Astec Industries (NASDAQ:ASTE) Shares Gap Down on Disappointing Earnings

Key Points

• Astec gapped down after an earnings miss: The company reported EPS of $0.54 versus $0.88 expected, sending the stock from a $62.70 close to a $57.40 open and trading near $51.94 on elevated volume.
• Quarterly dividend announced: Astec declared a $0.13 quarterly dividend (annualized $0.52) payable May 29 with an ex-dividend date of May 13, implying a ~1.0% yield and a ~30.95% payout ratio.
• Analyst coverage is mixed but leans positive overall: two analysts rate Astec a Strong Buy, two rate it a Hold, and the consensus per MarketBeat is a "Buy."

Astec Industries, Inc. (NASDAQ:ASTE - Get Free Report) gapped down prior to trading on Wednesday following a weaker than expected earnings announcement. The stock had previously closed at $62.70, but opened at $57.40. Astec Industries shares last traded at $51.9390, with a volume of 41,671 shares.

The industrial products company reported $0.54 EPS for the quarter, missing analysts' consensus estimates of $0.88 by ($0.34). Astec Industries had a net margin of 2.75% and a return on equity of 11.35%. The company had revenue of $396.30 million during the quarter, compared to analyst estimates of $393.24 million.

Astec Industries Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Friday, May 29th. Shareholders of record on Wednesday, May 13th will be paid a $0.13 dividend. This represents a $0.52 dividend on an annualized basis and a yield of 1.0%. The ex-dividend date is Wednesday, May 13th. Astec Industries's payout ratio is presently 30.95%.

Analysts Set New Price Targets

ASTE has been the subject of a number of research reports. Freedom Capital upgraded Astec Industries to a "strong-buy" rating in a research note on Wednesday, April 1st. Zacks Research downgraded Astec Industries from a "strong-buy" rating to a "hold" rating in a research note on Monday, April 27th. Wall Street Zen downgraded Astec Industries from a "strong-buy" rating to a "buy" rating in a research note on Saturday. Finally, Longbow Research upgraded Astec Industries to a "strong-buy" rating in a research note on Monday, March 16th. Two investment analysts have rated the stock with a Strong Buy rating and two have issued a Hold rating to the company. According to MarketBeat.com, the stock currently has an average rating of "Buy".

Insider Activity

In other news, insider Edward Terrell Gilbert, Jr. sold 975 shares of the business's stock in a transaction that occurred on Tuesday, March 3rd. The stock was sold at an average price of $61.07, for a total transaction of $59,543.25. Following the completion of the transaction, the insider directly owned 8,828 shares in the company, valued at approximately $539,125.96. The trade was a 9.95% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Corporate insiders own 0.99% of the company's stock.

Hedge Funds Weigh In On Astec Industries

Hedge funds and other institutional investors have recently made changes to their positions in the business. iSAM Funds UK Ltd acquired a new position in shares of Astec Industries during the third quarter worth approximately $50,000. Farther Finance Advisors LLC boosted its position in shares of Astec Industries by 8,994.1% during the fourth quarter. Farther Finance Advisors LLC now owns 1,546 shares of the industrial products company's stock worth $67,000 after buying an additional 1,529 shares during the period. Tower Research Capital LLC TRC raised its holdings in Astec Industries by 412.0% during the second quarter. Tower Research Capital LLC TRC now owns 2,212 shares of the industrial products company's stock worth $92,000 after purchasing an additional 1,780 shares in the last quarter. SG Americas Securities LLC bought a new stake in Astec Industries during the third quarter worth approximately $136,000. Finally, Aster Capital Management DIFC Ltd bought a new stake in Astec Industries during the fourth quarter worth approximately $127,000. 93.16% of the stock is currently owned by institutional investors and hedge funds.

Astec Industries Stock Performance

The stock has a market cap of $1.21 billion, a P/E ratio of 30.80, a PEG ratio of 2.33 and a beta of 1.47. The company has a fifty day moving average of $57.54 and a 200 day moving average of $51.22. The company has a debt-to-equity ratio of 0.47, a current ratio of 2.49 and a quick ratio of 1.07.

About Astec Industries

Astec Industries, Inc is a designer and manufacturer of specialized equipment for infrastructure-related markets. Headquartered in Chattanooga, Tennessee, the company develops, engineers and produces machinery for asphalt road-building, aggregate processing, concrete production, underground mining, landscaping and utility installation. Astec's product portfolio includes asphalt plants, portable crushers, conveyors, screening plants, mixers, continuous miners and related support equipment.

Organized into multiple operating segments—Roadbuilding; Aggregate & Mining; Energy; and Pavement Preservation & Maintenance—Astec Industries serves contractors and municipalities that build and maintain transportation, energy and utility networks.

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