Aecon Group (TSE:ARE) Share Price Crosses Below 50-Day Moving Average - What's Next?

Key Points

• Aecon Group shares fell below their 50-day moving average, trading as low as C$48.57 before closing at C$49.23, while the 50-day average stood at C$49.31.
• Analyst sentiment remains positive overall: six analysts rate the stock Buy and five rate it Hold, producing a “Moderate Buy” consensus and an average price target of C$55.58. Several firms recently raised their targets to between C$61 and C$66.
• The company reported quarterly revenue of C$1.92 billion and earnings of C$0.86 per share, but posted a negative net margin and return on equity. Aecon also maintains a quarterly dividend of C$0.1925, or C$0.77 annually, for a 1.6% yield.

Aecon Group Inc. (TSE:ARE - Get Free Report) shares crossed below its 50 day moving average during trading on Friday. The stock has a 50 day moving average of C$49.31 and traded as low as C$48.57. Aecon Group shares last traded at C$49.23, with a volume of 1,240,233 shares changing hands.

Wall Street Analysts Forecast Growth

Several equities analysts recently issued reports on ARE shares. Desjardins raised their price target on Aecon Group from C$55.00 to C$61.00 and gave the stock a "hold" rating in a research report on Monday, July 6th. Raymond James Financial lifted their price objective on Aecon Group from C$60.00 to C$65.00 and gave the company an "outperform" rating in a research note on Friday. Finally, National Bank Financial boosted their target price on Aecon Group from C$64.00 to C$66.00 and gave the stock an "outperform" rating in a research report on Thursday, October 15th. Six investment analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company. Based on data from MarketBeat.com, Aecon Group currently has a consensus rating of "Moderate Buy" and an average price target of C$55.58.

Aecon Group Stock Performance

The firm has a market cap of C$3.37 billion, a PE ratio of -51.82, a price-to-earnings-growth ratio of 18.18 and a beta of 1.16. The business has a 50 day simple moving average of C$49.31 and a two-hundred day simple moving average of C$45.25. The company has a quick ratio of 1.27, a current ratio of 1.08 and a debt-to-equity ratio of 84.23.

Aecon Group (TSE:ARE - Get Free Report) last announced its quarterly earnings data on Thursday, October 29th. The company reported C$0.86 earnings per share for the quarter. Aecon Group had a negative net margin of 1.10% and a negative return on equity of 6.76%. The company had revenue of C$1.92 billion during the quarter. As a group, equities research analysts forecast that Aecon Group Inc. will post 1.38 earnings per share for the current fiscal year.

Aecon Group Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, October 2nd. Investors of record on Friday, October 2nd were paid a $0.1925 dividend. The ex-dividend date of this dividend was Tuesday, September 22nd. This represents a $0.77 annualized dividend and a yield of 1.6%. Aecon Group's dividend payout ratio is -80.53%.

Insider Buying and Selling at Aecon Group

In other news, Director Scott Stewart bought 4,455 shares of the stock in a transaction on Friday, August 28th. The stock was acquired at an average cost of C$44.89 per share, for a total transaction of C$199,984.95. Following the acquisition, the director owned 24,484 shares of the company's stock, valued at C$1,099,086.76. This represents a 22.24% increase in their ownership of the stock. Also, insider Steven Neil Nackan sold 4,500 shares of the company's stock in a transaction on Thursday, August 27th. The stock was sold at an average price of C$45.55, for a total value of C$204,975.00. Following the completion of the sale, the insider owned 8,035 shares of the company's stock, valued at C$365,994.25. This represents a 35.90% decrease in their ownership of the stock. Insiders have sold a total of 7,500 shares of company stock worth $343,875 over the last 90 days. 0.82% of the stock is currently owned by company insiders.

About Aecon Group

Aecon Group Inc TSX: ARE is a North American construction and infrastructure development company with global experience. Aecon delivers integrated solutions to private and public-sector clients through its Construction segment in the Civil, Urban Transportation, Nuclear, Utility and Industrial sectors, and provides project development, financing, investment, management, and operations and maintenance services through its Concessions segment.

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