Franklin Resources Inc. Increases Stake in FirstService Co.

Franklin Resources Inc. has significantly increased its investment in FirstService Co. (NASDAQ:FSV), raising its stake by an impressive 486.3% during the third quarter of the year. According to Franklin's most recent Form 13F filing with the SEC, the firm now holds a total of 469,141 shares in the financial services provider. This acquisition was boosted by an additional purchase of 389,129 shares within the same period, resulting in a total investment valued at approximately $87,308,000, which accounts for 1.04% of FirstService.

In addition to Franklin Resources, several other institutional investors have also shown interest in FirstService shares. For instance, Bank of Montreal Can increased its holdings by 19.7% in the third quarter, amassing 388,430 shares worth about $69,992,000 after purchasing an extra 63,807 shares. Similarly, Amica Mutual Insurance Co. scaled up its investment by 99.9% in the previous quarter, acquiring 9,908 shares valued at $1,510,000 after an increase of 4,952 shares. Envestnet Asset Management Inc. also expanded its stake by 8.2%, holding 193,129 shares worth $29,427,000 after an additional purchase of 14,579 shares. Furthermore, William Blair Investment Management LLC raised its position by 0.8%, owning 861,871 shares valued at $131,323,000, and Cubist Systematic Strategies LLC increased its stake by 33.4%, reaching 17,253 shares valued at $2,628,000. Overall, 69.35% of FirstService stock is owned by institutional investors and hedge funds.

FirstService Stock Performance

On Monday, FirstService stock opened at $188.05. The company's fifty-day moving average price stands at $188.43, while its two-hundred-day moving average is $174.60. The stock has experienced a one-year low of $141.26 and a high of $197.84. FirstService boasts a market capitalization of $8.51 billion, a debt-to-equity ratio of 1.13, and a PE ratio of 78.35, with a beta of 1.04.

FirstService recently reported its quarterly earnings on October 24. The company achieved an earnings per share (EPS) of $1.63, exceeding the analysts' estimate of $1.42 by $0.21. It recorded a return on equity of 16.68% and a net profit margin of 2.19%. The total revenue for the quarter reached $1.40 billion, surpassing the projected $1.32 billion. This marked a 25.0% increase in revenue year-over-year compared to the same quarter in the prior year.

Upcoming Dividend Payment

FirstService has also announced a quarterly dividend, set to be paid on January 7. Shareholders on record by December 31 will receive a dividend of $0.25. This constitutes an annualized dividend of $1.00, yielding 0.53%. Notably, FirstService's payout ratio is 41.67%.

Analysts' Price Target Adjustments

Various research firms have adjusted their price targets for FirstService. TD Securities raised its target from $179.00 to $182.00, maintaining a "hold" rating. Scotiabank increased its price target from $190.00 to $200.00, assigning a "sector perform" rating. StockNews.com upgraded FirstService from a "hold" rating to a "buy" rating. Stifel Nicolaus lifted its target from $200.00 to $215.00, maintaining a "buy" rating. Presently, two research analysts recommend holding the stock, while five endorse a buy rating, resulting in an average rating of "Moderate Buy" with a consensus target price of $198.33.

About FirstService

FirstService Corporation, through its subsidiaries, provides essential property management services to residential and commercial clients across the United States and Canada. The company operates in two segments: FirstService Residential and FirstService Brands. Its Residential segment caters to private communities, including condominiums, cooperatives, homeowner associations, and various other residential developments.

investment, financial, stock