Zacks Investment Research Downgrades Gibraltar Industries (ROCK) to Sell

Gibraltar Industries (NASDAQ:ROCK) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a report issued on Tuesday.

According to Zacks, “Gibraltar has been facing the brunt of rising input costs that have been hurting the company’s performance to some extent. The company also expects commodity price volatility to continue in the future. Meanwhile, although Gibraltar’s shares have outperformed the industry so far this year, earnings estimates have declined for 2018 and 2019 over the last 60 days, reflecting analysts' concern over the stock's earnings growth potential. The company’s valuation also looks a bit overvalued compared with the industry over the past year. Although Gibraltar is making well-planned acquisitions, improving operational excellence, advancing technological know-how and undertaking calculated portfolio management moves, we wait for better visibility.”

Several other research firms also recently weighed in on ROCK. BidaskClub raised Gibraltar Industries from a “buy” rating to a “strong-buy” rating in a research report on Saturday, September 22nd. ValuEngine raised Gibraltar Industries from a “hold” rating to a “buy” rating in a research report on Saturday, August 18th. One investment analyst has rated the stock with a sell rating, two have given a buy rating and one has given a strong buy rating to the stock. Gibraltar Industries currently has an average rating of “Buy” and an average price target of $42.00.

Shares of NASDAQ:ROCK opened at $45.80 on Tuesday. The company has a debt-to-equity ratio of 0.37, a current ratio of 2.89 and a quick ratio of 2.32. The stock has a market cap of $1.47 billion, a P/E ratio of 26.81 and a beta of 1.79. Gibraltar Industries has a 12-month low of $29.50 and a 12-month high of $49.10.

Gibraltar Industries (NASDAQ:ROCK) last issued its quarterly earnings data on Thursday, July 26th. The construction company reported $0.71 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.55 by $0.16. The firm had revenue of $266.04 million during the quarter, compared to the consensus estimate of $261.93 million. Gibraltar Industries had a return on equity of 12.37% and a net margin of 7.59%. The company’s quarterly revenue was up 7.4% on a year-over-year basis. During the same period last year, the company earned $0.43 EPS. sell-side analysts forecast that Gibraltar Industries will post 2.08 EPS for the current year.

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Northern Trust Corp grew its position in Gibraltar Industries by 9.3% in the 2nd quarter. Northern Trust Corp now owns 431,886 shares of the construction company’s stock valued at $16,196,000 after acquiring an additional 36,616 shares in the last quarter. WINTON GROUP Ltd acquired a new position in Gibraltar Industries in the 2nd quarter valued at about $5,272,000. Global X Management Co LLC grew its position in Gibraltar Industries by 19.0% in the 2nd quarter. Global X Management Co LLC now owns 9,145 shares of the construction company’s stock valued at $343,000 after acquiring an additional 1,457 shares in the last quarter. Tower Research Capital LLC TRC grew its position in Gibraltar Industries by 93.3% in the 2nd quarter. Tower Research Capital LLC TRC now owns 2,900 shares of the construction company’s stock valued at $109,000 after acquiring an additional 1,400 shares in the last quarter. Finally, Bank of America Corp DE grew its position in Gibraltar Industries by 6.5% in the 2nd quarter. Bank of America Corp DE now owns 201,763 shares of the construction company’s stock valued at $7,566,000 after acquiring an additional 12,233 shares in the last quarter.

Gibraltar Industries Company Profile

Gibraltar Industries, Inc manufactures and distributes building products in North America and Asia. It operates through three segments: Residential Products, Industrial and Infrastructure Products, and Renewable Energy and Conservation. The Residential Products segment offers roof and foundation ventilation products and accessories, such as solar powered units; mail and electronic package solutions, including single mailboxes, cluster style mail and parcel boxes for single and multi-family housing, and electronic package locker systems; roof edgings and flashings; soffits and trims; drywall corner beads; metal roofing products and accessories; rain dispersion products comprising gutters and accessories; and exterior retractable awnings.

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