Aecon Group (TSE:ARE) Hits New 52-Week High - Time to Buy?

Key Points

• Shares of Aecon Group hit a new 52-week high, trading as high as C$55.09 (last C$54.47) on heavy volume (773,834 shares), up from a prior close of C$51.76.
• Analysts are mixed: Jefferies and National Bank raised targets to C$59, but the consensus remains a Hold with an average price target of C$52.29 (4 Buy, 7 Hold).
• Fundamentals show a stretched valuation (P/E ~99) and a recent quarterly loss of C($0.21) on C$1.26B revenue, while the dividend yields 1.4% with a payout ratio of 138.64%, raising sustainability concerns.

Shares of Aecon Group Inc. (TSE:ARE - Get Free Report) hit a new 52-week high on Tuesday . The stock traded as high as C$55.09 and last traded at C$54.47, with a volume of 773834 shares trading hands. The stock had previously closed at C$51.76.

Analysts Set New Price Targets

Several brokerages have weighed in on ARE. Canadian Imperial Bank of Commerce lifted their target price on Aecon Group from C$45.00 to C$48.00 in a research note on Thursday, April 9th. Stifel Nicolaus lowered their target price on Aecon Group from C$46.00 to C$44.50 and set a "hold" rating on the stock in a research note on Thursday, April 30th. National Bank Financial lifted their target price on Aecon Group from C$48.00 to C$59.00 and gave the company an "outperform" rating in a research note on Thursday, April 30th. Jefferies Financial Group lifted their target price on Aecon Group from C$49.00 to C$59.00 in a research note on Monday, April 27th. Finally, Desjardins lifted their target price on Aecon Group from C$45.00 to C$52.00 and gave the company a "hold" rating in a research note on Thursday, April 30th. Four analysts have rated the stock with a Buy rating and seven have given a Hold rating to the stock. According to MarketBeat, Aecon Group has a consensus rating of "Hold" and an average price target of C$52.29.

Aecon Group Stock Performance

The company has a debt-to-equity ratio of 42.80, a current ratio of 1.16 and a quick ratio of 1.27. The stock has a market capitalization of C$3.73 billion, a PE ratio of 99.04, a P/E/G ratio of 18.18 and a beta of 1.16. The stock has a 50 day moving average of C$42.82 and a two-hundred day moving average of C$35.14.

Aecon Group (TSE:ARE - Get Free Report) last posted its quarterly earnings results on Tuesday, April 28th. The company reported C($0.21) earnings per share for the quarter. Aecon Group had a net margin of 0.62% and a return on equity of 3.71%. The business had revenue of C$1.26 billion during the quarter. Research analysts expect that Aecon Group Inc. will post 1.3793321 EPS for the current fiscal year.

Aecon Group Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Thursday, April 2nd. Investors of record on Thursday, April 2nd were paid a $0.1925 dividend. The ex-dividend date was Monday, March 23rd. This represents a $0.77 dividend on an annualized basis and a dividend yield of 1.4%. Aecon Group's payout ratio is 138.64%.

Insider Buying and Selling at Aecon Group

In related news, Director Eric Stuart Rosenfeld sold 125,000 shares of Aecon Group stock in a transaction that occurred on Friday, March 27th. The stock was sold at an average price of C$41.64, for a total value of C$5,205,000.00. Following the sale, the director directly owned 184,200 shares in the company, valued at C$7,670,088. The trade was a 40.43% decrease in their ownership of the stock. 0.82% of the stock is currently owned by company insiders.

Aecon Group Company Profile

Aecon Group Inc is a Canada-based company that operates in two segments: Construction and Concessions. The Construction segment includes various aspects of the construction of public and private infrastructure projects, mainly in the transportation sector. Its concessions segment is engaged in the development, financing, construction, and operation of infrastructure projects. Aecon generates the majority of its revenue from the Construction segment.

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