Analysts: PGT Innovations, Inc. (PGTI) Has Over 28.01% Upside Potential

It has been reported that multiple insider activity took place at PGT Innovations, Inc. (PGTI). Director Hershberger Rodney sold 19,663 shares for $1,125,200 in transaction occurred on 2019/04/17. After making this transaction, Director owns a direct stake of 7 shares, worth $17,474,356, as per the last closing price. On 2019/03/06 Jackson Jeffrey T, PRES. AND CEO at PGTI, purchased 4,000 shares at an average price of $14.06 per share. The new stake is valued at $5,450,782.

President and CEO, Jackson Jeffrey T had invested in 3,000 shares for $346,984 through a trade on 2019/03/05. Following this activity, the insider holds 8 shares worth $5,388,662 as of recent close.

iShares Core S&P Smallcap ETF revealed as top hedge fund owner in PGT Innovations, Inc. (PGTI) with a stake of over 3.46M PGTI shares as of March 30, with a market value of approx. $47.91M as of today. The second largest holder, Price (T.Rowe) Small Cap Stock Fund, with 1.56M shares which equates to $21.61M worth of the stock. At third is Vanguard Total Stock Market Index Fund, which stood pat with 1.4M shares, a 3.35% position in PGT Innovations, Inc., worth $30.16M. The insider holding in stood at 3.1% while institutions hold 94.1%.

PGT Innovations, Inc. (NYSE:PGTI) rose 0.98% in recent trade and currently has a stock-market value of $900.27M. The shares finished at $15.53, after trading as low as $15.27 earlier in the session. It hit an intraday high Wednesday at $15.6. Trading activity significantly weakened as the volume at ready counter decreased to 479,092 shares versus 503,305 in average daily trading volume over the past 20 days. So far this year, the volume has averaged about 544,228 shares. The stock is now 16.33% above against its bear-market low of $13.35 on March 25, 2019. It has retreated -69.99% since it’s 52-week high of $26.4 reached in September. Now the market price is down -16.28% on the year and down -2.02% YTD.

PGTI stock’s 50 day simple moving average (SMA 50) price is $14.49 and its 200-day simple moving average (SMA 200) price is $18.55. The company’s stock currently has a total float of 56.23M shares. Its weekly volatility is hovering around 1.98% and felt 2.3% volatility in price over a month. On the upside, the share price will test short term resistance at around $15.66. On a downside, the stock is likely to find some support, which begins at $15.33. The failure to get near-term support could push it to $15.14.

It had seen a positive analyst call from KeyBanc Capital Markets, which upgraded the stock from Sector Weight to Overweight on March 11. Analysts at Dougherty & Company, maintained the company shares at Buy on February 28 but switched target price from $27 to $22. The stock lost favor of Wells Fargo analysts who expressed their lack of confidence in it using a downgrade from Outperform to Market Perform on February 28. JP Morgan, released new analyst coverage on December 18, calling the stock is Neutral.

When looking at valuations, PGT Innovations, Inc. (PGTI) has a cheap P/E of 15.41x as compared to industry average of 21.54x. Moreover, it trades for 13.33 times the next 12 months of expected earnings. Also, it is trading at rather expensive levels at just over 2.28x price/book and 1.23x price/sales. Compared to others, PGT Innovations, Inc. is in a different league with regards to profitability, having net margins of 7.5%. To put some perspective around this, the industry’s average net margin is 5.14%. PGTI’s ROE is 16.1%, which is also considerably better than the industry’s ROE of 6.92%. It’s also very liquid in the near term, with a current ratio of 3. The stock has a debt/capital of 0.93.

Shares of PGTI have gained 5.1% since the company’s most recent earnings report. Over the past 12 fiscal quarters, PGT Innovations, Inc. (NYSE:PGTI) has topped consensus earnings estimates in 8 quarters (66%), missed earnings in 2 quarters (16%), whereas at 2 occasion EPS met analyst expectations. PGTI last reported earnings that exceeded expectations. The company raked in $0.16 per share, -98.77% change on the same period last year. That was better than consensus for $0.14. Revenue for the recent quarter stood at $173.74 million, up 24% on last year and below the $175.1 million predicted by analysts. For this quarter, Wall Street analysts forecast revenue in a range of $201.5 million to $212 million, which should be compared with $164.25 million generated last year. EPS is seen in a range of $0.28 to $0.34, against the $0.32 reported a year ago.