AZEK (NYSE:AZEK) Trading Down 3.3% – What’s Next?

Shares of The AZEK Company Inc. (NYSE:AZEK) traded down 3.3% during trading on Friday . The company traded as low as $44.19 and last traded at $44.58. 463,706 shares changed hands during mid-day trading, a decline of 73% from the average session volume of 1,742,793 shares. The stock had previously closed at $46.10.

Analyst Upgrades and Downgrades

AZEK has been the topic of a number of analyst reports. DA Davidson downgraded shares of AZEK from a “buy” rating to a “neutral” rating and cut their price target for the company from $57.00 to $44.00 in a research report on Wednesday, July 3rd. The Goldman Sachs Group reduced their price target on shares of AZEK from $56.00 to $50.00 and set a “buy” rating on the stock in a research report on Wednesday, July 10th. Citigroup lowered their price objective on shares of AZEK from $50.00 to $44.00 and set a “neutral” rating for the company in a research report on Thursday, July 11th. Benchmark reaffirmed a “buy” rating and set a $55.00 price objective on shares of AZEK in a research note on Friday, August 9th. Finally, BMO Capital Markets decreased their target price on AZEK from $50.00 to $46.00 and set a “market perform” rating for the company in a research note on Friday, August 9th. Six investment analysts have rated the stock with a hold rating and eleven have issued a buy rating to the company’s stock. Based on data from MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus price target of $47.94.

AZEK Stock Down 4.2 %

The stock’s fifty day moving average price is $43.04 and its 200-day moving average price is $44.93. The company has a quick ratio of 2.11, a current ratio of 3.07 and a debt-to-equity ratio of 0.41. The company has a market capitalization of $6.43 billion, a price-to-earnings ratio of 43.44, a P/E/G ratio of 1.43 and a beta of 1.88.

AZEK (NYSE:AZEK) last issued its quarterly earnings results on Wednesday, August 7th. The company reported $0.42 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.36 by $0.06. AZEK had a net margin of 11.35% and a return on equity of 13.38%. The firm had revenue of $434.40 million for the quarter, compared to analyst estimates of $396.89 million. During the same period in the previous year, the business earned $0.29 EPS. The company’s revenue was up 12.1% compared to the same quarter last year. On average, sell-side analysts predict that The AZEK Company Inc. will post 1.05 earnings per share for the current fiscal year.

AZEK declared that its board has authorized a share buyback plan on Monday, June 17th that authorizes the company to repurchase $600.00 million in shares. This repurchase authorization authorizes the company to purchase up to 9.7% of its stock through open market purchases. Stock repurchase plans are typically an indication that the company’s leadership believes its shares are undervalued.

Insider Buying and Selling at AZEK

In other news, Director Pamela J. Edwards bought 600 shares of the firm’s stock in a transaction that occurred on Thursday, August 15th. The stock was acquired at an average cost of $41.70 per share, with a total value of $25,020.00. Following the completion of the purchase, the director now owns 8,708 shares of the company’s stock, valued at $363,123.60. This represents a 0.00 % increase in their ownership of the stock. The acquisition was disclosed in a filing with the SEC, which can be accessed through this link. In other news, CEO Jesse G. Singh sold 20,000 shares of the firm’s stock in a transaction that occurred on Thursday, August 15th. The stock was sold at an average price of $41.47, for a total value of $829,400.00. Following the completion of the sale, the chief executive officer now directly owns 186,705 shares of the company’s stock, valued at $7,742,656.35. This trade represents a 0.00 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this link. Also, Director Pamela J. Edwards bought 600 shares of the firm’s stock in a transaction that occurred on Thursday, August 15th. The shares were acquired at an average cost of $41.70 per share, for a total transaction of $25,020.00. Following the completion of the acquisition, the director now directly owns 8,708 shares in the company, valued at $363,123.60. The trade was a 0.00 % increase in their position. The disclosure for this purchase can be found here. Corporate insiders own 3.10% of the company’s stock.

Hedge Funds Weigh In On AZEK

Large investors have recently modified their holdings of the stock. Tidal Investments LLC lifted its holdings in AZEK by 3.7% during the 1st quarter. Tidal Investments LLC now owns 7,060 shares of the company’s stock worth $355,000 after purchasing an additional 251 shares during the last quarter. Signaturefd LLC increased its position in AZEK by 32.7% during the 2nd quarter. Signaturefd LLC now owns 2,157 shares of the company’s stock worth $91,000 after buying an additional 532 shares during the period. Treasurer of the State of North Carolina lifted its holdings in shares of AZEK by 1.0% during the fourth quarter. Treasurer of the State of North Carolina now owns 58,496 shares of the company’s stock worth $2,237,000 after buying an additional 570 shares in the last quarter. ORG Partners LLC bought a new stake in shares of AZEK in the first quarter valued at about $35,000. Finally, Whittier Trust Co. acquired a new position in shares of AZEK in the first quarter valued at about $37,000. 97.44% of the stock is owned by institutional investors.

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.