USS Investment Management Reduces Stake in CRH by 22.8%
USS Investment Management Ltd has reduced its holdings in CRH Plc by 22.8%, according to its recent filing with the Securities and Exchange Commission (SEC). The institutional investor now holds 111,577 shares of the construction company, having sold 33,000 shares during the first quarter of 2024. At the close of the reporting period, USS Investment Management’s stake was valued at approximately $9.8 million.
This shift comes amid a broader trend of fluctuating institutional investments in CRH. Several other hedge funds have also adjusted their positions. Notably, Vanguard Group Inc. increased its stake in CRH by 62.8%, acquiring an additional 24,591,538 shares to reach a total of 63,755,468 shares, valued at around $5.6 billion.
Similarly, Massachusetts Financial Services Co. boosted its holdings by 43.2%, now owning 10,303,788 shares worth approximately $906.4 million. Other significant investors include Bank of New York Mellon Corp, which increased its stake by 2.6%, owning 8,830,489 shares, and Boston Partners, which grew its stake by 5.9%, holding 8,822,801 shares. Amundi also raised its stake by 11.8%, owning 7,979,264 shares. Collectively, institutional investors control 62.5% of CRH’s stock.
Stock Performance and Dividends
On Monday, shares of CRH opened at $112.24. The stock has a market capitalization of $75.5 billion with a price-to-earnings (P/E) ratio of 23.48 and a beta of 1.31. The company’s fifty-day moving average stands at $102.68, while its 200-day moving average is $96.22. CRH’s stock has fluctuated within a 52-week range of $76.75 to $114.40.
CRH has also announced a quarterly dividend of $0.37 per share, set to be distributed on September 24, 2024. Investors on record as of August 22, 2024 will receive the payment, translating to an annualized dividend of $1.48 and a yield of 1.3%. The company’s dividend payout ratio is currently at 23.22%.
Analyst Ratings and Future Outlook
Recent research reports have provided varied assessments of CRH’s stock. DA Davidson has maintained a “neutral” rating, reducing its price target to $105.00 from $120.00. Conversely, Morgan Stanley has reaffirmed an “overweight” rating, while JPMorgan Chase & Co. initiated coverage on CRH with an “overweight” rating and a price target of $130.00.
In contrast, Vertical Research upgraded CRH to a “strong-buy” rating, reflecting confidence in the company’s long-term prospects. According to data from MarketBeat, two analysts have issued a “Strong Buy” rating, nine recommend buying the stock, and two maintain a hold rating. The average rating across analysts stands at “Buy” with a consensus price target of $114.64.
CRH Plc, headquartered in Ireland, operates through four segments: Americas Materials Solutions, Americas Building Solutions, Europe Materials Solutions, and Europe Building Solutions. The company specializes in providing building materials for public infrastructure and commercial and residential properties, producing aggregates, cement, readymixed concrete, and asphalt, and offering comprehensive paving and construction services.
As institutional investors re-evaluate their positions, the market will be watching closely to see how these changes impact CRH’s performance moving forward.
