Construction Partners (NASDAQ:ROAD) Reaches New 1-Year High on Analyst Upgrade

Key Points

• Construction Partners' shares hit a new 52-week high of $115.63 following an upgrade from Baird R W from a hold to a strong-buy rating.
• The stock has a consensus rating of Buy from analysts, with a target price of $101.00 and recent reports indicating strong interest from institutional investors.
• Despite having a net margin of 3.04% and missing EPS estimates, the company's revenue rose 50.5% year-over-year to $779.28 million for the reported quarter.

Shares of Construction Partners, Inc. (NASDAQ:ROAD - Get Free Report) hit a new 52-week high during mid-day trading on Monday after Baird R W upgraded the stock from a hold rating to a strong-buy rating. The stock traded as high as $115.63 and last traded at $115.18, with a volume of 88048 shares trading hands. The stock had previously closed at $112.22.

A number of other research analysts also recently issued reports on ROAD. Raymond James Financial restated a "strong-buy" rating on shares of Construction Partners in a research report on Friday, August 8th. Robert W. Baird set a $122.00 price objective on shares of Construction Partners and gave the company an "outperform" rating in a research note on Friday, August 8th.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in ROAD. Vanguard Group Inc. boosted its holdings in shares of Construction Partners by 5.0% in the first quarter. Vanguard Group Inc. now owns 3,666,331 shares of the company's stock worth $263,499,000 after buying an additional 173,963 shares during the period. Kayne Anderson Rudnick Investment Management LLC lifted its stake in Construction Partners by 0.5% in the first quarter. Kayne Anderson Rudnick Investment Management LLC now owns 2,592,079 shares of the company's stock valued at $186,293,000 after acquiring an additional 12,808 shares during the last quarter. Invesco Ltd. raised its position in shares of Construction Partners by 4.2% in the second quarter. Invesco Ltd. now owns 1,308,761 shares of the company's stock valued at $139,095,000 after purchasing an additional 52,670 shares during the period. Geode Capital Management LLC increased its position in Construction Partners by 1.6% during the second quarter. Geode Capital Management LLC now owns 1,153,123 shares of the company's stock worth $122,568,000 after acquiring an additional 18,229 shares during the period. Finally, Bank of America Corp DE increased its position in Construction Partners by 2.6% during the fourth quarter. Bank of America Corp DE now owns 1,119,051 shares of the company's stock worth $98,991,000 after acquiring an additional 28,723 shares during the period. 94.83% of the stock is currently owned by institutional investors.

Construction Partners Price Performance

The company's fifty day simple moving average is $105.25 and its 200-day simple moving average is $90.44. The company has a current ratio of 1.47, a quick ratio of 1.13 and a debt-to-equity ratio of 1.63. The stock has a market cap of $6.03 billion, a P/E ratio of 78.52, a price-to-earnings-growth ratio of 1.44 and a beta of 1.00.

Construction Partners (NASDAQ:ROAD - Get Free Report) last released its earnings results on Thursday, August 7th. The company reported $0.81 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.87 by ($0.06). Construction Partners had a net margin of 3.04% and a return on equity of 12.24%. The business had revenue of $779.28 million for the quarter, compared to analyst estimates of $810.47 million. During the same quarter in the previous year, the company posted $0.59 earnings per share. The business's revenue for the quarter was up 50.5% on a year-over-year basis. As a group, sell-side analysts forecast that Construction Partners, Inc. will post 1.96 EPS for the current year.

Construction Partners Company Profile

Construction Partners, Inc, a civil infrastructure company, constructs and maintains roadways in Alabama, Florida, Georgia, North Carolina, South Carolina, and Tennessee. The company provides various products and services to public and private infrastructure projects, such as highways, roads, bridges, airports, and commercial and residential developments.