DA Davidson slashes price target on Cornerstone Building Brands Inc. [CNR] – find out why.

Cornerstone Building Brands Inc. [NYSE: CNR] gained 17.08% on the last trading session, reaching $8.57 price per share at the time. The company report on August 11, 2020 that Cornerstone Building Brands Announces Second-Quarter 2020 Results.

Cornerstone Building Brands, Inc. (NYSE: CNR) (the “Company”), a leading provider of exterior building products, today reported second-quarter 2020 net sales of $1,084.9 million and net income of $26.5 million or 21 cents per diluted share. This compares with net sales of $1,295.5 million and net income of $17.3 million or 14 cents per diluted share in the same quarter last year. Adjusted for the March 2020 acquisition of Kleary Masonry, Inc. first-half 2020 pro forma net sales1 were $2,207.1 million, down 7.9 percent compared with pro forma net sales1 for first-half 2019. The decrease was driven by lower volumes as a result of the COVID-19 pandemic.

Adjusted EBITDA1 for the second quarter of 2020 was $159.1 million or 14.7 percent of net sales, an improvement of 130 basis points from the same pro forma period a year ago. The improvement was due to effective near-term expense management and structural cost reductions partially offset by the impacts from lower demand as a result of the COVID-19 pandemic. For the first-half 2020, pro forma Adjusted EBITDA1 was $257.2 million or 11.7 percent of pro forma net sales1, an improvement of 4 percent or 140 basis points from the same pro forma period a year ago.

Cornerstone Building Brands Inc. represents 126.09 million in outstanding shares, while the company has a total market value of $1.07 billion with the latest information. CNR stock price has been found in the range of $8.29 to $9.40.

If compared to the average trading volume of 593.38K shares, CNR reached a trading volume of 3531668 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here is what top equities market gurus are saying about Cornerstone Building Brands Inc. [CNR]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for CNR shares is $6.38 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on CNR stock is a recommendation set at 2.70. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

DA Davidson have made an estimate for Cornerstone Building Brands Inc. shares, keeping their opinion on the stock as Neutral, with their previous recommendation back on March 13, 2020.

The Average True Range (ATR) for Cornerstone Building Brands Inc. is set at 0.43, with the Price to Sales ratio for CNR stock in the period of the last 12 months amounting to 0.22. The Price to Book ratio for the last quarter was 3.11, with the Price to Cash per share for the same quarter was set at 3.83.

Trading performance analysis for CNR stock

Cornerstone Building Brands Inc. [CNR] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 24.20. With this latest performance, CNR shares gained by 74.90% in over the last four-week period, additionally sinking by -4.88% over the last 6 months – not to mention a rise of 83.51% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for CNR stock in for the last two-week period is set at 83.61, with the RSI for the last a single of trading hit 90.61, and the three-weeks RSI is set at 76.21 for Cornerstone Building Brands Inc. [CNR]. The present Moving Average for the last 50 days of trading for this stock 5.96, while it was recorded at 7.40 for the last single week of trading, and 6.47 for the last 200 days.

Cornerstone Building Brands Inc. [CNR]: A deeper dive into fundamental analysis

Operating Margin for any stock indicates how profitable investing would be, and Cornerstone Building Brands Inc. [CNR] shares currently have an operating margin of +5.79 and a Gross Margin at +18.63. Cornerstone Building Brands Inc.’s Net Margin is presently recorded at -0.31.

Return on Total Capital for CNR is now 10.94, given the latest momentum, and Return on Invested Capital for the company is -0.61. Return on Equity for this stock declined to -2.43, with Return on Assets sitting at -0.46. When it comes to the capital structure of this company, Cornerstone Building Brands Inc. [CNR] has a Total Debt to Total Equity ratio set at 374.07. Additionally, CNR Total Debt to Total Capital is recorded at 78.91, with Total Debt to Total Assets ending up at 62.88. Long-Term Debt to Equity for the company is recorded at 363.59, with the Long-Term Debt to Total Capital now at 76.70.

Reflecting on the efficiency of the workforce at the company, Cornerstone Building Brands Inc. [CNR] managed to generate an average of -$766 per employee. Receivables Turnover for the company is 12.63 with a Total Asset Turnover recorded at a value of 1.47.Cornerstone Building Brands Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 1.70 and a Current Ratio set at 2.40.

Cornerstone Building Brands Inc. [CNR]: An earnings per share (EPS) analysis

With the latest financial reports released by the company, Cornerstone Building Brands Inc. posted 0.3/share EPS, while the average EPS was predicted by analysts to be reported at 0.23/share. When compared, the two values demonstrate that the company surpassed the estimates by a Surprise Factor of 30.40%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for CNR. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Cornerstone Building Brands Inc. go to 36.30%.

An analysis of insider ownership at Cornerstone Building Brands Inc. [CNR]

There are presently around $978 million, or 90.80% of CNR stock, in the hands of institutional investors. The top three institutional holders of CNR stocks are: CLAYTON, DUBILIER & RICE, LLC with ownership of 62,071,743, which is approximately 0% of the company’s market cap and around 2.20% of the total institutional ownership; GOLDEN GATE PRIVATE EQUITY, INC., holding 16,739,402 shares of the stock with an approximate value of $143.46 million in CNR stocks shares; and COLISEUM CAPITAL MANAGEMENT, LLC, currently with $48.16 million in CNR stock with ownership of nearly 3.222% of the company’s market capitalization.

65 institutional holders increased their position in Cornerstone Building Brands Inc. [NYSE:CNR] by around 5,071,685 shares. Additionally, 58 investors decreased positions by around 5,836,704 shares, while 20 investors held positions by with 103,241,608 shares. The mentioned changes placed institutional holdings at 114,149,997 shares, according to the latest SEC report filing. CNR stock had 22 new institutional investments in for a total of 3,272,565 shares, while 25 institutional investors sold positions of 2,209,002 shares during the same period.

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