Arcosa, Inc. (NYSE:ACA) Receives Average Recommendation of "Hold" from Analysts

Key Points

• Analysts have a consensus “Hold” rating on Arcosa, with five holds and two buys among seven firms. The average 12-month price target is $138.33, below the stock’s recent $145.39 price.
• Institutional investors hold 90.66% of Arcosa’s shares, with several major funds increasing their positions during the fourth quarter, including T. Rowe Price, which boosted its stake by 25.1%.
• Arcosa exceeded quarterly EPS expectations, reporting $0.51 versus the $0.13 consensus, while revenue rose 5% year over year to $571.7 million. The company also maintains a modest quarterly dividend of $0.05 per share.

Arcosa, Inc. (NYSE:ACA - Get Free Report) has earned an average recommendation of "Hold" from the seven ratings firms that are presently covering the firm, Marketbeat Ratings reports. Five analysts have rated the stock with a hold rating and two have issued a buy rating on the company. The average 12 month target price among analysts that have covered the stock in the last year is $138.3333.

Several analysts have issued reports on ACA shares. Wall Street Zen upgraded shares of Arcosa from a "sell" rating to a "hold" rating in a research report on Saturday, May 30th. Texas Capital lowered shares of Arcosa from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, June 23rd. Zacks Research upgraded shares of Arcosa from a "strong sell" rating to a "hold" rating in a research note on Monday, June 22nd. Oppenheimer downgraded Arcosa from an "outperform" rating to a "market perform" rating in a research report on Friday, June 26th. Finally, Weiss Ratings lowered Arcosa from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Monday, May 11th.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of the company. Dimensional Fund Advisors LP boosted its stake in Arcosa by 0.6% during the fourth quarter. Dimensional Fund Advisors LP now owns 2,322,901 shares of the company's stock worth $246,976,000 after buying an additional 13,059 shares in the last quarter. Capital International Investors lifted its holdings in shares of Arcosa by 0.7% during the 4th quarter. Capital International Investors now owns 2,244,231 shares of the company's stock worth $238,607,000 after acquiring an additional 15,956 shares during the period. State Street Corp boosted its position in shares of Arcosa by 1.9% during the 4th quarter. State Street Corp now owns 1,948,344 shares of the company's stock valued at $207,148,000 after acquiring an additional 36,852 shares in the last quarter. T. Rowe Price Investment Management Inc. boosted its position in shares of Arcosa by 25.1% during the 4th quarter. T. Rowe Price Investment Management Inc. now owns 1,707,884 shares of the company's stock valued at $181,583,000 after acquiring an additional 342,242 shares in the last quarter. Finally, Capital World Investors increased its stake in Arcosa by 5.0% in the fourth quarter. Capital World Investors now owns 1,680,000 shares of the company's stock valued at $178,618,000 after acquiring an additional 80,000 shares during the period. 90.66% of the stock is owned by institutional investors.

Arcosa Stock Up 0.1%

ACA opened at $145.39 on Monday. The business has a 50 day moving average of $137.85 and a 200-day moving average of $123.73. The stock has a market capitalization of $7.14 billion, a price-to-earnings ratio of 32.09, a P/E/G ratio of 2.14 and a beta of 1.04. The company has a current ratio of 2.32, a quick ratio of 1.60 and a debt-to-equity ratio of 0.57. Arcosa has a 1-year low of $81.91 and a 1-year high of $146.92.

Arcosa (NYSE:ACA - Get Free Report) last announced its earnings results on Thursday, April 30th. The company reported $0.51 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.13 by $0.38. Arcosa had a net margin of 7.88% and a return on equity of 8.52%. The business had revenue of $571.70 million for the quarter, compared to analyst estimates of $642.40 million. During the same quarter in the previous year, the firm posted $0.49 earnings per share. Arcosa's revenue was up 5.0% compared to the same quarter last year. As a group, sell-side analysts anticipate that Arcosa will post 4.25 earnings per share for the current year.

Arcosa Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Friday, July 31st. Stockholders of record on Wednesday, July 15th were given a dividend of $0.05 per share. The ex-dividend date was Wednesday, July 15th. This represents a $0.20 dividend on an annualized basis and a dividend yield of 0.1%. Arcosa's payout ratio is currently 4.42%.

Arcosa Company Profile

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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