FirstService (NASDAQ:FSV) Stock Price Falls 4.9% - Should Investors Consider Selling?

Shares of FirstService Co. (NASDAQ:FSV) experienced a decline of 4.9% during trading on Wednesday. The stock reached a low of $173.95 and was last recorded at $172.80. During the session, around 54,261 shares changed hands, marking a significant drop of 54% compared to the average daily trading volume of 117,762 shares. Previously, the stock had closed at $181.65.

Analyst Projections Indicate Growth Ahead

Recent comments from several equities research analysts suggest an expectation of growth for FirstService. Stifel Nicolaus adjusted their price target for the stock from $200.00 to $215.00, maintaining a "buy" rating in a note released on October 21st. StockNews.com also upgraded FirstService from a "hold" to a "buy" rating on October 25th. Additionally, Scotiabank increased their price target from $190.00 to $200.00 with a "sector perform" rating noted on October 15th. In a report dated January 30th, Raymond James raised their target price to $225.00, giving the stock an "outperform" rating. On October 17th, TD Securities updated their price target from $179.00 to $182.00 while issuing a "hold" rating. Currently, two analysts recommend holding the stock, and five recommend buying it, resulting in an average rating of "Moderate Buy" with a consensus price target of $201.67, according to MarketBeat.com.

Performance Overview of FirstService Stock

FirstService has a 50-day moving average price of $184.60 and a 200-day moving average price of $181.91. The company's market capitalization stands at $7.85 billion, and it has a P/E ratio of 72.25. The stock exhibits a beta of 1.06, indicating a moderate level of volatility. Financial health metrics reveal a quick ratio of 1.79, a current ratio of 1.79, and a debt-to-equity ratio of 1.13, suggesting a sound financial situation.

Dividend Increase Announced by FirstService

Recently, FirstService declared a quarterly dividend, which is set to be disbursed on May 7th. Shareholders recorded by March 31st will receive a dividend of $0.275 per share, which marks an increase from the prior quarterly dividend of $0.25. This reflects an annualized dividend of $1.10 and a yield of 0.63%. The dividend payout ratio stands at 41.67%, indicating a disciplined approach to returning capital to shareholders.

Institutional Investment Activity in FirstService

Several hedge funds have adjusted their positions in FirstService recently. Conestoga Capital Advisors LLC increased its stake in the company by 1.6% in the third quarter and now holds 1,449,933 shares valued at roughly $264.6 million after acquiring an additional 23,082 shares. Franklin Resources Inc. saw a significant increase of 486.3% in its ownership during the same quarter, bringing its total to 469,141 shares worth about $87.3 million after purchasing 389,129 additional shares. CIBC Asset Management Inc. expanded its holdings by 57.4% in the fourth quarter to own 457,735 shares valued at $83.1 million following the acquisition of 166,996 shares. Other firms like Bank of Montreal Can and Fiera Capital Corp also increased their stakes, indicating strong institutional interest as 69.35% of the company’s shares are owned by hedge funds and institutional investors.

About FirstService Corporation

FirstService Corporation is a prominent provider of residential property management and essential property services in the United States and Canada. The company operates through two segments: FirstService Residential, which serves private residential communities, and FirstService Brands, covering various essential services.

Conclusion: Should Investors Reassess Their Positions?

Given the recent decline in FirstService's stock price, analysts' positive outlook, and growing dividend, investors may need to evaluate their current positions and decisions regarding whether to hold or sell. As always, individual financial goals and market conditions should guide investment choices.

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