Forterra Inc. [NASDAQ: FRTA] stock went on an upward path that rose over 6.93% on Thursday, amounting to a one-week price increase of more than 19.39%. The company report on October 5, 2020 that Forterra Announces Rating Upgrade by S&P.
Forterra, Inc. (“Forterra” or “the Company”) (NASDAQ: FRTA), a leading manufacturer of water and drainage infrastructure pipe and products in the United States and Eastern Canada, today announced that on October 2, 2020, S&P Global Ratings (“S&P”) upgraded the Company’s issuer credit rating to B from B-, and issuer-level ratings on the Company’s term loan and senior secured notes to B from B-. The outlook remains stable.
Forterra’s Executive Vice President and CFO Charlie Brown commented, “We are pleased to see the rating upgrade by S&P following Moody’s upgrade last week. This again reflects the significant improvements we have made recently as well as the momentum ahead of us. We will continue to execute on our five improvement pillars to further expand unit margins, decrease working capital investments, and use the increased cash flow to reduce our debt to achieve our leverage target of 3.0-3.5x in the near term.”.
Over the last 12 months, FRTA stock rose by 105.67%. The one-year Forterra Inc. stock forecast points to a potential upside of 14.3. The average equity rating for FRTA stock is currently 2.30, trading closer to a bullish pattern in the stock market.
The market cap for the stock reached $930.18 million, with 65.09 million shares outstanding and 18.91 million shares in the current float. Compared to the average trading volume of 628.18K shares, FRTA stock reached a trading volume of 1175207 in the most recent trading day, which is why market watchdogs consider the stock to be active.
Guru’s Opinion on Forterra Inc. [FRTA]:
Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for FRTA shares is $16.92 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on FRTA stock is a recommendation set at 2.30. 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.
Deutsche Bank have made an estimate for Forterra Inc. shares, keeping their opinion on the stock as Buy, with their previous recommendation back on September 24, 2020. While these analysts kept the previous recommendation, RBC Capital Mkts raised their target price from $15 to $17. The new note on the price target was released on September 21, 2020, representing the official price target for Forterra Inc. stock. Previously, the target price had yet another raise to $19, while SunTrust analysts kept a Buy rating on FRTA stock.
The Average True Range (ATR) for Forterra Inc. is set at 0.94, with the Price to Sales ratio for FRTA stock in the period of the last 12 months amounting to 0.59. The Price to Book ratio for the last quarter was 6.97, with the Price to Cash per share for the same quarter was set at 0.82. Price to Free Cash Flow for FRTA in the course of the last twelve months was 5.01 with Quick ratio for the last quarter at 1.30.
FRTA Stock Performance Analysis:
Forterra Inc. [FRTA] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 19.39. With this latest performance, FRTA shares gained by 4.17% in over the last four-week period, additionally plugging by 110.76% over the last 6 months – not to mention a rise of 105.67% 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 FRTA stock in for the last two-week period is set at 60.11, with the RSI for the last a single of trading hit 69.86, and the three-weeks RSI is set at 57.51 for Forterra Inc. [FRTA]. The present Moving Average for the last 50 days of trading for this stock 13.55, while it was recorded at 13.25 for the last single week of trading, and 11.10 for the last 200 days.
Insight into Forterra Inc. Fundamentals:
Operating Margin for any stock indicates how profitable investing would be, and Forterra Inc. [FRTA] shares currently have an operating margin of +4.89 and a Gross Margin at +16.28. Forterra Inc.’s Net Margin is presently recorded at -0.48.
Return on Total Capital for FRTA is now 5.19, given the latest momentum, and Return on Invested Capital for the company is -0.52. Return on Equity for this stock declined to -6.40, with Return on Assets sitting at -0.40. When it comes to the capital structure of this company, Forterra Inc. [FRTA] has a Total Debt to Total Equity ratio set at 1,087.41. Additionally, FRTA Total Debt to Total Capital is recorded at 91.58, with Total Debt to Total Assets ending up at 72.41. Long-Term Debt to Equity for the company is recorded at 1,056.13, with the Long-Term Debt to Total Capital now at 88.94.
Reflecting on the efficiency of the workforce at the company, Forterra Inc. [FRTA] managed to generate an average of -$1,601 per employee. Receivables Turnover for the company is 7.57 with a Total Asset Turnover recorded at a value of 0.84.Forterra Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 1.30 and a Current Ratio set at 2.30.
FRTA Stock EPS
With the latest financial reports released by the company, Forterra Inc. posted 0.35/share EPS, while the average EPS was predicted by analysts to be reported at 0.12/share. When compared, the two values demonstrate that the company surpassed the estimates by a Surprise Factor of 191.70%. 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 FRTA.
Forterra Inc. [FRTA] Insider Position Details
There are presently around $917 million, or 97.80% of FRTA stock, in the hands of institutional investors. The top three institutional holders of FRTA stocks are: LONE STAR GLOBAL ACQUISITIONS, LTD. with ownership of 45,107,250, which is approximately 0% of the company’s market cap and around 1.50% of the total institutional ownership; ELECTRON CAPITAL PARTNERS, LLC, holding 3,338,207 shares of the stock with an approximate value of $48.4 million in FRTA stocks shares; and PARADIGM CAPITAL MANAGEMENT INC/NY, currently with $23.45 million in FRTA stock with ownership of nearly 3.68% of the company’s market capitalization.
Positions in Forterra Inc. stocks held by institutional investors increased at the end of July and at the time of the July reporting period, where 49 institutional holders increased their position in Forterra Inc. [NASDAQ:FRTA] by around 3,058,532 shares. Additionally, 53 investors decreased positions by around 2,077,222 shares, while 11 investors held positions by with 58,077,462 shares. The mentioned changes placed institutional holdings at 63,213,216 shares, according to the latest SEC report filing. FRTA stock had 15 new institutional investments in for a total of 1,184,194 shares, while 16 institutional investors sold positions of 466,211 shares during the same period.