Construction Partners, Inc. (NASDAQ:ROAD) Receives Average Recommendation of "Moderate Buy" from Brokerages

Key Points

• Analyst sentiment remains positive: Construction Partners has an average “Moderate Buy” rating from eight analysts, with an average 12-month price target of $133.50 versus its recent price of $110.10.
• Quarterly results exceeded expectations: The company reported $1.08 in EPS and $999.42 million in revenue, beating consensus estimates while revenue increased 28.2% year over year.
• Institutional ownership is substantial: Institutional investors own 94.83% of the stock, with several major funds recently increasing their positions.

Shares of Construction Partners, Inc. (NASDAQ:ROAD - Get Free Report) have earned an average recommendation of "Moderate Buy" from the eight ratings firms that are currently covering the firm, MarketBeat reports. Three analysts have rated the stock with a hold rating, four have given a buy rating and one has issued a strong buy rating on the company. The average 1 year target price among brokers that have issued ratings on the stock in the last year is $133.50.

Several analysts have recently commented on the stock. Weiss Ratings upgraded shares of Construction Partners from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Tuesday, August 11th. Raymond James Financial dropped their target price on shares of Construction Partners from $161.00 to $150.00 and set a "strong-buy" rating for the company in a report on Wednesday, July 15th. Zacks Research lowered Construction Partners from a "strong-buy" rating to a "hold" rating in a research note on Thursday, July 16th. Truist Financial assumed coverage on Construction Partners in a report on Wednesday, June 3rd. They set a "hold" rating and a $130.00 price target on the stock. Finally, Robert W. Baird lowered their price objective on Construction Partners from $145.00 to $141.00 and set an "outperform" rating on the stock in a research report on Monday, August 10th.

Construction Partners Trading Down 4.1%

Shares of NASDAQ:ROAD opened at $110.10 on Friday. The stock has a 50 day moving average of $110.09 and a 200 day moving average of $116.61. The company has a market cap of $6.25 billion, a PE ratio of 43.18, a price-to-earnings-growth ratio of 1.07 and a beta of 0.89. The company has a current ratio of 1.57, a quick ratio of 1.26 and a debt-to-equity ratio of 1.68. Construction Partners has a 12-month low of $93.42 and a 12-month high of $151.00.

Construction Partners (NASDAQ:ROAD - Get Free Report) last released its earnings results on Friday, August 7th. The company reported $1.08 EPS for the quarter, topping analysts' consensus estimates of $1.01 by $0.07. Construction Partners had a net margin of 4.10% and a return on equity of 16.06%. The company had revenue of $999.42 million for the quarter, compared to analysts' expectations of $948.77 million. During the same quarter last year, the business earned $0.81 EPS. The firm's revenue was up 28.2% compared to the same quarter last year. As a group, equities research analysts expect that Construction Partners will post 3.02 EPS for the current year.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in ROAD. California State Teachers Retirement System raised its position in shares of Construction Partners by 11,651.6% during the second quarter. California State Teachers Retirement System now owns 6,577,601 shares of the company's stock valued at $781,222,000 after buying an additional 6,521,629 shares during the last quarter. Geneva Capital Management LLC increased its holdings in Construction Partners by 0.3% in the 4th quarter. Geneva Capital Management LLC now owns 1,821,134 shares of the company's stock valued at $197,684,000 after acquiring an additional 6,163 shares during the last quarter. Invesco Ltd. increased its holdings in Construction Partners by 23.7% in the 4th quarter. Invesco Ltd. now owns 1,481,914 shares of the company's stock valued at $160,862,000 after acquiring an additional 284,082 shares during the last quarter. Geode Capital Management LLC lifted its stake in Construction Partners by 0.4% in the 4th quarter. Geode Capital Management LLC now owns 1,163,923 shares of the company's stock worth $126,364,000 after purchasing an additional 4,118 shares in the last quarter. Finally, State Street Corp lifted its stake in Construction Partners by 4.7% in the 2nd quarter. State Street Corp now owns 1,112,231 shares of the company's stock worth $118,208,000 after purchasing an additional 49,898 shares in the last quarter. 94.83% of the stock is currently owned by institutional investors.

About Construction Partners

Construction Partners, Inc NASDAQ: ROAD is a specialty contractor and infrastructure solutions provider focused on road building, paving, site development and aggregate production. The company delivers a comprehensive suite of civil construction services, including roadway paving and milling, site grading and preparation, stormwater and utility installation, and full-scale asphalt plant operations. By integrating materials production with contracting capabilities, the firm aims to streamline project delivery and maintain quality control across its contracting and materials businesses.

At the heart of Construction Partners' operations are its network of asphalt plants, quarries and aggregate production facilities.

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