Zacks Investment Research Downgrades USG (USG) to Sell

USG (NYSE:USG) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research note issued on Tuesday.

According to Zacks, “USG Corp., through its subsidiaries, is a leading manufacturer and distributor of building materials producing a wide range of products for use in new residential, new nonresidential and repair and remodel construction, as well as products used in certain industrial processes. USG’s operations are organized into three operating segments: North American Gypsum, Worldwide Ceilings and Building Products Distribution. “

Separately, Citigroup lifted their price target on USG from $43.00 to $44.00 and gave the stock a “$43.10” rating in a report on Monday, July 23rd. One investment analyst has rated the stock with a sell rating, ten have assigned a hold rating and two have issued a buy rating to the company. The stock currently has an average rating of “Hold” and an average target price of $41.69.

Shares of NYSE USG traded up $0.01 during trading on Tuesday, hitting $42.04. 926,940 shares of the company were exchanged, compared to its average volume of 1,416,470. USG has a 12-month low of $32.09 and a 12-month high of $43.47. The company has a quick ratio of 1.52, a current ratio of 2.10 and a debt-to-equity ratio of 0.58. The firm has a market cap of $5.90 billion, a PE ratio of 23.36, a P/E/G ratio of 0.95 and a beta of 0.85.

USG (NYSE:USG) last posted its quarterly earnings results on Thursday, October 25th. The construction company reported $0.45 EPS for the quarter, missing the consensus estimate of $0.57 by ($0.12). USG had a return on equity of 13.93% and a net margin of 2.75%. The company had revenue of $851.00 million for the quarter, compared to analysts’ expectations of $850.00 million. Research analysts expect that USG will post 2.03 EPS for the current year.

In related news, insider Brian J. Cook sold 15,000 shares of the business’s stock in a transaction dated Wednesday, August 1st. The shares were sold at an average price of $43.15, for a total value of $647,250.00. Following the sale, the insider now directly owns 63,925 shares in the company, valued at approximately $2,758,363.75. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, SVP Joseph W. Holmes sold 7,831 shares of the business’s stock in a transaction dated Thursday, August 2nd. The shares were sold at an average price of $43.17, for a total transaction of $338,064.27. Following the completion of the sale, the senior vice president now owns 25,768 shares in the company, valued at $1,112,404.56. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 37,831 shares of company stock worth $1,628,064. 0.66% of the stock is owned by insiders.

A number of institutional investors and hedge funds have recently modified their holdings of the stock. Raymond James & Associates raised its holdings in USG by 8.4% in the 2nd quarter. Raymond James & Associates now owns 16,614 shares of the construction company’s stock valued at $716,000 after buying an additional 1,291 shares during the period. US Bancorp DE increased its stake in USG by 54.8% during the second quarter. US Bancorp DE now owns 4,055 shares of the construction company’s stock worth $174,000 after purchasing an additional 1,435 shares during the period. Janney Montgomery Scott LLC increased its stake in USG by 19.1% during the second quarter. Janney Montgomery Scott LLC now owns 11,028 shares of the construction company’s stock worth $476,000 after purchasing an additional 1,765 shares during the period. State of Alaska Department of Revenue increased its stake in USG by 39.9% during the second quarter. State of Alaska Department of Revenue now owns 9,360 shares of the construction company’s stock worth $403,000 after purchasing an additional 2,670 shares during the period. Finally, Synovus Financial Corp purchased a new stake in USG during the second quarter worth about $129,000. Hedge funds and other institutional investors own 79.93% of the company’s stock.

USG Company Profile

USG Corporation, through its subsidiaries, manufactures and sells building materials worldwide. The company's Gypsum division manufactures and markets gypsum and related products to construct walls, ceilings, roofs, and floors of residential, commercial, and institutional buildings, as well as for various industrial applications.

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