Hsbc Holdings PLC Reduces Holdings in Arcosa, Inc. $ACA

Key Points

• HSBC Holdings PLC cut its Arcosa stake by 81.4% in the first quarter, selling 14,490 shares and retaining 3,313 shares valued at approximately $350,000.
• Institutional ownership remains high at 90.66%, with several major investors—including Franklin Resources, Norges Bank and T. Rowe Price—recently increasing or initiating positions.
• Analyst sentiment is broadly neutral, with an average “Hold” rating and a $138.33 target price. Arcosa recently beat quarterly EPS estimates, while reporting revenue below expectations, and declared a $0.05 quarterly dividend.

Hsbc Holdings PLC decreased its stake in shares of Arcosa, Inc. (NYSE:ACA - Free Report) by 81.4% during the first quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor owned 3,313 shares of the company's stock after selling 14,490 shares during the period. Hsbc Holdings PLC's holdings in Arcosa were worth $350,000 as of its most recent SEC filing.

Other hedge funds and other institutional investors also recently modified their holdings of the company. Franklin Resources Inc. lifted its holdings in Arcosa by 2,770.5% in the fourth 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 period. Norges Bank bought a new stake in Arcosa during the 4th quarter valued at approximately $68,225,000. T. Rowe Price Investment Management Inc. grew its holdings in shares of Arcosa by 25.1% during the 4th quarter. T. Rowe Price Investment Management Inc. now owns 1,707,884 shares of the company's stock worth $181,583,000 after acquiring an additional 342,242 shares during the period. Bank of America Corp DE grew its holdings in shares of Arcosa by 80.5% during the 2nd quarter. Bank of America Corp DE now owns 465,140 shares of the company's stock worth $40,332,000 after acquiring an additional 207,457 shares during the period. Finally, The Manufacturers Life Insurance Company raised its position in shares of Arcosa by 25.3% in the 2nd quarter. The Manufacturers Life Insurance Company now owns 763,557 shares of the company's stock worth $66,208,000 after acquiring an additional 154,172 shares in the last quarter. Hedge funds and other institutional investors own 90.66% of the company's stock.

Analyst Ratings Changes

ACA has been the subject of a number of research analyst reports. Oppenheimer cut Arcosa from an "outperform" rating to a "market perform" rating in a research note on Friday, June 26th. Barclays increased their price objective on Arcosa from $115.00 to $140.00 and gave the stock an "overweight" rating in a report on Monday, May 4th. Zacks Research raised Arcosa from a "strong sell" rating to a "hold" rating in a research report on Monday, June 22nd. Citigroup lowered Arcosa to a "hold" rating in a research report on Tuesday, June 23rd. Finally, Wall Street Zen raised 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. According to data from MarketBeat.com, the company currently has an average rating of "Hold" and an average target price of $138.33.

Arcosa Stock Performance

Shares of Arcosa stock opened at $145.39 on Friday. Arcosa, Inc. has a 1 year low of $81.91 and a 1 year high of $146.92. The firm's 50-day moving average is $137.85 and its 200 day moving average is $123.64. The stock has a market cap of $7.14 billion, a price-to-earnings ratio of 32.09, a PEG ratio of 2.14 and a beta of 1.04. The company has a debt-to-equity ratio of 0.57, a current ratio of 2.32 and a quick ratio of 1.60.

Arcosa (NYSE:ACA - Get Free Report) last issued its earnings results on Thursday, April 30th. The company reported $0.51 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.13 by $0.38. The business had revenue of $571.70 million during the quarter, compared to analysts' expectations of $642.40 million. Arcosa had a net margin of 7.88% and a return on equity of 8.52%. The business's revenue for the quarter was up 5.0% compared to the same quarter last year. During the same period in the previous year, the company earned $0.49 earnings per share. Sell-side analysts anticipate that Arcosa, Inc. will post 4.25 EPS for the current fiscal year.

Arcosa Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Friday, July 31st. Investors of record on Wednesday, July 15th were given a dividend of $0.05 per share. The ex-dividend date of this dividend was Wednesday, July 15th. This represents a $0.20 annualized dividend and a dividend yield of 0.1%. Arcosa's dividend payout ratio (DPR) is 4.42%.

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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