle Materials during the last quarter valued at approximately $31,000. Meanwhile, Global Retirement Partners LLC experienced a significant increase of 681.5% in its holdings of Eagle Materials stock during the first quarter, now owning 211 shares valued at $32,000 after acquiring an additional 184 shares.

Byrne Asset Management LLC and Harbor Investment Advisory LLC also acquired new positions in Eagle Materials during the first quarter worth around $34,000 each. Similarly, Parallel Advisors LLC raised its holdings in Eagle Materials by 372.7% during the first quarter with 312 shares valued at $46,000 after acquiring an additional 246 shares.

It is worth noting that institutional investors currently own a staggering 92.84% of the company’s stock. This indicates a high level of interest and confidence among prominent financial organizations towards Eagle Materials.

Shares of EXP began trading on Monday at $179.60 with a fifty-day moving average price of $183.47 and a two-hundred-day moving average price of $161.64. The company has maintained strong financials with a debt-to-equity ratio of 0.92, quick ratio of 1.36, and current ratio of 2.68.

Notably, Eagle Materials Inc.’s market cap stands at $6.36 billion while boasting a price-to-earnings ratio of 13.70 and a beta value of 1.33 which reflects moderate sensitivity to market fluctuations.

Various equities analysts have commented on the company’s performance as well as its future prospects. Citigroup recently increased their price target on Eagle Materials from $215 to $219 and designated it as a “buy” rating in their report issued on August 10th. Jefferies Financial Group also expressed optimism by raising their price target from $195 to $226 and maintained a “buy” rating in their report on July 13th. Other notable analyst reports came from Loop Capital and DA Davidson who increased their target prices from $160 to $181 and $140 to $175 respectively.

However, JPMorgan Chase & Co. took a more cautious approach by raising its rating from underweight to overweight and setting the target price at $200. Despite these mixed assessments, Bloomberg data indicates that the consensus rating for Eagle Materials is currently labeled as “Moderate Buy” with a consensus target price of $199.80.

It is important to mention that Eagle Materials recently declared the payment of its quarterly dividend scheduled for Monday, October 16th. Stockholders of record on Friday, September 15th will receive a dividend of $0.25 per share. With an ex-dividend date set for Thursday, September 14th, this represents an annualized dividend yield of 0.56%. Eagle Materials maintains a current payout ratio of 7.63%.

In other news related to the company’s top management, Director Richard Ross Stewart sold 1,000 shares of Eagle Materials stock on Thursday, August 17th at an average price of $182.28, totaling $182,280. Following this transaction, Director Richard Ross Stewart now holds 9,041 shares valued at approximately $1,647,993.48.

Furthermore, CEO Michael Haack also sold 5,000 shares of Eagle Materials stock on Friday June 16th at an average price of approximately $170.50 which equates to a total value of roughly $852,500. Following this sale transaction, CEO Michael Haack currently owns about 104,229 shares valued at around $17,771,044.50.

Overall over the past three months, insiders have sold a total of 10,246 shares of the company’s stock with an estimated worth of $1,742,121. This substantial insider activity indicates diverse opinions and strategies concerning the future performance of the company.

In conclusion, Eagle Materials Inc.’s recent stake changes from various hedge funds demonstrate significant interest in the company. With shares opening at $179.60 and strong financial indicators, the construction company aims to maintain its profitability and attract investors. Analyst ratings vary but generally indicate a positive outlook for the company’s future. Finally, dividend payments and insider transactions illustrate Eagle Materials’ commitment to providing value to its stakeholders while also triggering intrigue among financial market participants.

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