FTI Consulting (FCN) Rating Lowered to Hold at Zacks Investment Research

FTI Consulting (NYSE:FCN) was downgraded by Zacks Investment Research from a “strong-buy” rating to a “hold” rating in a note issued to investors on Wednesday.

According to Zacks, “FTI Consulting’s unique potential to bring together diverse issues like damage assessment, accounting, economics, statistics, finance and industry under a single platform makes it an excellent partner for global clients, thereby generating continued revenue growth from the existing international operations. The company’s shareholder-friendly moves of returning value to shareholders in the form of share repurchases look impressive. In fact, the company outperformed the industry it belongs, on a year-to-date basis. Lower tax rates boost the bottom line. However, FTI Consulting’s international operations exposes it to risks associated with foreign exchange rate fluctuations. A debt-laden balance sheet acts as a major concern.”

Several other research analysts also recently weighed in on FCN. ValuEngine downgraded FTI Consulting from a “strong-buy” rating to a “buy” rating in a research note on Saturday, June 2nd. Sidoti upgraded FTI Consulting from a “neutral” rating to a “buy” rating in a research note on Tuesday, July 10th.

Shares of FCN stock traded up $1.23 during mid-day trading on Wednesday, reaching $73.87. 2,180 shares of the company’s stock traded hands, compared to its average volume of 258,129. FTI Consulting has a 12 month low of $35.41 and a 12 month high of $81.91. The stock has a market cap of $2.77 billion, a PE ratio of 31.87 and a beta of 0.04. The company has a current ratio of 2.29, a quick ratio of 2.29 and a debt-to-equity ratio of 0.29.

FTI Consulting (NYSE:FCN) last posted its quarterly earnings results on Thursday, July 26th. The business services provider reported $1.14 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.63 by $0.51. The firm had revenue of $512.10 million during the quarter, compared to analyst estimates of $464.02 million. FTI Consulting had a return on equity of 11.84% and a net margin of 9.43%. FTI Consulting’s quarterly revenue was up 15.2% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $0.40 EPS. sell-side analysts forecast that FTI Consulting will post 3.27 earnings per share for the current fiscal year.

In related news, insider Holly Paul sold 10,426 shares of FTI Consulting stock in a transaction that occurred on Friday, July 27th. The stock was sold at an average price of $75.29, for a total transaction of $784,973.54. Following the completion of the transaction, the insider now directly owns 20,102 shares in the company, valued at $1,513,479.58. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. 2.19% of the stock is currently owned by company insiders.

A number of hedge funds have recently made changes to their positions in FCN. BlackRock Inc. raised its stake in FTI Consulting by 7.9% in the 2nd quarter. BlackRock Inc. now owns 5,283,500 shares of the business services provider’s stock worth $319,546,000 after purchasing an additional 385,929 shares in the last quarter. FMR LLC raised its position in shares of FTI Consulting by 419.0% in the 2nd quarter. FMR LLC now owns 2,982,035 shares of the business services provider’s stock valued at $180,353,000 after buying an additional 2,407,460 shares in the last quarter. Northern Trust Corp raised its position in shares of FTI Consulting by 2.6% in the 2nd quarter. Northern Trust Corp now owns 1,193,314 shares of the business services provider’s stock valued at $72,172,000 after buying an additional 30,282 shares in the last quarter. Boston Partners raised its position in shares of FTI Consulting by 2.8% in the 2nd quarter. Boston Partners now owns 666,894 shares of the business services provider’s stock valued at $40,334,000 after buying an additional 18,253 shares in the last quarter. Finally, Acadian Asset Management LLC acquired a new position in shares of FTI Consulting in the 2nd quarter valued at approximately $33,146,000. Institutional investors own 93.22% of the company’s stock.

FTI Consulting Company Profile

FTI Consulting, Inc provides business advisory services to manage change, mitigate risk, and resolve disputes worldwide. The company's Corporate Finance & Restructuring segment provides turnaround and restructuring, business transformation, interim management, valuation and financial advisory, transaction, dispute advisory, and tax services, as well as mergers and acquisitions (M&A), and M&A integration services.

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