BlackRock Inc. Takes $1.22 Billion Position in Arcosa, Inc. $ACA

Key Points

• BlackRock acquired 8.4 million Arcosa shares worth approximately $1.22 billion, giving it a 17.13% stake in the company. Institutional investors and hedge funds collectively own 90.66% of Arcosa.
• Analyst sentiment remains cautious, with a consensus “Hold” rating and an average price target of $141.25, despite Barclays raising its target to $140 and maintaining an “overweight” rating.
• Arcosa’s latest quarter fell short of expectations: earnings were $1.13 per share versus $1.18 expected, while revenue declined 10.6% year over year to $658.7 million.

BlackRock Inc. bought a new position in shares of Arcosa, Inc. (NYSE:ACA - Free Report) in the second quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund bought 8,414,107 shares of the company's stock, valued at approximately $1,222,486,000. BlackRock Inc. owned approximately 17.13% of Arcosa as of its most recent SEC filing.

Several other hedge funds have also recently modified their holdings of the stock. Franklin Resources Inc. boosted its holdings in Arcosa by 2,770.5% in the 4th quarter. Franklin Resources Inc. now owns 736,018 shares of the company's stock worth $78,253,000 after buying an additional 710,377 shares during the last quarter. Norges Bank acquired a new position in shares of Arcosa during the fourth quarter valued at approximately $68,225,000. Bank of New York Mellon Corp acquired a new position in shares of Arcosa during the second quarter valued at approximately $50,804,000. T. Rowe Price Investment Management Inc. lifted its position in shares of Arcosa by 25.1% in the fourth quarter. T. Rowe Price Investment Management Inc. now owns 1,707,884 shares of the company's stock valued at $181,583,000 after acquiring an additional 342,242 shares in the last quarter. Finally, Bank of America Corp DE lifted its position in shares of Arcosa by 80.5% in the second quarter. Bank of America Corp DE now owns 465,140 shares of the company's stock valued at $40,332,000 after acquiring an additional 207,457 shares in the last quarter. Institutional investors and hedge funds own 90.66% of the company's stock.

Analyst Upgrades and Downgrades

ACA has been the subject of several research reports. Barclays boosted their price target on Arcosa from $115.00 to $140.00 and gave the stock an "overweight" rating in a research report on Monday, May 4th. Weiss Ratings restated a "hold (c+)" rating on shares of Arcosa in a report on Friday, August 7th. Texas Capital cut shares of Arcosa from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, June 23rd. Citigroup lowered shares of Arcosa to a "hold" rating in a report on Tuesday, June 23rd. Finally, Wall Street Zen upgraded shares of Arcosa from a "sell" rating to a "hold" rating in a research report on Saturday, May 30th. Two analysts have rated the stock with a Buy rating and five have given a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and an average price target of $141.25.

Arcosa Stock Up 0.1%

Shares of NYSE ACA opened at $145.43 on Friday. The company has a 50 day simple moving average of $143.55 and a 200-day simple moving average of $126.77. The company has a market capitalization of $7.14 billion, a P/E ratio of 14.57, a P/E/G ratio of 2.18 and a beta of 1.05. The company has a debt-to-equity ratio of 0.48, a current ratio of 3.12 and a quick ratio of 2.31. Arcosa, Inc. has a 1 year low of $89.03 and a 1 year high of $146.92.

Arcosa (NYSE:ACA - Get Free Report) last released its quarterly earnings data on Wednesday, August 5th. The company reported $1.13 EPS for the quarter, missing analysts' consensus estimates of $1.18 by ($0.05). The business had revenue of $658.70 million during the quarter, compared to analyst estimates of $687.50 million. Arcosa had a net margin of 17.90% and a return on equity of 7.90%. The company's revenue was down 10.6% on a year-over-year basis. During the same quarter in the prior year, the company posted $1.27 earnings per share. On average, equities research analysts predict that Arcosa, Inc. will post 4.16 earnings per share for the current year.

About Arcosa

Arcosa, Inc NYSE: ACA is a Dallas‐based industrial company that was formed through the spin‐off of Trinity Industries' construction products business in 2018. Since its inception, Arcosa has focused on the manufacture and sale of critical infrastructure components, serving a diverse set of end markets including transportation, construction and energy.

The company's Construction Products segment produces a broad range of highway safety products, such as guardrail systems, sign supports and crash cushions, as well as aggregates and ready‐mix concrete.

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