Construction Partners (NASDAQ:ROAD) Trading Up 10.3% - Here's What Happened

Key Points

• Shares rose 10.3% intraday to $123.72 (high $123.68) on Friday, with roughly 242,957 shares traded—about 55% below the stock's average daily volume.
• Construction Partners beat expectations with $0.47 EPS vs. $0.31 est. and $809.47M revenue vs. $740.14M est., posting 44.1% YoY revenue growth, while multiple analysts upgraded ratings and raised targets (consensus target $131.40).
• Major institutional buying has accelerated—Capital World Investors, Invesco, Goldman Sachs and others increased stakes—and institutional ownership is very high at 94.83%.

Shares of Construction Partners, Inc. (NASDAQ:ROAD - Get Free Report) were up 10.3% during trading on Friday . The company traded as high as $123.68 and last traded at $123.72. Approximately 242,957 shares traded hands during mid-day trading, a decline of 55% from the average daily volume of 535,937 shares. The stock had previously closed at $112.15.

Analyst Ratings Changes

A number of equities analysts have recently commented on ROAD shares. Zacks Research upgraded shares of Construction Partners from a "strong sell" rating to a "strong-buy" rating in a research report on Thursday, January 29th. B. Riley Financial upgraded shares of Construction Partners from a "neutral" rating to a "buy" rating and lifted their target price for the company from $117.00 to $135.00 in a research report on Thursday, April 2nd. Robert W. Baird set a $142.00 target price on shares of Construction Partners in a research report on Friday, February 6th. Weiss Ratings reiterated a "hold (c+)" rating on shares of Construction Partners in a research report on Monday, December 29th. Finally, DA Davidson lifted their target price on shares of Construction Partners from $120.00 to $130.00 and gave the company a "neutral" rating in a research report on Friday, February 6th. Two investment analysts have rated the stock with a Strong Buy rating, three have given a Buy rating and two have assigned a Hold rating to the company's stock. According to MarketBeat, the company currently has a consensus rating of "Buy" and a consensus price target of $131.40.

Construction Partners Trading Up 12.0%

The stock has a market capitalization of $7.10 billion, a P/E ratio of 57.11, a price-to-earnings-growth ratio of 0.99 and a beta of 0.92. The company has a current ratio of 1.59, a quick ratio of 1.26 and a debt-to-equity ratio of 1.76. The stock's fifty day moving average price is $121.21 and its two-hundred day moving average price is $115.93.

Construction Partners (NASDAQ:ROAD - Get Free Report) last announced its quarterly earnings data on Thursday, February 5th. The company reported $0.47 earnings per share for the quarter, topping analysts' consensus estimates of $0.31 by $0.16. The firm had revenue of $809.47 million during the quarter, compared to analyst estimates of $740.14 million. Construction Partners had a net margin of 3.99% and a return on equity of 15.26%. The business's quarterly revenue was up 44.1% on a year-over-year basis. During the same period in the previous year, the business posted $0.25 EPS. Equities research analysts forecast that Construction Partners, Inc. will post 1.96 EPS for the current year.

Institutional Investors Weigh In On Construction Partners

Hedge funds have recently made changes to their positions in the business. Capital World Investors increased its stake in shares of Construction Partners by 97.5% in the fourth quarter. Capital World Investors now owns 856,696 shares of the company's stock worth $92,994,000 after buying an additional 423,033 shares during the period. Vaughan Nelson Investment Management L.P. purchased a new position in shares of Construction Partners in the fourth quarter worth $42,518,000. Invesco Ltd. increased its stake in shares of Construction Partners by 23.7% in the fourth quarter. Invesco Ltd. now owns 1,481,914 shares of the company's stock worth $160,862,000 after buying an additional 284,082 shares during the period. First Trust Advisors LP increased its stake in shares of Construction Partners by 33.2% in the third quarter. First Trust Advisors LP now owns 1,059,566 shares of the company's stock worth $134,565,000 after buying an additional 264,069 shares during the period. Finally, Goldman Sachs Group Inc. increased its stake in shares of Construction Partners by 176.9% in the fourth quarter. Goldman Sachs Group Inc. now owns 361,837 shares of the company's stock worth $39,277,000 after buying an additional 231,160 shares during the period. 94.83% of the stock is currently 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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