Zacks Investment Research upgraded shares of WESCO International (NYSE:WCC) from a hold rating to a buy rating in a research report released on Tuesday. The brokerage currently has $72.00 price objective on the technology company’s stock.
According to Zacks, “WESCO reported strong fourth-quarter 2017 results. Both earnings and revenues increased on a year-over-year basis. Top-line growth was driven by strong end-market results, product and services portfolio strength and robust performance in certain geographies. Moreover, focus on growth and pricing strategies accelerated the sales number. The company continues with its focus on delivering above-average sales growth, profitability improvement, strong cash flow generation and increasing shareholder value. It continues to invest progressively in the One WESCO initiative aimed at creating extensive supply chain management solutions. However, supplier concentration, a significant debt load and limited liquidity remain concerns. In the past year, the stock has underperformed the industry it belongs to.”
Several other research analysts have also issued reports on the stock. ValuEngine lowered shares of WESCO International from a buy rating to a hold rating in a research report on Friday, February 2nd. UBS Group began coverage on shares of WESCO International in a research report on Tuesday, January 23rd. They issued a neutral rating and a $70.00 price target for the company. Credit Suisse Group set a $70.00 price target on shares of WESCO International and gave the stock an outperform rating in a research report on Tuesday, October 31st. Wells Fargo & Co increased their price target on shares of WESCO International from $67.00 to $75.00 and gave the stock an outperform rating in a research report on Friday, October 27th. Finally, Wolfe Research lowered shares of WESCO International from an outperform rating to a market perform rating in a research report on Friday, October 27th. One research analyst has rated the stock with a sell rating, seven have issued a hold rating and seven have assigned a buy rating to the company. The company presently has an average rating of Hold and an average price target of $69.00.
WESCO International (NYSE:WCC) last announced its quarterly earnings data on Thursday, February 1st. The technology company reported $1.03 EPS for the quarter, beating the Zacks’ consensus estimate of $0.98 by $0.05. The business had revenue of $2 billion during the quarter, compared to analyst estimates of $1.93 billion. WESCO International had a net margin of 2.13% and a return on equity of 9.10%. The firm’s revenue for the quarter was up 11.3% on a year-over-year basis. During the same quarter in the prior year, the business earned $0.96 earnings per share. sell-side analysts forecast that WESCO International will post 4.67 EPS for the current fiscal year.
WESCO International announced that its board has authorized a stock buyback program on Wednesday, December 13th that permits the company to buyback $300.00 million in shares. This buyback authorization permits the technology company to reacquire shares of its stock through open market purchases. Shares buyback programs are typically an indication that the company’s management believes its stock is undervalued.
In other news, Director James Louis Singleton sold 3,288 shares of the firm’s stock in a transaction that occurred on Wednesday, December 13th. The shares were sold at an average price of $64.25, for a total transaction of $211,254.00. Following the completion of the sale, the director now owns 19,477 shares of the company’s stock, valued at $1,251,397.25. The transaction was disclosed in a document filed with the SEC, which is accessible through this link. Company insiders own 1.90% of the company’s stock.
Several hedge funds and other institutional investors have recently bought and sold shares of WCC. Polaris Capital Management LLC increased its holdings in shares of WESCO International by 169.8% during the fourth quarter. Polaris Capital Management LLC now owns 1,793,516 shares of the technology company’s stock worth $34,095,000 after buying an additional 1,128,805 shares in the last quarter. TIAA CREF Investment Management LLC increased its holdings in shares of WESCO International by 134.5% during the fourth quarter. TIAA CREF Investment Management LLC now owns 505,648 shares of the technology company’s stock worth $34,460,000 after buying an additional 290,016 shares in the last quarter. Tocqueville Asset Management L.P. increased its holdings in shares of WESCO International by 47.3% during the fourth quarter. Tocqueville Asset Management L.P. now owns 460,615 shares of the technology company’s stock worth $31,391,000 after buying an additional 147,900 shares in the last quarter. Geode Capital Management LLC increased its holdings in shares of WESCO International by 11.8% during the fourth quarter. Geode Capital Management LLC now owns 401,452 shares of the technology company’s stock worth $27,358,000 after buying an additional 42,279 shares in the last quarter. Finally, James Investment Research Inc. increased its holdings in shares of WESCO International by 217.4% during the fourth quarter. James Investment Research Inc. now owns 39,800 shares of the technology company’s stock worth $2,712,000 after buying an additional 27,260 shares in the last quarter. 99.31% of the stock is owned by institutional investors.
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About WESCO International
WESCO International, Inc is a distributor of products and provider of supply chain management and logistics services used in industrial, construction, utility and commercial, institutional and government (CIG) markets. The Company is a provider of electrical, industrial and communications maintenance, repair and operating (MRO) and original equipment manufacturers (OEM) products, construction materials, and supply chain management and logistics services.
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