FTI Consulting (FCN) Downgraded by Zacks Investment Research to “Hold”

Zacks Investment Research cut shares of FTI Consulting (NYSE:FCN) from a buy rating to a hold rating in a report published on Wednesday morning.

According to Zacks, “FTI Consulting has elected few highly qualified executive officers for improving its operational performance in the long term. Acquisitions on a global basis in high-growth segments and significant investments in technology are likely to fuel growth. FTI Consulting’s unique capabilities of bringing together damage assessment, accounting, economics, statistics, finance and industry under a single umbrella make it an excellent partner for global clients dealing with international arbitration issues. However, the company is highly exposed to foreign exchange rate risks and pricing pressure due to the Brexit referendum. Despite improving corporate earnings, clients’ spending patterns remained cautious, given the concerns over the current environment, volatile financial markets and a lack of visibility regarding the impact of future tax and regulatory policies. FTI Consulting has also underperformed the industry year to date.”

Separately, TheStreet raised shares of FTI Consulting from a c rating to a b rating in a research report on Thursday, October 26th. One research analyst has rated the stock with a sell rating and three have issued a hold rating to the company. The company presently has an average rating of Hold and a consensus target price of $44.33.

Shares of FTI Consulting (NYSE FCN) opened at $43.19 on Wednesday. The stock has a market cap of $1,640.00, a PE ratio of 35.11 and a beta of 0.33. FTI Consulting has a 1 year low of $31.65 and a 1 year high of $45.67. The company has a debt-to-equity ratio of 0.41, a quick ratio of 2.15 and a current ratio of 2.15.

FTI Consulting (NYSE:FCN) last issued its quarterly earnings results on Thursday, October 26th. The business services provider reported $0.83 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $0.59 by $0.24. The business had revenue of $448.96 million for the quarter, compared to analysts’ expectations of $446.63 million. FTI Consulting had a net margin of 2.70% and a return on equity of 6.12%. The business’s quarterly revenue was up 2.5% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.52 earnings per share. research analysts expect that FTI Consulting will post 2.06 EPS for the current fiscal year.

FTI Consulting announced that its Board of Directors has initiated a stock buyback program on Monday, December 4th that allows the company to buyback $100.00 million in outstanding shares. This buyback authorization allows the business services provider to buy shares of its stock through open market purchases. Shares buyback programs are typically a sign that the company’s board believes its shares are undervalued.

Several institutional investors and hedge funds have recently modified their holdings of the company. Black Creek Investment Management Inc. increased its stake in shares of FTI Consulting by 19.6% during the second quarter. Black Creek Investment Management Inc. now owns 4,512,287 shares of the business services provider’s stock worth $157,750,000 after buying an additional 739,072 shares during the period. State Street Corp increased its stake in shares of FTI Consulting by 3.5% during the second quarter. State Street Corp now owns 1,349,945 shares of the business services provider’s stock worth $47,192,000 after buying an additional 45,366 shares during the period. Northern Trust Corp increased its stake in shares of FTI Consulting by 34.0% during the second quarter. Northern Trust Corp now owns 1,230,348 shares of the business services provider’s stock worth $43,013,000 after buying an additional 311,939 shares during the period. JPMorgan Chase & Co. increased its stake in shares of FTI Consulting by 2.0% during the second quarter. JPMorgan Chase & Co. now owns 800,922 shares of the business services provider’s stock worth $28,000,000 after buying an additional 15,665 shares during the period. Finally, Thompson Siegel & Walmsley LLC increased its stake in shares of FTI Consulting by 8.1% during the third quarter. Thompson Siegel & Walmsley LLC now owns 578,890 shares of the business services provider’s stock worth $20,539,000 after buying an additional 43,256 shares during the period. 97.19% of the stock is currently owned by institutional investors and hedge funds.

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About FTI Consulting

FTI Consulting, Inc is a business advisory company. The Company operates through five segments: Corporate Finance & Restructuring, Forensic and Litigation Consulting, Economic Consulting, Technology and Strategic Communications. The Company provides advice and services, such as restructuring (including bankruptcy), capital formation and indebtedness, interim business management, performance improvements, forensic accounting and litigation matters, international arbitrations, mergers and acquisitions (M&A), antitrust and competition matters, securities litigation, electronic discovery (or e-discovery), management and retrieval of electronically stored information (ESI), reputation management and strategic communications.

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