FirstService (NASDAQ:FSV) Shares Down 10.3% – Should You Sell?

FirstService Corporation (NASDAQ:FSV) (TSE:FSV)’s stock price dropped 10.3% on Thursday . The company traded as low as $126.49 and last traded at $127.0270. 44,649 shares changed hands during mid-day trading, a decline of 79% from the average daily volume of 211,308 shares. The stock had previously closed at $141.63.

Analysts Set New Price Targets

Several research analysts recently issued reports on FSV shares. Loop Capital began coverage on shares of FirstService in a research report on Monday, May 4th. They set a “hold” rating and a $140.00 price target on the stock. TD Securities set a $204.00 price objective on shares of FirstService in a research report on Friday, April 24th. Weiss Ratings downgraded shares of FirstService from a “hold (c)” rating to a “hold (c-)” rating in a research note on Friday, May 29th. Stifel Nicolaus reduced their target price on shares of FirstService from $215.00 to $200.00 and set a “buy” rating on the stock in a research report on Monday, April 27th. Finally, Wall Street Zen upgraded shares of FirstService from a “hold” rating to a “buy” rating in a research report on Saturday, May 9th. Eight analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. Based on data from MarketBeat, FirstService presently has an average rating of “Moderate Buy” and a consensus price target of $195.89.

FirstService Trading Down 8.5%

The company has a market cap of $5.96 billion, a P/E ratio of 36.68, a P/E/G ratio of 4.33 and a beta of 0.94. The company has a quick ratio of 1.66, a current ratio of 1.66 and a debt-to-equity ratio of 0.74. The business has a 50-day moving average price of $139.29 and a two-hundred day moving average price of $145.59.

FirstService (NASDAQ:FSV) (TSE:FSV) last posted its quarterly earnings results on Thursday, April 23rd. The financial services provider reported $0.95 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.89 by $0.06. The business had revenue of $1.30 billion for the quarter, compared to analysts’ expectations of $1.29 billion. FirstService had a return on equity of 17.91% and a net margin of 2.92%.The firm’s quarterly revenue was up 5.3% compared to the same quarter last year. During the same quarter last year, the business earned $0.92 earnings per share. On average, analysts predict that FirstService Corporation will post 5.57 EPS for the current year.

FirstService Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, July 7th. Shareholders of record on Tuesday, June 30th were issued a dividend of $0.305 per share. This represents a $1.22 annualized dividend and a yield of 0.9%. The ex-dividend date of this dividend was Tuesday, June 30th. FirstService’s payout ratio is currently 34.46%.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the business. The Manufacturers Life Insurance Company raised its stake in shares of FirstService by 493.4% during the fourth quarter. The Manufacturers Life Insurance Company now owns 2,775,353 shares of the financial services provider’s stock worth $432,173,000 after buying an additional 2,307,684 shares during the last quarter. Durable Capital Partners LP grew its holdings in FirstService by 12.9% during the 3rd quarter. Durable Capital Partners LP now owns 2,216,720 shares of the financial services provider’s stock worth $422,263,000 after acquiring an additional 253,155 shares during the period. Orbis Allan Gray Ltd grew its holdings in FirstService by 36.5% during the 4th quarter. Orbis Allan Gray Ltd now owns 1,984,677 shares of the financial services provider’s stock worth $308,677,000 after acquiring an additional 530,489 shares during the period. Vanguard Group Inc. grew its holdings in FirstService by 1.5% during the 4th quarter. Vanguard Group Inc. now owns 1,954,819 shares of the financial services provider’s stock worth $304,000,000 after acquiring an additional 29,805 shares during the period. Finally, Mackenzie Financial Corp raised its position in shares of FirstService by 15.5% during the 4th quarter. Mackenzie Financial Corp now owns 1,791,116 shares of the financial services provider’s stock valued at $278,247,000 after acquiring an additional 239,941 shares during the last quarter. Institutional investors own 69.35% of the company’s stock.

About FirstService

FirstService Corporation, founded in 1989 and headquartered in Toronto, Ontario, is a leading provider of property services in North America. The company operates through two principal segments—FirstService Residential and FirstService Brands—offering a broad range of services to residential, commercial and homeowner association clients.

FirstService Residential delivers community management, financial oversight and consulting services to thousands of residential communities across the United States and Canada.