Aecon Group (TSE:ARE) Sets New 1-Year High Following Analyst Upgrade

Key Points

• Stock hit a 52-week high after National Bank Financial upgraded Aecon to "outperform" and raised its price target to C$48, with other analysts also lifting targets though MarketBeat's consensus remains a "Hold" (average target C$43.88).
• Insider selling occurred — Director Eric Stuart Rosenfeld sold 125,000 shares for C$5.205 million on March 27, reducing his stake by 40.43%; corporate insiders now own 0.82% of the company.
• Valuation and profitability look stretched: market cap C$3.06 billion and a P/E of 194.5 contrast with weak margins (net margin 0.28%, ROE 1.66%), while the dividend yields 1.7% but carries a very high payout ratio (DPR 330.4%), signaling potential sustainability concerns.

Aecon Group Inc. (TSE:ARE - Get Free Report)'s stock price reached a new 52-week high during trading on Thursday after National Bank Financial raised their price target on the stock from C$45.00 to C$48.00. National Bank Financial currently has an outperform rating on the stock. Aecon Group traded as high as C$45.00 and last traded at C$44.74, with a volume of 52811 shares traded. The stock had previously closed at C$43.52.

Other equities analysts also recently issued reports about the stock. BMO Capital Markets raised their price objective on shares of Aecon Group from C$40.00 to C$45.00 and gave the stock an "outperform" rating in a report on Monday, March 30th. ATB Cormark Capital Markets raised their price objective on shares of Aecon Group from C$39.00 to C$42.00 and gave the stock a "sector perform" rating in a report on Monday, March 30th. Stifel Nicolaus reduced their price objective on shares of Aecon Group from C$34.25 to C$28.75 and set a "hold" rating for the company in a report on Monday, March 9th. Royal Bank Of Canada raised their price objective on shares of Aecon Group from C$30.00 to C$41.00 and gave the stock a "sector perform" rating in a report on Tuesday, March 10th. Finally, Raymond James Financial raised their price objective on shares of Aecon Group from C$41.00 to C$44.00 and gave the stock a "market perform" rating in a report on Tuesday, March 31st. Four research analysts have rated the stock with a Buy rating and six have given a Hold rating to the company's stock. According to MarketBeat, Aecon Group has a consensus rating of "Hold" and an average target price of C$43.88.

Insider Transactions at Aecon Group

In related news, Director Eric Stuart Rosenfeld sold 125,000 shares of Aecon Group stock in a transaction dated Friday, March 27th. The shares were sold at an average price of C$41.64, for a total transaction of C$5,205,000.00. Following the completion of the transaction, the director directly owned 184,200 shares of the company's stock, valued at C$7,670,088. This trade represents a 40.43% decrease in their position. 0.82% of the stock is owned by corporate insiders.

Aecon Group Stock Up 2.8%

The stock has a market capitalization of C$3.06 billion, a P/E ratio of 194.52, a P/E/G ratio of 18.18 and a beta of 0.97. The firm's fifty day moving average is C$39.36 and its 200-day moving average is C$32.48. The company has a current ratio of 1.10, a quick ratio of 1.27 and a debt-to-equity ratio of 65.17.

Aecon Group (TSE:ARE - Get Free Report) last announced its quarterly earnings results on Thursday, March 5th. The company reported C$0.52 earnings per share (EPS) for the quarter. Aecon Group had a net margin of 0.28% and a return on equity of 1.66%. The firm had revenue of C$1.54 billion during the quarter. As a group, equities research analysts predict that Aecon Group Inc. will post 1.3793321 earnings per share for the current year.

Aecon Group Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Thursday, April 2nd. Shareholders of record on Thursday, April 2nd were given a $0.1925 dividend. This represents a $0.77 annualized dividend and a yield of 1.7%. The ex-dividend date was Monday, March 23rd. Aecon Group's dividend payout ratio (DPR) is presently 330.43%.

About Aecon Group

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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