Raymond James Lowers Q3 EPS Estimates for Element Fleet Management

On November 12, 2023, Raymond James Financial revised its earnings per share (EPS) estimates for Element Fleet Management Corp. (TSE:EFN), lowering the prediction for the third quarter of 2026 from $0.55 to $0.53. This adjustment reflects a more cautious outlook for the financial services provider, which currently has a consensus estimate for full-year earnings of $1.69 per share.

Analyst Reactions and Price Target Adjustments

Other research firms have also weighed in on Element Fleet Management’s stock performance. BMO Capital Markets increased its price target on EFN shares from C$35.00 to C$40.00 while assigning an “outperform” rating in a report on August 8, 2023. Likewise, National Bankshares raised its target price from C$47.00 to C$48.00 in a report dated October 27, 2023, maintaining an “outperform” rating.

Additionally, TD Securities adjusted its price target from C$41.00 to C$42.00, also giving the company a “buy” rating on August 7, 2023. Scotiabank boosted its price objective on Element Fleet Management from C$40.00 to C$42.00 on October 24, 2023, while the Royal Bank of Canada increased its target from C$43.00 to C$47.00 on the same day.

Currently, one equity research analyst has classified the stock with a “Strong Buy” rating, six analysts have rated it as a “Buy,” and one has given it a “Hold” rating. According to MarketBeat, the stock has an average rating of “Buy” with a consensus price target of C$42.00.

Stock Performance and Insider Activity

As of November 12, 2023, Element Fleet Management shares opened at C$35.05. The company boasts a market capitalization of C$14.02 billion and a price-to-earnings (P/E) ratio of 32.76. The stock has fluctuated between a 52-week low of C$25.00 and a high of C$38.26. Its quick ratio stands at 5.70, while the current ratio is 7.04, indicating a strong liquidity position.

In a notable transaction, Heath Leslie Valkenburg, an insider at Element Fleet Management, purchased 813 shares on September 10, 2023, at an average price of C$36.90 per share. This acquisition totaled approximately C$29,999.70, increasing Valkenburg’s ownership to 4,153 shares, valued at around C$153,245.70. Currently, insiders hold only 0.26% of the company’s stock.

Element Fleet Management, which became an independent public company in October 2016 after separating from Element Financial, specializes in providing management and financing services for commercial vehicle and equipment fleets. With its strategic focus on fleet management, the company continues to adapt to changing market conditions while pursuing growth opportunities.