Construction Partners (NASDAQ:ROAD) Shares Down 6.8% - Here's Why

Key Points

• Construction Partners' shares declined by 6.8% on Wednesday, trading as low as $116.22 before closing at $115.43, with a total trading volume down 12% from the average.
• Despite the recent drop, analysts from Zacks and Raymond James have upgraded the stock to a "strong-buy" rating, reflecting positive sentiment, while the company has an average price target of $112.33.
• The latest earnings report revealed that Construction Partners missed EPS estimates by $0.06, reporting $0.81 per share against expectations of $0.87, although revenue increased by 50.5% year-over-year.

Shares of Construction Partners, Inc. (NASDAQ:ROAD - Get Free Report) dropped 6.8% on Wednesday . The company traded as low as $116.22 and last traded at $115.43. Approximately 470,302 shares traded hands during trading, a decline of 12% from the average daily volume of 537,394 shares. The stock had previously closed at $123.83.

Wall Street Analysts Forecast Growth

A number of equities analysts recently weighed in on the stock. Zacks Research upgraded shares of Construction Partners from a "hold" rating to a "strong-buy" rating in a research report on Monday, October 6th. Raymond James Financial reiterated 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 report on Friday, August 8th. Weiss Ratings reiterated a "hold (c+)" rating on shares of Construction Partners in a research report on Wednesday, October 8th. Finally, Baird R W upgraded shares of Construction Partners from a "hold" rating to a "strong-buy" rating in a research report on Friday, August 8th. Three equities research analysts have rated the stock with a Strong Buy rating, one has given a Buy rating and two have given a Hold rating to the company's stock. Based on data from MarketBeat, Construction Partners presently has an average rating of "Buy" and an average price target of $112.33.

Construction Partners Stock Down 6.3%

The company has a current ratio of 1.47, a quick ratio of 1.20 and a debt-to-equity ratio of 1.63. The stock has a market cap of $6.51 billion, a price-to-earnings ratio of 84.67, a P/E/G ratio of 1.07 and a beta of 0.98. The firm's 50 day moving average is $121.24 and its two-hundred day moving average is $104.59.

Construction Partners (NASDAQ:ROAD - Get Free Report) last announced 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 during the quarter, compared to analyst estimates of $810.47 million. During the same period in the previous year, the company earned $0.59 earnings per share. The business's revenue for the quarter was up 50.5% on a year-over-year basis. Construction Partners has set its FY 2025 guidance at EPS. On average, sell-side analysts predict that Construction Partners, Inc. will post 1.96 EPS for the current year.

Institutional Investors Weigh In On Construction Partners

A number of hedge funds and other institutional investors have recently made changes to their positions in the company. Wealth Enhancement Advisory Services LLC bought a new stake in shares of Construction Partners in the 2nd quarter worth approximately $344,000. GAMMA Investing LLC raised its position in Construction Partners by 33.6% in the 2nd quarter. GAMMA Investing LLC now owns 1,164 shares of the company's stock valued at $124,000 after purchasing an additional 293 shares during the last quarter. Teacher Retirement System of Texas bought a new position in Construction Partners in the 1st quarter valued at $491,000. QRG Capital Management Inc. bought a new position in Construction Partners in the 2nd quarter valued at $266,000. Finally, Asset Management One Co. Ltd. raised its position in Construction Partners by 15.5% in the 1st quarter. Asset Management One Co. Ltd. now owns 76,119 shares of the company's stock valued at $5,471,000 after purchasing an additional 10,226 shares during the last quarter. 94.83% of the stock is owned by hedge funds and other institutional investors.

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.

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