American Woodmark Co. (NASDAQ:AMWD) recently saw a decrease in its position by 18.2% from Legato Capital Management LLC in the first quarter, according to a Form 13F filing with the Securities & Exchange Commission. The fund now owns 16,436 shares of American Woodmark’s stock after selling 3,664 shares during the period. This equates to Legato Capital Management LLC owning 0.10% of American Woodmark at an estimated worth of $856,000 as of its most recent filing.
On August 29th, American Woodmark released its quarterly earnings data, reporting earnings per share (EPS) of $2.78 for the quarter. This surpassed the consensus estimate of $2.30 by $0.48. The company’s net margin was recorded at 5.52%, with a return on equity of 16.85%. During the quarter, American Woodmark generated revenue of $498.26 million, slightly exceeding analysts’ expectations of $497.31 million.
When compared to the same period last year, American Woodmark’s revenue experienced an 8.2% decline. However, despite this decrease, equities analysts anticipate that the company will post earnings per share of 6.88 for the current fiscal year.
Specializing in manufacturing and distributing kitchen, bath, office, home organization, and hardware products for remodelling and new home construction markets in the United States, American Woodmark Corporation offers both made-to-order and cash-and-carry products. Additionally, the company provides turnkey installation services through a network of eight service centers to its direct builder customers.
This recent update on American Woodmark Co.’s position decrease highlights potential changes within its holdings and sheds light on market trends surrounding this stock in particular. Investors should closely monitor further developments regarding Legato Capital Management LLC’s position and any subsequent impacts it may have on American Woodmark’s value moving forward.
Overstock.com, Inc.
OSTK
Buy
Updated on: 05/12/2023
Financial Health
Healthy
Debt to equity ratio: Neutral
Price to earnings ratio: Strong Sell
Price to book ratio: Strong Buy
DCF: Strong Buy
ROE: Neutral
Growing Confidence in American Woodmark: Increase in Hedge Fund and Institutional Investor Activity Signals Potential Opportunity
American Woodmark, a renowned company in the wood manufacturing industry, has recently seen significant activity from hedge funds and institutional investors. Vanguard Group Inc., for instance, has increased its stake in American Woodmark by 2.3% during the first quarter of this year. The company now holds 1,468,355 shares valued at $71,876,000.
Similarly, Wellington Management Group LLP also raised its position in American Woodmark by 9.3% during the first quarter, acquiring an additional 100,455 shares now valued at $57,962,000. Along with these investments, Dimensional Fund Advisors LP increased its position by 4.8%, and Pzena Investment Management LLC saw a rise of 10% in their holdings.
These activities reflect the confidence that major financial firms have in American Woodmark’s growth potential. It is important to note that hedge funds and institutional investors collectively own an astonishing 91.89% of the company’s stock.
On September 14th, American Woodmark’s stock opened at $76.97 on Thursday. With a fifty day simple moving average of $75.42 and a two-hundred day simple moving average of $63.57, American Woodmark appears to be performing well in terms of stability and consistency.
The company boasts strong financials with a quick ratio of 1.00 and a current ratio of 2.25 to ensure it can meet its short-term obligations comfortably. Additionally, American Woodmark has been able to keep debt levels relatively low with a debt-to-equity ratio of 0.41.
With a market cap exceeding $1 billion and a price-to-earnings ratio of just over 11 times earnings, American Woodmark is positioned as an attractive investment option for many discerning investors in the market today.
It is worth mentioning that the company’s stock showcases impressive growth potential with a beta coefficient of 1.86, indicating a higher level of volatility compared to the overall market. The company also has a PEG ratio of 0.87, suggesting that it may be undervalued relative to its earnings growth potential.
Various brokerage firms have issued reports on American Woodmark, providing valuable insights into the company’s future prospects for potential investors. Loop Capital raised its price target on American Woodmark shares from $79.00 to $84.00 in a research note on August 30th.
Robert W. Baird also adjusted their price target for the company’s shares, increasing it from $82.00 to $85.00 and maintaining a “neutral” rating in their research note on the same day.
StockNews.com commenced coverage on American Woodmark’s stock with a “buy” rating in their research note published on August 17th, which further demonstrates growing confidence in the company.
Furthermore, Zelman & Associates upgraded their rating for American Woodmark from “hold” to “buy” in a research note released on August 18th.
Ultimately, these favorable assessments are supported by TheStreet’s upgrade of American Woodmark’s stock from a “c+” rating to a “b-” rating in early June.
Despite one sell rating given by an equities research analyst, there is an overall consensus among analysts that American Woodmark is worth considering as an investment opportunity, with an average rating of “Hold.”
As evident from Bloomberg.com data, the consensus target price for American Woodmark currently stands at $73.50 per share.
To conclude, by staying informed about developments surrounding companies like American Woodmark—observing changes in stake ownership and reviewing analytical opinions—is crucial when making informed investment decisions. Traders and investors must remain vigilant in assessing all relevant factors before deciding whether or not to invest in any given firm or industry.
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