Is Universal Forest (NASDAQ:UFPI) Now a Sell? Why did DA Davidson Downgrade The Stock?


Universal Forest (NASDAQ:UFPI) Receives a Downgrade

DA Davidson cut shares of Universal Forest (NASDAQ:UFPI) stock from a “Neutral” rating to a “Underperform” rating in a note made public on Tuesday, 8 December.

The stock decreased 8.08% or $6.22 during the last trading session, striking $70.78. Approximately shares of stock traded hands. Universal Forest Products, Inc. (NASDAQ:UFPI) has risen 29.42% since May 6, 2015 and is uptrending. It has outperformed by 30.22% the S&P500.

The overall sentiment of institutions has decreased to 1.31 in Q2 2015. Its down 0.11, from 1.42 in 2015Q2. The ratio dropped, as 20 institutions have sold all the shares of Universal Forest Products, Inc. that they owned while 51 funds have taken shares off the table. 32 funds have purchased shares for the first time while 61 added to their positions. These institutions now hold 14.55 million shares or 9.83% less than the 16.13 million shares they owned in 2015Q2.

The Fund Zpr Investment Management currently is holding shares equating to 5.69% of its total portfolio in Universal Forest Products, Inc. representing a total of 80,720 shares. Another fund,Covalent Partners Llc, is holding a total of 202,331 shares equating to 2.46% of their holdings. Additionally, Sg Capital Management Llc has a 106,616 share stake in Universal Forest Products, Inc. which represents 1.36% of their total portfolio. The Fund, Capital Innovations Llc, based out of Wisconsin, has also built up a stake in the stock, which represents a total of 1.28% of their total portfolio. Finally Heartland Advisors Inc, a fund which is based in the state of Wisconsin reported a total holdings of 425,728 shares.

Insider activity is a very important aspect to track on any stock. Going back to April 24, 2015, shareholders of Universal Forest Products, Inc. have witnessed 0 insider buys, and a total of 7 selling transactions equating to a net activity of approximately $1.32 million . Smith Louis A sold 2,078 shares worth approximately $155,203. Coleman Robert D sold 2,500 shares worth approximately $177,500. Currie William G sold 200 shares worth approximately $12,982. Greene Charles Scott sold 1,500 shares worth approximately $93,206. The company insider Engler John M sold 2,520 shares worth $140,950.

Universal Forest Products, Inc. is a holding company. The company has a market cap of $1.55 billion. The Firm capital, management and administrative resources to subsidiaries that supply wood, wood composite and other products to three primary markets: retail, housing and construction, and industrial. It has 20.15 P/E ratio. The Company’s retail market comprises building materials sold primarily to national home center retailers, retail-oriented regional lumber yards and contractor-oriented lumber yards.

According to Zacks Investment Research, “UNIVERSAL FOREST PRODUCTS INC manufactures, treats and distributes lumber products for the do-it-yourself, manufactured housing, wholesale lumber and industrial markets. Its principal products are pressure-treated wood, engineered roof trusses, dimension lumber and value-added lumber products, including lattice, fence panels, deck components and kits for various outdoor products sold under the its PRO-WOOD, Deck Necessities, Lattice Basics, Fence Fundamentals and Outdoor Essentials trademarks.” Get a free copy of the Zacks research report on Universal Forest Products, Inc. (UFPI).