Aecon Group (TSE:ARE) Stock Passes Above 200 Day Moving Average - Here's Why

Key Points

• Aecon Group shares rose above their 200-day moving average, trading as high as C$51.95 and last changing hands at C$50.31, a sign of improved short-term momentum.
• Analyst sentiment has turned moderately positive, with several firms lifting price targets and the consensus rating sitting at “Moderate Buy” with an average target price of C$55.08.
• The company reported weak recent quarterly earnings, including an EPS loss of C($0.21) on revenue of C$1.26 billion, while also paying a quarterly dividend that equates to a 1.5% yield.

Aecon Group Inc. (TSE:ARE - Get Free Report)'s share price passed above its 200-day moving average during trading on Friday . The stock has a 200-day moving average of C$42.98 and traded as high as C$51.95. Aecon Group shares last traded at C$50.31, with a volume of 222,513 shares changing hands.

Analysts Set New Price Targets

Several equities research analysts recently commented on ARE shares. Royal Bank Of Canada lifted their target price on shares of Aecon Group from C$44.00 to C$49.00 and gave the stock a "sector perform" rating in a research report on Thursday, April 30th. TD dropped their price target on shares of Aecon Group from C$62.00 to C$61.00 and set a "buy" rating for the company in a research note on Friday, June 26th. National Bank Financial lifted their price target on shares of Aecon Group from C$59.00 to C$65.00 and gave the stock an "outperform" rating in a report on Monday, July 13th. Raymond James Financial raised shares of Aecon Group from a "hold" rating to a "moderate buy" rating and boosted their price objective for the stock from C$52.00 to C$60.00 in a research note on Friday, July 3rd. Finally, Canadian Imperial Bank of Commerce increased their price objective on Aecon Group from C$45.00 to C$48.00 in a report on Thursday, April 9th. Six investment analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company. According to data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average target price of C$55.08.

Aecon Group Price Performance

The firm has a market cap of C$3.44 billion, a price-to-earnings ratio of 91.47, a P/E/G ratio of 18.18 and a beta of 1.38. The business's 50-day simple moving average is C$47.04 and its two-hundred day simple moving average is C$42.98. The company has a current ratio of 1.16, a quick ratio of 1.27 and a debt-to-equity ratio of 42.80.

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

Aecon Group Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, July 3rd. Investors of record on Friday, July 3rd were issued a $0.1925 dividend. The ex-dividend date was Tuesday, June 23rd. This represents a $0.77 annualized dividend and a yield of 1.5%. Aecon Group's payout ratio is presently 138.64%.

Insider Buying and Selling at Aecon Group

In other news, insider Ernest Chan sold 521 shares of the business's stock in a transaction dated Friday, May 8th. The stock was sold at an average price of C$55.09, for a total value of C$28,701.89. Following the transaction, the insider directly owned 11,003 shares of the company's stock, valued at C$606,155.27. The trade was a 4.52% decrease in their position. Also, insider Timothy John Murphy sold 2,930 shares of the business's stock in a transaction dated Monday, May 11th. The shares were sold at an average price of C$52.31, for a total value of C$153,268.30. Following the completion of the transaction, the insider directly owned 4,801 shares in the company, valued at C$251,140.31. This represents a 37.90% decrease in their ownership of the stock. Over the last quarter, insiders have sold 23,451 shares of company stock valued at $1,177,370. 0.82% of the stock is currently owned by insiders.

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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