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In a challenging market environment, Atkore International Group Inc . (NYSE:ATKR) stock has reached a 52-week low, dipping to $62.62. According to InvestingPro analysis, despite trading at an attractive P/E ratio of 6x and maintaining strong liquidity with a current ratio of 3.03, the stock appears undervalued based on its Fair Value metrics. The significant downturn reflects a broader trend affecting the industry, with the company’s stock price experiencing a steep decline over the past year. Investors have witnessed a -61.57% change in the stock’s value compared to the previous year, marking a period of notable volatility and concern for stakeholders. The current price level serves as a critical juncture for Atkore International Group Inc., as market watchers and investors closely monitor the company’s performance and potential recovery strategies. InvestingPro data reveals the company remains profitable with strong fundamentals, maintaining positive net income of $376 million in the last twelve months. For deeper insights and additional ProTips about ATKR’s valuation and growth prospects, explore the comprehensive Pro Research Report available on InvestingPro.
In other recent news, Atkore Inc. has been served with a grand jury subpoena from the U.S. Department of Justice Antitrust Division, demanding documents related to the pricing of its PVC pipe and conduit products. The company intends to comply fully with the legal request. Atkore’s first-quarter fiscal year 2025 report revealed earnings per share of $1.63, slightly surpassing analyst estimates, but quarterly revenue fell short at $661.6 million, marking a 17.1% decline compared to the previous year. The company’s net income dropped significantly by 66.5% to $46.3 million, and adjusted EBITDA decreased by 53.6% to $99.2 million.
In response to these financial results, RBC Capital Markets reduced Atkore’s price target from $91 to $73, maintaining a Sector Perform rating. Similarly, KeyBanc Capital Markets lowered the price target to $80 while keeping an Overweight rating, expressing disappointment over a pricing reset but acknowledging a proactive management approach. Loop Capital Markets downgraded Atkore from "Buy" to "Hold," citing concerns over pricing power amid increased competition. The company’s revised profit forecast for fiscal year 2025, with an adjusted EPS range of $5.75 to $6.85, fell below the consensus estimate of $8.38, further impacting investor sentiment.
Despite the challenges, Atkore’s President and CEO, Bill Waltz, noted positive performance in certain product areas and emphasized the company’s strategic focus on growth initiatives. The board declared a quarterly cash dividend of $0.32 per share, payable on February 28, 2025. As Atkore navigates these developments, the company’s financial performance and market position remain under close observation by investors.
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