Arcosa, Inc. (NYSE:ACA) Given Consensus Rating of "Buy" by Analysts

Key Points

• Consensus "Buy": Five brokerages covering Arcosa give it a consensus "Buy" rating (one hold, three buy, one strong buy) with an average 12‑month price target of $120.00.
• Quarterly results: Arcosa reported $1.15 EPS versus a $0.95 consensus and revenue of $716.7M (slightly below estimates), with revenue up 7.6% year‑over‑year and analysts projecting ~3.23 EPS for the year.
• Dividend and positioning: The company declared a $0.05 quarterly dividend (0.2% yield), has a $5.01B market cap and a P/E of ~24, and is roughly 90.66% institutionally owned.

Shares of Arcosa, Inc. (NYSE:ACA - Get Free Report) have received a consensus recommendation of "Buy" from the five brokerages that are presently covering the company, MarketBeat Ratings reports. One analyst has rated the stock with a hold recommendation, three have issued a buy recommendation and one has assigned a strong buy recommendation to the company. The average 12 month price objective among brokerages that have issued ratings on the stock in the last year is $120.00.

A number of analysts have commented on the stock. Weiss Ratings upgraded shares of Arcosa from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Tuesday, March 17th. DA Davidson upped their price target on Arcosa from $120.00 to $125.00 and gave the stock a "buy" rating in a report on Monday, March 2nd. Wall Street Zen downgraded shares of Arcosa from a "buy" rating to a "hold" rating in a research report on Sunday, March 1st. Finally, Texas Capital raised Arcosa to a "strong-buy" rating in a research report on Friday.

Arcosa Stock Performance

Shares of Arcosa stock opened at $102.10 on Tuesday. The business has a 50-day moving average price of $114.79 and a two-hundred day moving average price of $106.22. Arcosa has a 1-year low of $68.11 and a 1-year high of $131.00. The company has a current ratio of 2.20, a quick ratio of 1.35 and a debt-to-equity ratio of 0.57. The company has a market cap of $5.01 billion, a P/E ratio of 24.08, a PEG ratio of 1.35 and a beta of 1.01.

Arcosa (NYSE:ACA - Get Free Report) last announced its quarterly earnings data on Thursday, February 26th. The company reported $1.15 EPS for the quarter, topping the consensus estimate of $0.95 by $0.20. The company had revenue of $716.70 million during the quarter, compared to the consensus estimate of $719.46 million. Arcosa had a net margin of 7.23% and a return on equity of 8.64%. The company's quarterly revenue was up 7.6% on a year-over-year basis. During the same quarter last year, the firm posted $0.46 EPS. As a group, analysts anticipate that Arcosa will post 3.23 EPS for the current year.

Arcosa Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, April 30th. Investors of record on Wednesday, April 15th will be given a dividend of $0.05 per share. The ex-dividend date is Wednesday, April 15th. This represents a $0.20 annualized dividend and a yield of 0.2%. Arcosa's dividend payout ratio is presently 4.72%.

Institutional Trading of Arcosa

Hedge funds have recently added to or reduced their stakes in the stock. First Horizon Corp purchased a new stake in Arcosa during the 3rd quarter worth about $32,000. Salomon & Ludwin LLC purchased a new position in Arcosa during the 3rd quarter valued at about $33,000. Farther Finance Advisors LLC increased its position in shares of Arcosa by 73.4% during the fourth quarter. Farther Finance Advisors LLC now owns 307 shares of the company's stock valued at $33,000 after buying an additional 130 shares during the period. Bessemer Group Inc. lifted its holdings in shares of Arcosa by 47.8% in the third quarter. Bessemer Group Inc. now owns 368 shares of the company's stock worth $35,000 after buying an additional 119 shares in the last quarter. Finally, Quarry LP lifted its holdings in shares of Arcosa by 160.0% in the third quarter. Quarry LP now owns 403 shares of the company's stock worth $38,000 after buying an additional 248 shares in the last quarter. Institutional investors own 90.66% of the company's stock.

About Arcosa

Arcosa, Inc NYSE: ACA is a Dallas‐based industrial company that was formed through the spin‐off of Trinity Industries' construction products business in 2018. Since its inception, Arcosa has focused on the manufacture and sale of critical infrastructure components, serving a diverse set of end markets including transportation, construction and energy.

The company's Construction Products segment produces a broad range of highway safety products, such as guardrail systems, sign supports and crash cushions, as well as aggregates and ready‐mix concrete.

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