WESCO International (NYSE:WCC) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research report issued to clients and investors on Wednesday, December 27th.
According to Zacks, “WESCO is currently benefiting from strength across all end markets and geographic regions, improved sales execution and positive pricing. The company continues with its focus on delivering above-average sales growth, profitability improvement, strong cash flow generation and increasing shareholder value. It continues to invest progressively in the One WESCO initiative aimed at creating extensive supply chain management solutions. WESCO has a comprehensive portfolio of products and services, and a sizable global footprint, which will help drive growth, going forward. However, foreign exchange risk, supplier concentration, a significant debt load and limited liquidity remain concerns. Besides, mid-term prospects do not appear to be improving in the construction market which is a headwind. Year to date, the stock has outperformed the industry it belongs to.”
Other equities research analysts have also issued reports about the stock. ValuEngine raised shares of WESCO International from a “hold” rating to a “buy” rating in a report on Friday, December 1st. KeyCorp reissued a “buy” rating and issued a $64.00 target price on shares of WESCO International in a report on Thursday, October 12th. Robert W. Baird reissued a “hold” rating and issued a $56.00 target price on shares of WESCO International in a report on Wednesday, October 4th. Standpoint Research lowered shares of WESCO International from a “buy” rating to a “hold” rating in a report on Wednesday, October 18th. They noted that the move was a valuation call. Finally, Wolfe Research downgraded WESCO International from an “outperform” rating to a “market perform” rating in a research note on Friday, October 27th. One investment analyst has rated the stock with a sell rating, seven have issued a hold rating and seven have given a buy rating to the stock. The stock has a consensus rating of “Hold” and an average target price of $68.54.
Shares of WESCO International (NYSE WCC) traded down $0.05 during trading hours on Wednesday, reaching $64.80. The company’s stock had a trading volume of 282,952 shares, compared to its average volume of 408,450. WESCO International has a fifty-two week low of $48.95 and a fifty-two week high of $76.15. The stock has a market cap of $3,060.00, a price-to-earnings ratio of 16.66, a price-to-earnings-growth ratio of 1.53 and a beta of 1.95. The company has a current ratio of 2.31, a quick ratio of 1.42 and a debt-to-equity ratio of 0.65.
WESCO International (NYSE:WCC) last released its quarterly earnings results on Thursday, October 26th. The technology company reported $1.12 EPS for the quarter, beating the Thomson Reuters’ consensus estimate of $1.03 by $0.09. WESCO International had a net margin of 2.52% and a return on equity of 9.11%. The firm had revenue of $2 billion during the quarter, compared to analyst estimates of $1.93 billion. During the same quarter in the prior year, the firm earned $1.05 EPS. The business’s revenue for the quarter was up 7.8% compared to the same quarter last year. sell-side analysts anticipate that WESCO International will post 3.88 EPS for the current year.
WESCO International declared that its board has approved a share repurchase plan on Wednesday, December 13th that permits the company to buyback $300.00 million in shares. This buyback authorization permits the technology company to purchase shares of its stock through open market purchases. Stock buyback plans are often a sign that the company’s board believes its shares are undervalued.
In other news, Director James Louis Singleton sold 3,288 shares of the stock in a transaction that occurred on Wednesday, December 13th. The stock was sold at an average price of $64.25, for a total transaction of $211,254.00. Following the completion of the transaction, the director now directly owns 19,477 shares in the company, valued at approximately $1,251,397.25. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. 1.90% of the stock is currently owned by corporate insiders.
A number of institutional investors and hedge funds have recently modified their holdings of WCC. Bank of New York Mellon Corp lifted its position in WESCO International by 5.4% in the second quarter. Bank of New York Mellon Corp now owns 437,185 shares of the technology company’s stock worth $25,051,000 after buying an additional 22,204 shares during the last quarter. Airain ltd bought a new stake in WESCO International in the second quarter worth $1,983,000. Neuberger Berman Group LLC lifted its position in WESCO International by 3.4% in the second quarter. Neuberger Berman Group LLC now owns 9,878 shares of the technology company’s stock worth $566,000 after buying an additional 326 shares during the last quarter. Systematic Financial Management LP lifted its position in WESCO International by 22.7% in the second quarter. Systematic Financial Management LP now owns 31,130 shares of the technology company’s stock worth $1,784,000 after buying an additional 5,765 shares during the last quarter. Finally, Capital Fund Management S.A. bought a new stake in WESCO International in the second quarter worth $1,530,000. Institutional investors own 98.74% of the company’s stock.
About WESCO International
WESCO International, Inc is a distributor of products and provider of supply chain management and logistics services used in industrial, construction, utility and commercial, institutional and government (CIG) markets. The Company is a provider of electrical, industrial and communications maintenance, repair and operating (MRO) and original equipment manufacturers (OEM) products, construction materials, and supply chain management and logistics services.
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