Aecon Group (TSE:ARE) Shares Cross Above 200-Day Moving Average - What's Next?

Key Points

• Aecon Group shares moved above their 200-day moving average, reaching C$49.16 before closing at C$47.93. The stock’s 200-day average is C$47.89.
• Analyst sentiment is broadly positive: six analysts rate the stock a Buy and five rate it a Hold, producing a consensus “Moderate Buy” rating and an average price target of C$55.17.
• Aecon reported C$0.33 in quarterly EPS on C$1.63 billion in revenue, but continued to show a negative net margin and return on equity. The company also maintains a quarterly dividend of C$0.1925 per share, equivalent to a 1.6% yield.

Shares of Aecon Group Inc. (TSE:ARE - Get Free Report) crossed above its 200-day moving average during trading on Thursday. The stock has a 200-day moving average of C$47.89 and traded as high as C$49.16. Aecon Group shares last traded at C$47.93, with a volume of 448,107 shares changing hands.

Wall Street Analysts Forecast Growth

Several equities analysts have recently weighed in on the company. Raymond James Financial raised Aecon Group from a "hold" rating to a "moderate buy" rating and lifted their price objective for the company from C$52.00 to C$60.00 in a research note on Friday, July 3rd. Desjardins increased their target price on shares of 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. Stifel Nicolaus upgraded shares of Aecon Group from a "hold" rating to a "buy" rating and lifted their target price for the company from C$46.00 to C$54.00 in a report on Friday, June 26th. TD lowered their target price on Aecon Group from C$62.00 to C$61.00 and set a "buy" rating for the company in a research note on Friday, June 26th. Finally, National Bank Financial raised their target price on Aecon Group from C$64.00 to C$66.00 and gave the company an "outperform" rating in a report on Thursday, October 15th. Six analysts have rated the stock with a Buy rating and five have issued a Hold rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average target price of C$55.17.

Aecon Group Price Performance

The company's 50-day moving average price is C$48.81 and its two-hundred day moving average price is C$47.89. The company has a market cap of C$3.28 billion, a P/E ratio of -50.45, a P/E/G ratio of 18.18 and a beta of 1.16. The company has a current ratio of 1.08, a quick ratio of 1.27 and a debt-to-equity ratio of 84.23.

Aecon Group (TSE:ARE - Get Free Report) last issued its earnings results on Thursday, July 30th. The company reported C$0.33 earnings per share (EPS) for the quarter. Aecon Group had a negative net margin of 1.10% and a negative return on equity of 6.76%. The business had revenue of C$1.63 billion for the quarter. As a group, sell-side analysts expect that Aecon Group Inc. will post 1.38 earnings per share for the current year.

Aecon Group Dividend Announcement

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

Insiders Place Their Bets

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

Aecon Group Company Profile

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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