Construction Partners (NASDAQ:ROAD) Trading 6.7% Higher - Still a Buy?

Key Points

• Construction Partners (NASDAQ: ROAD) shares rose 6.7% on Wednesday, reaching as high as $104.00 after closing at $97.35 the previous day.
• Analyst sentiment remains constructive overall, with a Moderate Buy consensus and an average price target of $134.17, though ratings are mixed and some firms recently lowered targets.
• The company posted strong quarterly results, beating EPS and revenue expectations with $0.18 EPS on $769.2 million in revenue, while revenue grew 34.6% year over year.

Construction Partners, Inc. (NASDAQ:ROAD - Get Free Report) shares rose 6.7% during trading on Wednesday . The stock traded as high as $104.00 and last traded at $103.8770. Approximately 269,155 shares were traded during mid-day trading, a decline of 54% from the average session volume of 582,848 shares. The stock had previously closed at $97.35.

Wall Street Analyst Weigh In

Several brokerages have weighed in on ROAD. Zacks Research raised Construction Partners from a "hold" rating to a "strong-buy" rating in a research note on Tuesday, July 7th. Robert W. Baird lowered their price objective on Construction Partners from $169.00 to $145.00 and set an "outperform" rating for the company in a research note on Wednesday, July 1st. Weiss Ratings cut Construction Partners from a "buy (b-)" rating to a "hold (c+)" rating in a report on Tuesday, May 26th. Raymond James Financial reissued a "strong-buy" rating and set a $150.00 target price on shares of Construction Partners in a research report on Wednesday. Finally, B. Riley Financial upgraded Construction Partners from a "neutral" rating to a "buy" rating and increased their price target for the company from $117.00 to $135.00 in a report on Thursday, April 2nd. Two equities research analysts have rated the stock with a Strong Buy rating, three have assigned a Buy rating and three have issued a Hold rating to the company's stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $134.17.

Construction Partners Stock Performance

The firm has a market cap of $5.92 billion, a PE ratio of 45.92, a price-to-earnings-growth ratio of 0.78 and a beta of 0.88. The business has a 50 day simple moving average of $115.45 and a two-hundred day simple moving average of $117.54. The company has a quick ratio of 1.21, a current ratio of 1.53 and a debt-to-equity ratio of 1.75.

Construction Partners (NASDAQ:ROAD - Get Free Report) last posted its quarterly 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. Construction Partners had a net margin of 3.90% and a return on equity of 15.22%. The firm had revenue of $769.20 million for the quarter, compared to analysts' expectations of $678.46 million. During the same period in the prior year, the business posted $0.08 earnings per share. The business's revenue for the quarter was up 34.6% on a year-over-year basis. As a group, equities research analysts forecast that Construction Partners, Inc. will post 2.95 earnings per share for the current fiscal year.

Institutional Trading of Construction Partners

Institutional investors and hedge funds have recently modified their holdings of the stock. Morse Asset Management Inc increased its holdings 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 during the period. Danske Bank A S purchased a new stake in shares of Construction Partners in the 3rd quarter worth $38,000. Harbor Investment Advisory LLC bought a new position in shares of Construction Partners during the 1st quarter worth $39,000. Hollencrest Capital Management bought a new position in shares of Construction Partners during the 1st quarter worth $39,000. Finally, Quarry LP bought a new position in shares of Construction Partners during the 3rd quarter worth $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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