On May 3rd, 2023, the world of finance saw a significant shift in the ownership of Quanex Building Products Co. (NYSE:NX). Los Angeles Capital Management LLC had evidently lowered its position in the company by a staggering 44.4%, according to its most recent 13F filing with the Securities and Exchange Commission.
The firm’s previous ownership of 49,326 shares was significantly reduced after selling off 39,316 shares during the fourth quarter. Los Angeles Capital Management LLC now only owned 0.15% of Quanex Building Products, with a total worth of $1,168,000 as per its most recent SEC filing.
Quanex Building Products Corporation is primarily engaged in manufacturing components that are sold to original equipment manufacturers in the building products industry. The company also designs and produces energy-efficient fenestration products along with kitchen and bath cabinet components.
Despite this major shift in ownership, Quanex Building Products posted impressive quarterly earnings results on Thursday, March 9th. The construction company reported an impressive $0.18 earnings per share (EPS) for the quarter, which undoubtedly boosted investors’ confidence in the firm.
It was an all-around stellar performance from Quanex Building Products that saw a return on equity of 18.33% and a net margin of 6.50%. Additionally, the business had revenue of $261.92 million for the quarter.
The firm operates through four distinct segments: North American Fenestration, European Fenestration, North American Cabinet Components, and Unallocated Corporate and Other.’ This diversified structure aids the corporation in navigating ever-changing market conditions while ensuring steady revenue streams for investors.
In summary, while Los Angeles Capital Management LLC may have lowered their position in Quanex Building Products by almost half its previous holdings; investors must recognize that overall ownership distribution remains robust and healthy amid an efficient corporate structure poised for success.
Quanex Building Products Corp Sees Increased Investment from Hedge Funds and Institutional Investors
Quanex Building Products Corp. has been making waves in the construction industry lately with its innovative and energy-efficient fenestration products as well as kitchen and bath cabinet components. As per recent reports, many hedge funds have followed suit by modifying their holdings of NX stock.
Hancock Whitney Corp saw a 46.1% lift in its position in Quanex Building Products during the fourth quarter, following an additional investment of 7,931 shares which now puts their overall ownership at 25,149 shares worth $596,000. Similarly, SG Americas Securities now owns an additional 1,289 shares worth $203,000 after increasing its holding by 17.7%, whilst ARGI Investment Services acquired a new stake valued at $3,308,000.
Other financial institutions to acquire additional stakes were Bank of Montreal Can who increased its holdings by 19.5% ($461K) following the purchase of an extra 3,116 shares and Zurcher Kantonalbank Zurich Cantonalbank which saw a growth of 35.1%. They purchased another 1,557 shares worth $142k.
Institutional investors alone own a staggering 98.49% stake in the company’s stock which shows great promise for Quanex Building Products going forward.
On Wednesday this week NYSE NX opened at $19.38 in light of its recent successes which includes having a market capitalization of over $644 million with P/E ratio of just over eight and a beta of around one point three-five.
The future looks even brighter considering QBP’s recent release announcing that it will be paying quarterly dividends to shareholders. Whilst those who were shareholders on record before March 15th received their dividend earlier this year on Friday March 31st; those interested in buying QBP stock can expect an annualized dividend payout rate of $0.32 per share yielding about one-and-a-half percent.
Despite the unsettlement regarding stock prices in the aftermath of the global pandemic in 2020, QBP’s performance has remained consistent and therefore many; including Benchmark have given it a “buy” rating and set a price target of $28.00 on its shares. Whilst StockNews.com upgraded their hold rating to a buy hopeful that this will lead to even more positive results for QBP in the future.
Overall, QBP has great potential to drive growth both within itself and its investors’ portfolios alike. With the wider economy starting to recover from the recent pandemic, it makes sense for financial institutions to acquire additional shares in a promising profitable company such as Quanex Building Products.
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