Knife River (NYSE:KNF) Lowered to Strong Sell Rating by Zacks Research

Key Points

• Zacks Research downgraded Knife River to “strong sell” from “hold,” while JPMorgan also cut its rating to “underweight” and reduced its price target to $73. Despite these downgrades, the broader analyst consensus remains “Moderate Buy” with an $85.86 target.
• Knife River shares opened at $61.27, near their 52-week low of $58.72 and well below the 52-week high of $96.28. The stock was trading below both its 50-day and 200-day moving averages.
• The company’s latest quarterly results were mixed: revenue rose 12.6% year over year to $938.57 million and exceeded estimates, but earnings per share of $0.77 missed consensus by $0.36. Institutional investors own approximately 80.11% of the stock.

Knife River (NYSE:KNF - Get Free Report) was downgraded by investment analysts at Zacks Research from a "hold" rating to a "strong sell" rating in a research report issued to clients and investors on Tuesday, Zacks reports.

Other equities research analysts have also issued research reports about the stock. JPMorgan Chase & Co. lowered shares of Knife River from a "neutral" rating to an "underweight" rating and lowered their target price for the stock from $80.00 to $73.00 in a report on Wednesday. Weiss Ratings reissued a "hold (c)" rating on shares of Knife River in a report on Monday, August 24th. DA Davidson initiated coverage on shares of Knife River in a research report on Monday, August 24th. They issued a "buy" rating and a $85.00 price target on the stock. Stephens set a $80.00 price target on shares of Knife River in a research report on Wednesday, August 5th. Finally, Royal Bank Of Canada decreased their price objective on shares of Knife River from $107.00 to $103.00 and set an "outperform" rating on the stock in a research note on Wednesday, August 5th. One analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, two have given a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $85.86.

Knife River Trading Down 0.9%

Shares of KNF opened at $61.27 on Tuesday. The company has a current ratio of 2.66, a quick ratio of 1.60 and a debt-to-equity ratio of 1.00. The stock has a market cap of $3.48 billion, a PE ratio of 25.01, a PEG ratio of 1.19 and a beta of 0.38. Knife River has a 1 year low of $58.72 and a 1 year high of $96.28. The stock has a 50 day simple moving average of $74.46 and a 200-day simple moving average of $79.82.

Knife River (NYSE:KNF - Get Free Report) last announced its quarterly earnings results on Tuesday, August 4th. The company reported $0.77 EPS for the quarter, missing the consensus estimate of $1.13 by ($0.36). Knife River had a net margin of 4.23% and a return on equity of 8.73%. The company had revenue of $938.57 million during the quarter, compared to analyst estimates of $931.39 million. During the same period in the prior year, the firm earned $0.89 EPS. Knife River's quarterly revenue was up 12.6% compared to the same quarter last year. On average, sell-side analysts predict that Knife River will post 3.08 EPS for the current fiscal year.

Institutional Trading of Knife River

A number of hedge funds and other institutional investors have recently made changes to their positions in KNF. Corient Private Wealth LP lifted its position in Knife River by 647.7% during the 2nd quarter. Corient Private Wealth LP now owns 33,783 shares of the company's stock worth $2,826,000 after buying an additional 29,265 shares in the last quarter. California State Teachers Retirement System grew its holdings in Knife River by 8,210.9% during the 2nd quarter. California State Teachers Retirement System now owns 5,491,790 shares of the company's stock worth $459,388,000 after acquiring an additional 5,425,711 shares during the last quarter. Nykredit A S acquired a new stake in Knife River in the 2nd quarter valued at about $121,000. Public Employees Retirement System of Ohio acquired a new stake in Knife River in the 2nd quarter valued at about $3,187,000. Finally, Ancora Advisors LLC bought a new position in shares of Knife River in the second quarter worth about $124,000. 80.11% of the stock is currently owned by institutional investors and hedge funds.

Knife River Company Profile

Knife River Corporation, headquartered in Bismarck, North Dakota, is a leading integrated construction materials and contracting company in the western United States. The company specializes in producing and supplying aggregates, asphalt mix, ready-mixed concrete and other heavy construction materials used in highway, commercial and residential projects.

In addition to material production, Knife River offers a comprehensive suite of contracting services, including heavy civil construction, road building, underground and open-pit mining and logistics support.

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