FTI Consulting (FCN) Cut to Hold at Zacks Investment Research

Zacks Investment Research cut shares of FTI Consulting (NYSE:FCN) from a strong-buy rating to a hold rating in a research note released on Tuesday.

According to Zacks, “FTI Consulting’s unique capabilities of bringing together damage assessment, accounting, economics, statistics, finance and industry under a single platform make 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 to in the past year. However, FTI Consulting’s international operations exposes it to risks associated with foreign exchange rate fluctuations. Further, it is likely to be affected by renegotiated deals and restrictions imposed on trade with other European Union members post Brexit referendum.”

Separately, ValuEngine upgraded FTI Consulting from a buy rating to a strong-buy rating in a report on Friday, April 27th.

NYSE FCN opened at $61.14 on Tuesday. The company has a market capitalization of $2.29 billion, a price-to-earnings ratio of 19.84 and a beta of 0.17. FTI Consulting has a fifty-two week low of $31.65 and a fifty-two week high of $65.14. The company has a debt-to-equity ratio of 0.36, a current ratio of 2.38 and a quick ratio of 2.38.

FTI Consulting (NYSE:FCN) last released its quarterly earnings results on Thursday, April 26th. The business services provider reported $1.04 earnings per share for the quarter, topping the Zacks’ consensus estimate of $0.62 by $0.42. The firm had revenue of $497.77 million during the quarter, compared to analysts’ expectations of $456.68 million. FTI Consulting had a return on equity of 9.85% and a net margin of 7.15%. FTI Consulting’s quarterly revenue was up 11.5% compared to the same quarter last year. During the same quarter in the prior year, the business earned $0.34 EPS. sell-side analysts forecast that FTI Consulting will post 2.65 earnings per share for the current fiscal year.

In other FTI Consulting news, Director Brenda J. Bacon sold 15,966 shares of the company’s stock in a transaction that occurred on Monday, June 4th. The stock was sold at an average price of $62.94, for a total value of $1,004,900.04. Following the transaction, the director now directly owns 38,189 shares of the company’s stock, valued at approximately $2,403,615.66. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Corporate insiders own 2.19% of the company’s stock.

Several institutional investors and hedge funds have recently made changes to their positions in FCN. Hsbc Holdings PLC raised its position in shares of FTI Consulting by 2,442.4% in the 1st quarter. Hsbc Holdings PLC now owns 144,357 shares of the business services provider’s stock valued at $6,989,000 after purchasing an additional 138,679 shares in the last quarter. WINTON GROUP Ltd acquired a new position in shares of FTI Consulting in the 1st quarter valued at approximately $5,971,000. Millennium Management LLC raised its position in shares of FTI Consulting by 272.2% in the 1st quarter. Millennium Management LLC now owns 153,579 shares of the business services provider’s stock valued at $7,435,000 after purchasing an additional 112,316 shares in the last quarter. Franklin Resources Inc. raised its position in shares of FTI Consulting by 121.0% in the 1st quarter. Franklin Resources Inc. now owns 170,400 shares of the business services provider’s stock valued at $8,249,000 after purchasing an additional 93,300 shares in the last quarter. Finally, Allianz Asset Management GmbH raised its position in shares of FTI Consulting by 109.0% in the 4th quarter. Allianz Asset Management GmbH now owns 176,680 shares of the business services provider’s stock valued at $7,591,000 after purchasing an additional 92,151 shares in the last quarter. 95.34% of the stock is currently owned by institutional investors.

About FTI Consulting

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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