XPEL (NASDAQ:XPEL) Shares Down 6.5% – Should You Sell?

Shares of XPEL, Inc. (NASDAQ:XPEL) were down 6.5% during trading on Tuesday. The company traded as low as $42.10 and last traded at $41.95. 186,527 shares changed hands during mid-day trading, a decline of 21% from the average daily volume of 236,041 shares. The stock had previously closed at $44.85.

Key Headlines Impacting XPEL

Here are the key news stories impacting XPEL this week:

• Positive Sentiment: Third-quarter earnings were $0.62 per share, above the reported consensus of $0.60 and up from $0.47 a year earlier. Revenue grew 9.9% year over year to $137.8 million, and gross margin widened to 44.6% from 41.8%. XPEL third-quarter results
• Positive Sentiment: Management maintained its goal of reaching operating margins in the mid-20% range by the end of 2028, signaling continued focus on longer-term profitability. XPEL Q4 outlook and margin goal
• Negative Sentiment: Quarterly revenue fell short of analysts’ estimate of $138.75 million despite year-over-year growth, tempering the earnings beat. XPEL earnings results
• Negative Sentiment: XPEL forecast fourth-quarter revenue of $125 million to $127 million, below its third-quarter total, and regulatory uncertainty was cited as a concern for the outlook. These factors could leave investors cautious about near-term growth. Revenue growth and regulatory outlook

Analyst Upgrades and Downgrades

A number of research analysts have issued reports on XPEL shares. Weiss Ratings upgraded shares of XPEL from a “hold (c)” rating to a “hold (c+)” rating in a research report on Thursday, October 8th. Freedom Capital raised shares of XPEL from a “hold” rating to a “strong-buy” rating in a research note on Friday, August 7th. Finally, B. Riley Financial lifted their price target on shares of XPEL from $55.00 to $65.00 and gave the stock a “buy” rating in a research report on Thursday, August 6th. One research analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating and two have given a Hold rating to the company’s stock. According to data from MarketBeat, XPEL presently has an average rating of “Moderate Buy” and an average target price of $65.00.

XPEL Stock Performance

The stock has a 50 day moving average price of $45.44 and a two-hundred day moving average price of $46.03. The company has a current ratio of 2.56, a quick ratio of 1.14 and a debt-to-equity ratio of 0.17. The company has a market cap of $1.10 billion, a price-to-earnings ratio of 19.59 and a beta of 1.20.

XPEL (NASDAQ:XPEL) last posted its quarterly earnings results on Wednesday, November 4th. The company reported $0.62 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.60 by $0.02. The business had revenue of $137.81 million for the quarter, compared to analyst estimates of $138.75 million. XPEL had a return on equity of 19.39% and a net margin of 11.17%. The firm’s revenue was up 9.9% on a year-over-year basis. During the same period last year, the company earned $0.47 EPS. Analysts predict that XPEL, Inc. will post 2.12 EPS for the current year.

Institutional Trading of XPEL

A number of institutional investors and hedge funds have recently modified their holdings of the stock. Maryland State Retirement & Pension System bought a new position in XPEL during the 3rd quarter worth approximately $247,000. Alps Advisors Inc. acquired a new position in XPEL during the third quarter valued at approximately $548,000. Markel Group Inc. bought a new stake in XPEL in the third quarter valued at approximately $922,000. Mirae Asset Global Investments Co. Ltd. bought a new stake in XPEL in the third quarter valued at approximately $73,000. Finally, Pinnacle Wealth Planning Services Inc. increased its stake in XPEL by 11.5% in the third quarter. Pinnacle Wealth Planning Services Inc. now owns 2,537 shares of the company’s stock valued at $112,000 after purchasing an additional 262 shares in the last quarter. 75.08% of the stock is owned by institutional investors.

About XPEL

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