FTI Consulting (FCN) Cut to “Hold” at Zacks Investment Research
FTI Consulting (NYSE:FCN) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research report issued on Wednesday.
According to Zacks, “FTI Consulting has elected few highly qualified executive officers for improving its operational performance in the long term. Acquisitions on a global basis in high-growth segments and significant investments in technology are likely to fuel growth. FTI Consulting’s unique capabilities of bringing together damage assessment, accounting, economics, statistics, finance and industry under a single umbrella make it an excellent partner for global clients dealing with international arbitration issues. However, the company is highly exposed to foreign exchange rate risks and pricing pressure due to the Brexit referendum. Despite improving corporate earnings, clients’ spending patterns remained cautious, given the concerns over the current environment, volatile financial markets and a lack of visibility regarding the impact of future tax and regulatory policies. FTI Consulting has also underperformed the industry year to date.”
Separately, TheStreet raised shares of FTI Consulting from a “c” rating to a “b” rating in a research note on Thursday, October 26th. One research analyst has rated the stock with a sell rating and three have given a hold rating to the company’s stock. FTI Consulting presently has an average rating of “Hold” and a consensus target price of $44.33.
Shares of FTI Consulting (NYSE FCN) traded down $0.14 during midday trading on Wednesday, hitting $43.25. 143,700 shares of the stock were exchanged, compared to its average volume of 348,942. The company has a current ratio of 2.15, a quick ratio of 2.15 and a debt-to-equity ratio of 0.41. The stock has a market capitalization of $1,646.94, a PE ratio of 35.16 and a beta of 0.33. FTI Consulting has a 1 year low of $31.65 and a 1 year high of $45.67.
FTI Consulting (NYSE:FCN) last announced its quarterly earnings data on Thursday, October 26th. The business services provider reported $0.83 earnings per share (EPS) for the quarter, topping the Zacks’ consensus estimate of $0.59 by $0.24. The firm had revenue of $448.96 million during the quarter, compared to analysts’ expectations of $446.63 million. FTI Consulting had a net margin of 2.70% and a return on equity of 6.12%. The company’s revenue for the quarter was up 2.5% compared to the same quarter last year. During the same period in the prior year, the company posted $0.52 earnings per share. sell-side analysts expect that FTI Consulting will post 2.06 earnings per share for the current fiscal year.
FTI Consulting declared that its board has authorized a stock buyback plan on Monday, December 4th that authorizes the company to buyback $100.00 million in shares. This buyback authorization authorizes the business services provider to purchase shares of its stock through open market purchases. Shares buyback plans are typically a sign that the company’s board believes its stock is undervalued.
A number of institutional investors and hedge funds have recently bought and sold shares of the stock. Black Creek Investment Management Inc. grew its stake in FTI Consulting by 19.6% during the second quarter. Black Creek Investment Management Inc. now owns 4,512,287 shares of the business services provider’s stock valued at $157,750,000 after acquiring an additional 739,072 shares in the last quarter. State Street Corp grew its stake in FTI Consulting by 3.5% during the second quarter. State Street Corp now owns 1,349,945 shares of the business services provider’s stock valued at $47,192,000 after acquiring an additional 45,366 shares in the last quarter. Northern Trust Corp grew its stake in FTI Consulting by 34.0% during the second quarter. Northern Trust Corp now owns 1,230,348 shares of the business services provider’s stock valued at $43,013,000 after acquiring an additional 311,939 shares in the last quarter. JPMorgan Chase & Co. grew its stake in FTI Consulting by 2.0% during the second quarter. JPMorgan Chase & Co. now owns 800,922 shares of the business services provider’s stock valued at $28,000,000 after acquiring an additional 15,665 shares in the last quarter. Finally, Thompson Siegel & Walmsley LLC grew its stake in FTI Consulting by 8.1% during the third quarter. Thompson Siegel & Walmsley LLC now owns 578,890 shares of the business services provider’s stock valued at $20,539,000 after acquiring an additional 43,256 shares in the last quarter. 97.19% of the stock is owned by institutional investors.
FTI Consulting Company Profile
FTI Consulting, Inc is a business advisory company. The Company operates through five segments: Corporate Finance & Restructuring, Forensic and Litigation Consulting, Economic Consulting, Technology and Strategic Communications. The Company provides advice and services, such as restructuring (including bankruptcy), capital formation and indebtedness, interim business management, performance improvements, forensic accounting and litigation matters, international arbitrations, mergers and acquisitions (M&A), antitrust and competition matters, securities litigation, electronic discovery (or e-discovery), management and retrieval of electronically stored information (ESI), reputation management and strategic communications.
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