What Happened?
Shares of building products company Quanex (NYSE: NX) fell 4.7% in the afternoon session after a Benchmark analyst lowered the company's price target from $30.00 to $28.00. Analyst Reuben Garner announced the revision, which represented a 6.67% decrease in the target price, although the firm kept its 'Buy' rating on the stock.
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What Is The Market Telling Us
Quanex’s shares are extremely volatile and have had 30 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 3 days ago when the stock gained 8.4% on the news that it reported strong third-quarter results that significantly beat analyst expectations for both earnings and revenue.
The company posted an adjusted profit of $0.83 per share, easily surpassing the consensus estimate of $0.52. Revenue for the quarter came in at $489.8 million, which was flat year on year but topped forecasts of $469.3 million. In addition to the strong results, management provided a positive update on its recent Tyman acquisition, noting that its integration was "substantially complete." The company now expects to realize approximately $45 million in cost synergies over time, which is higher than its initial projection of $30 million.
Quanex is down 32.7% since the beginning of the year, and at $15.83 per share, it is trading 43% below its 52-week high of $27.77 from December 2024. Investors who bought $1,000 worth of Quanex’s shares 5 years ago would now be looking at an investment worth $703.87.
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