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 research report issued to clients and 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.”
A number of other research firms have also weighed in on FCN. Sidoti raised shares of FTI Consulting from a “neutral” rating to a “buy” rating in a report on Tuesday, July 10th. ValuEngine lowered shares of FTI Consulting from a “strong-buy” rating to a “buy” rating in a report on Saturday, June 2nd.
FTI Consulting (NYSE:FCN) last announced its quarterly earnings results on Thursday, July 26th. The business services provider reported $1.14 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.63 by $0.51. FTI Consulting had a net margin of 9.43% and a return on equity of 11.84%. The company had revenue of $512.10 million for the quarter, compared to analyst estimates of $464.02 million. During the same period in the previous year, the firm posted $0.40 EPS. The firm’s revenue was up 15.2% on a year-over-year basis. research analysts anticipate that FTI Consulting will post 3.27 earnings per share for the current year.
In related news, insider Holly Paul sold 10,426 shares of the business’s stock in a transaction on Friday, July 27th. The shares were sold at an average price of $75.29, for a total transaction of $784,973.54. Following the transaction, the insider now owns 20,102 shares in the company, valued at approximately $1,513,479.58. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. 2.19% of the stock is owned by insiders.
Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Financial Enhancement Group LLC acquired a new position in FTI Consulting during the second quarter worth $104,000. C M Bidwell & Associates Ltd. acquired a new position in FTI Consulting during the first quarter worth $107,000. Tower Research Capital LLC TRC acquired a new position in FTI Consulting during the second quarter worth $140,000. Cornerstone Wealth Management LLC acquired a new position in FTI Consulting during the second quarter worth $182,000. Finally, Itau Unibanco Holding S.A. acquired a new position in FTI Consulting during the second quarter worth $183,000. Hedge funds and other 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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