Arcosa (NYSE:ACA) Rating Lowered to Strong Sell at Zacks Research

Key Points

• Zacks Research downgraded Arcosa (NYSE:ACA) from a "hold" to a strong sell rating in its latest research note.
• Despite the Zacks downgrade, analyst consensus is still a Moderate Buy with an average price target of $120, reflecting mixed ratings ranging from Strong Buy to Sell.
• Arcosa reported stronger-than-expected EPS ($1.15 vs. $0.95) and 7.6% year-over-year revenue growth but slightly missed revenue estimates, and institutional ownership is very high at 90.66% after sizable stake increases by firms like Franklin Resources, Norges Bank and T. Rowe Price.

Arcosa (NYSE:ACA - Get Free Report) was downgraded by investment analysts at Zacks Research from a "hold" rating to a "strong sell" rating in a research note issued on Tuesday,Zacks.com reports.

A number of other equities research analysts have also recently commented on ACA. Wall Street Zen cut shares of Arcosa from a "buy" rating to a "hold" rating in a report on Sunday, March 1st. DA Davidson lifted their price target on shares of Arcosa from $120.00 to $125.00 and gave the stock a "buy" rating in a report on Monday, March 2nd. Texas Capital raised shares of Arcosa to a "strong-buy" rating in a report on Friday, March 27th. Finally, Weiss Ratings raised shares of Arcosa from a "hold (c+)" rating to a "buy (b-)" rating in a report on Monday. One research analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, Arcosa presently has a consensus rating of "Moderate Buy" and an average price target of $120.00.

Arcosa Price Performance

Arcosa stock opened at $116.68 on Tuesday. Arcosa has a 52 week low of $77.89 and a 52 week high of $131.00. The company's 50 day moving average price is $111.60 and its two-hundred day moving average price is $109.13. The company has a quick ratio of 1.35, a current ratio of 2.20 and a debt-to-equity ratio of 0.57. The stock has a market cap of $5.73 billion, a P/E ratio of 27.52, a P/E/G ratio of 1.84 and a beta of 0.96.

Arcosa (NYSE:ACA - Get Free Report) last posted its earnings results on Thursday, February 26th. The company reported $1.15 EPS for the quarter, topping the consensus estimate of $0.95 by $0.20. Arcosa had a net margin of 7.23% and a return on equity of 8.64%. The firm had revenue of $716.70 million for the quarter, compared to analysts' expectations of $719.46 million. During the same quarter last year, the firm earned $0.46 EPS. The company's quarterly revenue was up 7.6% compared to the same quarter last year. On average, equities analysts predict that Arcosa will post 4.1 earnings per share for the current year.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of ACA. Franklin Resources Inc. grew its stake in Arcosa by 2,770.5% in the 4th quarter. Franklin Resources Inc. now owns 736,018 shares of the company's stock valued at $78,253,000 after buying an additional 710,377 shares in the last quarter. Norges Bank purchased a new position in Arcosa in the 4th quarter valued at approximately $68,225,000. Capital International Investors grew its stake in Arcosa by 28.3% in the 3rd quarter. Capital International Investors now owns 2,228,275 shares of the company's stock valued at $208,812,000 after buying an additional 491,165 shares in the last quarter. Vaughan Nelson Investment Management L.P. purchased a new position in shares of Arcosa during the 3rd quarter valued at $37,035,000. Finally, T. Rowe Price Investment Management Inc. grew 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 purchasing an additional 342,242 shares in the last quarter. 90.66% of the stock is currently owned by hedge funds and other institutional investors.

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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