EMG Holdings L.P. Makes New Investment in The AZEK Company Inc. (NYSE:AZEK)

EMG Holdings L.P. acquired a new position in shares of The AZEK Company Inc. (NYSE:AZEK) in the second quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The fund acquired 40,911 shares of the company’s stock, valued at approximately $1,724,000. AZEK makes up approximately 0.8% of EMG Holdings L.P.’s investment portfolio, making the stock its 18th largest position.

Other hedge funds and other institutional investors have also recently added to or reduced their stakes in the company. Quadrant Capital Group LLC increased its holdings in AZEK by 45.9% during the 4th quarter. Quadrant Capital Group LLC now owns 728 shares of the company’s stock worth $28,000 after purchasing an additional 229 shares in the last quarter. ORG Partners LLC bought a new stake in AZEK during the 1st quarter worth approximately $35,000. Whittier Trust Co. bought a new stake in AZEK during the 1st quarter worth approximately $37,000. Principal Securities Inc. bought a new stake in AZEK during the 4th quarter worth approximately $44,000. Finally, Versant Capital Management Inc boosted its stake in shares of AZEK by 5,452.2% in the 2nd quarter. Versant Capital Management Inc now owns 1,277 shares of the company’s stock worth $54,000 after buying an additional 1,254 shares during the last quarter. 97.44% of the stock is owned by institutional investors.

Insider Transactions at AZEK

In other news, Director Pamela J. Edwards bought 600 shares of AZEK stock in a transaction that occurred on Thursday, August 15th. The shares were acquired at an average price of $41.70 per share, with a total value of $25,020.00. Following the completion of the purchase, the director now directly owns 8,708 shares in the company, valued at $363,123.60. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. In other news, Director Pamela J. Edwards bought 600 shares of AZEK stock in a transaction that occurred on Thursday, August 15th. The shares were acquired at an average price of $41.70 per share, with a total value of $25,020.00. Following the completion of the purchase, the director now directly owns 8,708 shares in the company, valued at $363,123.60. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. Also, CEO Jesse G. Singh sold 13,000 shares of the stock in a transaction on Wednesday, July 10th. The shares were sold at an average price of $41.75, for a total value of $542,750.00. Following the completion of the transaction, the chief executive officer now directly owns 1,024,444 shares in the company, valued at approximately $42,770,537. The disclosure for this sale can be found here. Insiders own 3.10% of the company’s stock.

Analyst Ratings Changes

A number of equities analysts have recently weighed in on the company. Loop Capital cut their target price on AZEK from $58.00 to $52.00 and set a “buy” rating on the stock in a research note on Thursday, July 11th. The Goldman Sachs Group cut their target price on AZEK from $56.00 to $50.00 and set a “buy” rating on the stock in a research note on Wednesday, July 10th. Benchmark restated a “buy” rating and issued a $55.00 target price on shares of AZEK in a research note on Friday, August 9th. Royal Bank of Canada cut their target price on AZEK from $49.00 to $46.00 and set an “outperform” rating on the stock in a research note on Thursday, August 8th. Finally, DA Davidson downgraded AZEK from a “buy” rating to a “neutral” rating and cut their target price for the stock from $57.00 to $44.00 in a research note on Wednesday, July 3rd. Five equities research analysts have rated the stock with a hold rating and twelve have assigned a buy rating to the stock. Based on data from MarketBeat.com, AZEK currently has an average rating of “Moderate Buy” and an average price target of $48.24.

AZEK Trading Up 3.8 %

NYSE:AZEK opened at $46.90 on Friday. The company has a market cap of $6.82 billion, a P/E ratio of 45.83, a P/E/G ratio of 1.29 and a beta of 1.87. The stock’s fifty day moving average price is $42.49 and its two-hundred day moving average price is $45.06. The AZEK Company Inc. has a 1 year low of $25.03 and a 1 year high of $50.78. The company has a debt-to-equity ratio of 0.41, a current ratio of 3.07 and a quick ratio of 2.11.

AZEK (NYSE:AZEK) last posted its earnings results on Wednesday, August 7th. The company reported $0.42 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.36 by $0.06. The firm had revenue of $434.40 million for the quarter, compared to the consensus estimate of $396.89 million. AZEK had a return on equity of 13.38% and a net margin of 11.35%. The business’s quarterly revenue was up 12.1% on a year-over-year basis. During the same quarter in the prior year, the business posted $0.29 earnings per share. As a group, analysts expect that The AZEK Company Inc. will post 1.05 EPS for the current year.

AZEK declared that its Board of Directors has initiated a share buyback plan on Monday, June 17th that authorizes the company to buyback $600.00 million in outstanding shares. This buyback authorization authorizes the company to repurchase up to 9.7% of its shares through open market purchases. Shares buyback plans are usually a sign that the company’s management believes its shares are undervalued.

About AZEK

The AZEK Company Inc engages in the design, manufacturing, and selling of building products for residential, commercial, and industrial markets in the United States and Canada. It operates through two segments: Residential and Commercial. The Residential segment designs and manufactures engineered outdoor living products, such as decking, railing, trim and molding, siding and cladding, pergolas and cabanas, and accessories under the TimberTech, AZEK Exteriors, VERSATEX, ULTRALOX, StruXure, and INTEX brands.