Continental Building Products, Inc. (CBPX) saw a big move last session, as the company’s shares fell nearly 9% on the day. The move came on pretty good volume too with far more shares changing hands than in a normal session. This reverses the recent trend for CBPX as the stock is now up over 5% in the past one-month time frame.
On Mar 13, Continental Building announced that its largest stockholder – an affiliate of Lone Star Funds – has decided to sell its 5 million shares in an underwritten secondary offering. The offering is expected to close by Mar 18, 2015.
The company in building and construction space has seen a mixed track record when it comes to current year estimate revisions over the past few weeks (1 increase, 2 decreases), and the consensus for earnings hasn’t been in a trend either. This recent price action is discouraging, so make sure to keep a close watch on this firm in the near future, and especially on earnings estimates following the recent slump.
CBPX currently has a Zacks Rank #3 (Hold) while its Earnings ESP is 0.00%.
Investors interested in the building products space may consider better-ranked stock like Quanex Building Products Corporation (NX), which carries a Zacks Rank #1 (Strong Buy).
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