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Eagle Materials Inc. (NYSE:EXP): A Fundamentally Weighted Stock for Long-Term Investors

Eagle Materials Inc. (NYSE:EXP) previous close was $147.57 while the outstanding shares total 42.00M. The firm has a beta of 1.22, a 12-month trailing P/E ratio of 19.10, and a growth ratio of 2.39. EXP’s shares traded lower over the last trading session, losing -5.64% on 05/19/21. The shares fell to a low of $135.38 before closing at $139.25. Intraday shares traded counted 1.18 million, which was -217.19% lower than its 30-day average trading volume of 372.42K. The stock’s Relative Strength Index (RSI) is 43.89, with weekly volatility at 3.50% and ATR at 4.61. The EXP stock’s 52-week price range has touched low of $59.96 and a $153.30 high.

Investors have identified the Building Materials company Eagle Materials Inc. as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $5.79 billion, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.

Eagle Materials Inc. (EXP) Fundamentals that are to be considered.

When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. In terms of their assets, the company currently has 528.56 million total, with 163.06 million as their total liabilities.

EXP were able to record 496.48 million as free cash flow during the 08/04/2021 quarter of the year, this saw their quarterly net cash flow reduce by 29.14 million. In cash movements, the company had a total of 542.02 million as operating cash flow.

Potential earnings growth for Eagle Materials Inc. (EXP)

In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the 08/04/2021 quarter of the year, Eagle Materials Inc. recorded a total of 404.67 million in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 15.26% coming in sequential stages and their sales for the 08/04/2021 quarter reducing by -10.63%.

What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 291.29 million trying to sell their products during the last quarter, with the result yielding a gross income of 113.38 million. This allows shareholders to hold on to 42.00M with the recently reported earning now reading 1.94 cents per share. This is a figure that compared to analyst’s prediction for their 08/04/2021 (1.94 cents a share).

Having a look at the company’s valuation, the company is expected to record 8.00 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on EXP sounds very interesting.

Is the stock of EXP attractive?

In related news, President and CEO, Haack Michael sold 9,907 shares of the company’s stock in a transaction that recorded on Apr 06. The sale was performed at an average price of 137.78, for a total value of 1,364,986. As the sale deal closes, the President & CEO, Haack Michael now sold 10,918 shares of the company’s stock, valued at 1,453,418. Also, President (American Gypsum), Wentzel Steven L sold 3,000 shares of the company’s stock in a deal that was recorded on Mar 08. The shares were price at an average price of 129.44 per share, with a total market value of 388,320. Following this completion of acquisition, the Director, STEWART RICHARD ROSS now holds 3,500 shares of the company’s stock, valued at 437,096. In the last 6 months, insiders have changed their ownership in shares of company stock by 0.80%.

9 out of 13 analysts covering the stock have rated it a Buy, while 3 have maintained a Hold recommendation on Eagle Materials Inc.. 0 analysts has assigned a Sell rating on the EXP stock. The 12-month mean consensus price target for the company’s shares has been set at $139.58.

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