Aecon Group Inc. (TSE:ARE) Stock Now Rated "Moderate Buy" by Sell-Side Analysts

Key Points

• Analyst consensus is “Moderate Buy”: Six of 11 brokerages rate Aecon Group a buy, while five recommend holding the stock. The average 12-month price target is C$55.17, above the reported C$47.42 share price.
• Insider activity was mixed: An insider sold 4,500 shares for approximately C$204,975, while a director purchased 4,455 shares for nearly C$200,000. Insiders collectively own 0.82% of the company.
• Recent financial results remain challenging: Aecon reported C$0.33 in quarterly EPS on C$1.63 billion in revenue, alongside a negative net margin and return on equity. The company pays a quarterly dividend of C$0.1925, equivalent to a 1.6% annual yield.

Shares of Aecon Group Inc. (TSE:ARE - Get Free Report) have been given an average recommendation of "Moderate Buy" by the eleven brokerages that are covering the firm, Marketbeat.com reports. Five research analysts have rated the stock with a hold recommendation and six have given a buy recommendation to the company. The average 12-month price objective among brokers that have updated their coverage on the stock in the last year is C$55.17.

A number of equities research analysts have commented on ARE shares. Raymond James Financial raised shares of Aecon Group from a "hold" rating to a "moderate buy" rating and lifted their target price for the stock from C$52.00 to C$60.00 in a research report on Friday, July 3rd. Desjardins upped their price objective on Aecon Group from C$55.00 to C$61.00 and gave the company a "hold" rating in a research report on Monday, July 6th. National Bank Financial increased their target price on Aecon Group from C$64.00 to C$66.00 and gave the company an "outperform" rating in a report on Thursday, October 15th. Finally, Canaccord Genuity Group raised their target price on Aecon Group from C$56.00 to C$57.00 and gave the stock a "buy" rating in a research report on Monday, June 29th.

Insider Activity at Aecon Group

In related news, insider Steven Neil Nackan sold 4,500 shares of the firm's stock in a transaction that occurred on Thursday, August 27th. The shares were sold at an average price of C$45.55, for a total value of C$204,975.00. Following the transaction, the insider owned 8,035 shares of the company's stock, valued at approximately C$365,994.25. This trade represents a 35.90% decrease in their ownership of the stock. Also, Director Scott Stewart acquired 4,455 shares of the company's stock in a transaction that occurred on Friday, August 28th. The stock was acquired at an average cost of C$44.89 per share, for a total transaction of C$199,984.95. Following the acquisition, the director owned 24,484 shares of the company's stock, valued at C$1,099,086.76. The trade was a 22.24% increase in their position. Insiders sold a total of 7,500 shares of company stock worth $343,875 in the last quarter. Company insiders own 0.82% of the company's stock.

Aecon Group Price Performance

ARE opened at C$47.42 on Friday. The stock has a 50-day moving average price of C$48.83 and a 200-day moving average price of C$47.89. The firm has a market cap of C$3.25 billion, a PE ratio of -49.92, a P/E/G ratio of 18.18 and a beta of 1.16. Aecon Group has a 1 year low of C$25.05 and a 1 year high of C$59.96. The company has a debt-to-equity ratio of 84.23, a current ratio of 1.08 and a quick ratio of 1.27.

Aecon Group (TSE:ARE - Get Free Report) last posted its quarterly earnings results on Thursday, July 30th. The company reported C$0.33 EPS for the quarter. Aecon Group had a negative net margin of 1.10% and a negative return on equity of 6.76%. The firm had revenue of C$1.63 billion for the quarter. Sell-side analysts predict that Aecon Group will post 1.38 earnings per share for the current fiscal year.

Aecon Group Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Friday, October 2nd. Stockholders of record on Friday, October 2nd were paid a $0.1925 dividend. This represents a $0.77 annualized dividend and a dividend yield of 1.6%. The ex-dividend date was Tuesday, September 22nd. Aecon Group's dividend payout ratio is -80.53%.

Aecon Group Company Profile

Aecon Group Inc TSX: ARE is a North American construction and infrastructure development company with global experience. Aecon delivers integrated solutions to private and public-sector clients through its Construction segment in the Civil, Urban Transportation, Nuclear, Utility and Industrial sectors, and provides project development, financing, investment, management, and operations and maintenance services through its Concessions segment.

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