Cardinal Infrastructure Group (NASDAQ:CDNL) Shares Gap Down on Disappointing Earnings

Key Points

• Cardinal Infrastructure Group shares plunged 28.1% after the company reported quarterly EPS of $0.26, missing the $0.48 consensus estimate by $0.22. The stock opened at $51.08 versus its prior close of $60.00 and later traded near $43.15.
• Analyst sentiment is mixed: three analysts rate the stock a Buy, one rates it Hold, and one rates it Sell. The consensus rating is Hold, with an average price target of $59.33.
• COO Benjamin Wood purchased 20,000 shares for approximately $1.03 million, while insiders collectively own 61.7% of the company. Cardinal has a $1.85 billion market capitalization and a high price-to-earnings ratio of 187.47.

Cardinal Infrastructure Group Inc. (NASDAQ:CDNL - Get Free Report)'s share price gapped down prior to trading on Tuesday following a weaker than expected earnings announcement. The stock had previously closed at $60.00, but opened at $51.08. Cardinal Infrastructure Group shares last traded at $43.1530, with a volume of 577,787 shares changing hands.

The company reported $0.26 EPS for the quarter, missing the consensus estimate of $0.48 by ($0.22). The company had revenue of $226.93 million for the quarter.

Wall Street Analyst Weigh In

Several research firms recently issued reports on CDNL. Stifel Nicolaus increased their price target on shares of Cardinal Infrastructure Group from $41.00 to $63.00 and gave the stock a "buy" rating in a research report on Wednesday, May 13th. Zacks Research cut Cardinal Infrastructure Group from a "strong-buy" rating to a "hold" rating in a research report on Monday, July 13th. Oppenheimer boosted their target price on Cardinal Infrastructure Group from $60.00 to $80.00 and gave the company an "outperform" rating in a research note on Monday, June 15th. Finally, Weiss Ratings raised shares of Cardinal Infrastructure Group from a "sell (e)" rating to a "sell (e+)" rating in a report on Monday, June 1st. Three analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, Cardinal Infrastructure Group currently has an average rating of "Hold" and an average target price of $59.33.

Insider Buying and Selling

In other news, COO Benjamin Wood acquired 20,000 shares of the business's stock in a transaction that occurred on Wednesday, May 27th. The shares were bought at an average cost of $51.30 per share, with a total value of $1,026,000.00. Following the transaction, the chief operating officer owned 20,000 shares of the company's stock, valued at $1,026,000. This trade represents a ∞ increase in their position. The purchase was disclosed in a legal filing with the SEC, which can be accessed through this link. Company insiders own 61.70% of the company's stock.

Institutional Trading of Cardinal Infrastructure Group

Several institutional investors have recently added to or reduced their stakes in the business. Bank of America Corp DE increased its holdings in shares of Cardinal Infrastructure Group by 139.4% in the 1st quarter. Bank of America Corp DE now owns 125,804 shares of the company's stock worth $4,989,000 after purchasing an additional 73,259 shares in the last quarter. California State Teachers Retirement System purchased a new stake in shares of Cardinal Infrastructure Group during the first quarter valued at $28,000. Engle Capital Management L.P. boosted its position in shares of Cardinal Infrastructure Group by 142.7% during the first quarter. Engle Capital Management L.P. now owns 318,000 shares of the company's stock valued at $12,610,000 after buying an additional 187,000 shares during the last quarter. Conversant Capital LLC bought a new stake in Cardinal Infrastructure Group in the 1st quarter worth about $18,702,000. Finally, Granahan Investment Management LLC purchased a new position in Cardinal Infrastructure Group in the 1st quarter worth about $3,270,000.

Cardinal Infrastructure Group Trading Down 28.1%

The company has a debt-to-equity ratio of 0.73, a quick ratio of 1.73 and a current ratio of 1.73. The firm has a market cap of $1.85 billion and a PE ratio of 187.47. The stock has a 50-day simple moving average of $70.49 and a two-hundred day simple moving average of $50.08.

Cardinal Infrastructure Group Company Profile

We provide a comprehensive suite of infrastructure services to the residential, commercial, industrial, municipal, and state infrastructure markets. Our operations leverage a large highly skilled workforce and a fleet of specialized equipment to deliver wet utility installations (water, sewer, and stormwater systems), as well as grading, site clearing, erosion control, drilling and blasting, paving, and other related site services. We are becoming the platform of choice for a diverse array of infrastructure construction projects in our target geographies that require high-level technical expertise and sophistication.

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