Construction Partners (NASDAQ:ROAD) Shares Gap Up - Time to Buy?

Key Points

• Construction Partners shares gapped up at the open, rising from a prior close of $102.41 to an opening price of $105.76 and last trading around $107.26.
• Recent analyst action has been mostly positive, including upgrades from B. Riley and Zacks; the stock now carries a Moderate Buy consensus with an average price target of $134.17.
• The company posted a strong quarterly report, with EPS of $0.18 beating estimates and revenue of $769.2 million topping forecasts, while revenue grew 34.6% year over year.

Construction Partners, Inc. (NASDAQ:ROAD - Get Free Report)'s share price gapped up before the market opened on Friday . The stock had previously closed at $102.41, but opened at $105.76. Construction Partners shares last traded at $107.2560, with a volume of 577,150 shares changing hands.

Wall Street Analyst Weigh In

A number of research firms have recently weighed in on ROAD. B. Riley Financial raised shares of 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. Raymond James Financial reduced their price objective on shares of Construction Partners from $161.00 to $150.00 and set a "strong-buy" rating on the stock in a research note on Wednesday. Truist Financial began coverage on shares of Construction Partners in a report on Wednesday, June 3rd. They set a "hold" rating and a $130.00 price objective for the company. Zacks Research upgraded shares of Construction Partners from a "hold" rating to a "strong-buy" rating in a research note on Tuesday, July 7th. Finally, Robert W. Baird reduced their price target on shares of Construction Partners from $169.00 to $145.00 and set an "outperform" rating on the stock in a research report on Wednesday, July 1st. Two equities research analysts have rated the stock with a Strong Buy rating, three have assigned a Buy rating and three have given a Hold rating to the company. According to data from MarketBeat.com, Construction Partners currently has an average rating of "Moderate Buy" and a consensus target price of $134.17.

Construction Partners Stock Performance

The stock's 50-day moving average price is $114.25 and its 200-day moving average price is $117.41. The company has a current ratio of 1.53, a quick ratio of 1.21 and a debt-to-equity ratio of 1.75. The company has a market capitalization of $6.01 billion, a P/E ratio of 46.67, a P/E/G ratio of 0.87 and a beta of 0.88.

Construction Partners (NASDAQ:ROAD - Get Free Report) last released its quarterly earnings data on Friday, May 8th. The company reported $0.18 earnings per share for the quarter, topping the consensus estimate of ($0.05) by $0.23. The firm had revenue of $769.20 million for 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%. Construction Partners's quarterly revenue was up 34.6% on a year-over-year basis. During the same quarter in the prior year, the business earned $0.08 earnings per share. As a group, equities analysts expect that Construction Partners, Inc. will post 2.95 EPS for the current year.

Hedge Funds Weigh In On Construction Partners

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the business. Morse Asset Management Inc raised 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 valued at $30,000 after acquiring an additional 180 shares in the last quarter. Danske Bank A S bought a new position in shares of Construction Partners in the third quarter worth $38,000. Harbor Investment Advisory LLC acquired a new position in shares of Construction Partners during the first quarter valued at $39,000. Hollencrest Capital Management acquired a new position in shares of Construction Partners during the first quarter valued at $39,000. Finally, Quarry LP bought a new stake in shares of Construction Partners during the third quarter valued at about $42,000. 94.83% of the stock is owned by institutional investors.

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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