SiteOne Landscape Supply, Inc. (NYSE:SITE) experienced a significant stock price increase of 8.8% during mid-day trading on Wednesday, following the release of a stronger-than-expected earnings report. The stock reached a peak of $134.54 before closing at $134.1060, a notable rise from its previous close of $123.24. Approximately 157,602 shares were traded, a sharp decline of 70% compared to the average daily volume of 523,518 shares.
The company reported earnings of $1.31 per share (EPS) for the quarter, surpassing analysts’ consensus estimates of $1.22 by $0.09. Revenue for the quarter stood at $1.26 billion, aligning with market expectations. SiteOne also indicated a net margin of 2.98% and a return on equity of 8.78%. This marks a 4.1% increase in revenue compared to the same period last year, when the company reported an EPS of $0.97.
Analysts Adjust Ratings and Price Targets
Following the earnings announcement, several research firms updated their ratings and price targets for SiteOne Landscape Supply. Zacks Research downgraded the stock from a “hold” rating to a “strong sell” rating. On October 13, 2023, the Goldman Sachs Group lowered their price target on SITE from $158.00 to $138.00, maintaining a “neutral” rating. Conversely, Barclays increased its price target from $106.00 to $120.00, assigning an “underweight” rating.
Royal Bank of Canada also adjusted its target, raising it from $143.00 to $151.00 while issuing a “sector perform” rating. William Blair reaffirmed a “market perform” rating for the company. Currently, five analysts rate the stock as a Buy, six as Hold, and two as Sell. According to data from MarketBeat, SiteOne Landscape Supply has a consensus rating of “Hold” and a target price of $150.70.
Investor Activity in SiteOne Landscape Supply
Recent trading activity has seen several large investors adjusting their positions in SiteOne Landscape Supply. Price T Rowe Associates Inc. raised its stake by 12.2% during the first quarter, owning 6,079,615 shares valued at approximately $738.3 million after acquiring an additional 660,081 shares. T. Rowe Price Investment Management Inc. also increased its holdings by 31.0%, owning 2,092,742 shares valued at about $254.1 million.
Bamco Inc. raised its stake by 14.2%, now holding 1,941,817 shares valued at $234.8 million. State Street Corp increased its holdings by 1.7%, owning 777,354 shares valued at $94 million. Ameriprise Financial Inc. also boosted its stake by 21.3%, holding 773,358 shares valued at approximately $93.9 million.
SiteOne Landscape Supply’s stock performance reflects a robust market presence, with its fifty-day moving average at $132.72 and its 200-day moving average at $127.26. The company has a market capitalization of $5.78 billion, a price-to-earnings (PE) ratio of 42.09, and a price-to-earnings-growth (PEG) ratio of 2.42.
SiteOne Landscape Supply, headquartered in the United States, specializes in the wholesale distribution of landscape supplies across North America. The company offers a wide range of products, including irrigation systems, fertilizers, nursery goods, and outdoor lighting solutions, catering to both commercial and residential markets.
