Astec Industries (NASDAQ:ASTE) Shares Gap Up - Should You Buy?

Key Points

• Astec Industries shares opened higher, rising from a prior close of $41.87 to $43.64, though the stock remained well below its 50-day and 200-day moving averages.
• Analyst sentiment has weakened, with Zacks Research downgrading the stock to “strong sell” and Wall Street Zen cutting its rating to “hold”; despite this, the overall consensus remains “Moderate Buy.”
• The company reported quarterly EPS of $0.94, missing estimates by $0.10, while revenue exceeded expectations. Astec also declared a quarterly dividend of $0.13, equivalent to a 1.2% annual yield.

Astec Industries, Inc. (NASDAQ:ASTE - Get Free Report)'s stock price gapped up prior to trading on Monday . The stock had previously closed at $41.87, but opened at $43.64. Astec Industries shares last traded at $43.5240, with a volume of 6,750 shares.

Analyst Ratings Changes

Several research firms recently weighed in on ASTE. Zacks Research downgraded Astec Industries from a "hold" rating to a "strong sell" rating in a research report on Thursday, August 6th. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Astec Industries in a research note on Tuesday, August 4th. Finally, Wall Street Zen cut Astec Industries from a "buy" rating to a "hold" rating in a research report on Saturday, July 4th. Two investment analysts have rated the stock with a Strong Buy rating, one has given a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the company has a consensus rating of "Moderate Buy".

Astec Industries Trading Down 0.4%

The stock's 50-day simple moving average is $52.64 and its two-hundred day simple moving average is $54.36. The company has a debt-to-equity ratio of 0.53, a current ratio of 2.52 and a quick ratio of 1.10. The firm has a market capitalization of $998.38 million, a P/E ratio of 51.02, a price-to-earnings-growth ratio of 1.18 and a beta of 1.36.

Astec Industries (NASDAQ:ASTE - Get Free Report) last announced its quarterly earnings data on Wednesday, August 5th. The industrial products company reported $0.94 EPS for the quarter, missing the consensus estimate of $1.04 by ($0.10). Astec Industries had a net margin of 1.26% and a return on equity of 10.26%. The firm had revenue of $408.10 million for the quarter, compared to the consensus estimate of $405.50 million. During the same quarter in the previous year, the business earned $0.72 earnings per share. Equities research analysts expect that Astec Industries, Inc. will post 3.36 EPS for the current year.

Astec Industries Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, August 28th. Shareholders of record on Monday, August 10th will be paid a $0.13 dividend. This represents a $0.52 dividend on an annualized basis and a yield of 1.2%. The ex-dividend date is Monday, August 10th. Astec Industries's dividend payout ratio is presently 61.18%.

Hedge Funds Weigh In On Astec Industries

Several large investors have recently made changes to their positions in ASTE. UBS Group AG grew its stake in Astec Industries by 47.0% during the fourth quarter. UBS Group AG now owns 83,185 shares of the industrial products company's stock valued at $3,604,000 after acquiring an additional 26,588 shares in the last quarter. Easterly Investment Partners LLC increased its holdings in Astec Industries by 115.0% in the 4th quarter. Easterly Investment Partners LLC now owns 192,030 shares of the industrial products company's stock valued at $8,319,000 after acquiring an additional 102,709 shares during the last quarter. Walleye Capital LLC purchased a new stake in Astec Industries in the 1st quarter worth $2,976,000. Assenagon Asset Management S.A. lifted its stake in Astec Industries by 2,165.0% in the 2nd quarter. Assenagon Asset Management S.A. now owns 146,796 shares of the industrial products company's stock worth $8,982,000 after purchasing an additional 140,315 shares in the last quarter. Finally, Caxton Associates LLP bought a new position in shares of Astec Industries during the 1st quarter valued at about $765,000. 93.16% of the stock is currently owned by hedge funds and other institutional investors.

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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