Construction Partners (NASDAQ:ROAD) Downgraded to Hold Rating by Zacks Research

Key Points

• Zacks Research downgraded Construction Partners (NASDAQ:ROAD) from strong-buy to hold, adding to a mixed set of Wall Street opinions on the stock.
• Despite the downgrade, the company’s latest quarter was solid: EPS of $0.18 beat estimates, and revenue of $769.2 million topped forecasts with 34.6% year-over-year growth.
• The stock traded up 2.0% to $104.47, while analysts currently maintain a Moderate Buy consensus and an average price target of $134.17.

Construction Partners (NASDAQ:ROAD - Get Free Report) was downgraded by analysts at Zacks Research from a "strong-buy" rating to a "hold" rating in a research report issued to clients and investors on Thursday,Zacks.com reports.

Other research analysts have also issued reports about the company. B. Riley Financial upgraded Construction Partners from a "neutral" rating to a "buy" rating and raised their price target for the stock from $117.00 to $135.00 in a research report on Thursday, April 2nd. Weiss Ratings lowered Construction Partners from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Tuesday, May 26th. Raymond James Financial reduced their target price on Construction Partners from $161.00 to $150.00 and set a "strong-buy" rating on the stock in a report on Wednesday. Robert W. Baird decreased their target price on Construction Partners from $169.00 to $145.00 and set an "outperform" rating for the company in a research report on Wednesday, July 1st. Finally, Truist Financial assumed coverage on Construction Partners in a research note on Wednesday, June 3rd. They issued a "hold" rating and a $130.00 price target for the company. One analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating and four have given a Hold rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $134.17.

Construction Partners Trading Up 2.0%

Shares of NASDAQ ROAD opened at $104.47 on Thursday. The company's 50 day simple moving average is $113.53 and its 200 day simple moving average is $117.32. Construction Partners has a fifty-two week low of $93.22 and a fifty-two week high of $151.00. The firm has a market capitalization of $5.91 billion, a P/E ratio of 45.82, a P/E/G ratio of 0.86 and a beta of 0.88. The company has a debt-to-equity ratio of 1.75, a current ratio of 1.53 and a quick ratio of 1.21.

Construction Partners (NASDAQ:ROAD - Get Free Report) last released its earnings results on Friday, May 8th. The company reported $0.18 EPS for the quarter, topping analysts' consensus estimates of ($0.05) by $0.23. The firm had revenue of $769.20 million during the quarter, compared to analyst estimates of $678.46 million. Construction Partners had a net margin of 3.90% and a return on equity of 15.22%. The business's quarterly revenue was up 34.6% compared to the same quarter last year. During the same quarter in the previous year, the business earned $0.08 EPS. On average, analysts predict that Construction Partners will post 2.91 EPS for the current year.

Hedge Funds Weigh In On Construction Partners

Institutional investors have recently modified their holdings of the business. Morse Asset Management Inc increased its stake in Construction Partners by 300.0% during the 3rd quarter. Morse Asset Management Inc now owns 240 shares of the company's stock worth $30,000 after purchasing an additional 180 shares in the last quarter. Danske Bank A S acquired a new stake in Construction Partners during the 3rd quarter worth approximately $38,000. Harbor Investment Advisory LLC bought a new position in Construction Partners in the first quarter valued at approximately $39,000. Hollencrest Capital Management bought a new position in Construction Partners in the first quarter valued at approximately $39,000. Finally, Quarry LP acquired a new position in shares of Construction Partners in the third quarter valued at approximately $42,000. Institutional investors own 94.83% of the company's stock.

Construction Partners Company Profile

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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