Arcosa (NYSE:ACA) Sees Large Volume Increase - Still a Buy?

Key Points

• Arcosa shares rose 1.1% to about $148.98 amid trading volume that was 12% above the prior session.
• Analyst sentiment is mixed, with three Buy ratings and four Holds; the consensus rating is Hold, with a $141.25 price target below the current share price.
• Arcosa missed quarterly expectations, reporting $1.13 EPS versus $1.18 expected and revenue of $658.7 million versus $687.5 million, while revenue declined 10.6% year over year. The company also declared a $0.05 quarterly dividend, yielding approximately 0.1%.

Shares of Arcosa, Inc. (NYSE:ACA - Get Free Report) saw unusually-strong trading volume on Wednesday. 555,843 shares traded hands during mid-day trading, an increase of 12% from the previous session's volume of 496,056 shares. The stock last traded at $148.9760 and had previously closed at $147.45.

Wall Street Analysts Forecast Growth

A number of research analysts recently weighed in on ACA shares. Citigroup lowered shares of Arcosa to a "hold" rating in a research note on Tuesday, June 23rd. Texas Capital lowered Arcosa from a "strong-buy" rating to a "hold" rating in a report on Tuesday, June 23rd. Weiss Ratings raised Arcosa from a "buy (b)" rating to a "buy (b+)" rating in a report on Monday, October 12th. Oppenheimer cut Arcosa from an "outperform" rating to a "market perform" rating in a research report on Friday, June 26th. Finally, Stephens set a $150.00 price objective on Arcosa in a research note on Thursday, August 6th. Three research analysts have rated the stock with a Buy rating and four have given a Hold rating to the stock. According to MarketBeat, Arcosa presently has a consensus rating of "Hold" and a consensus target price of $141.25.

Arcosa Trading Up 1.1%

The firm's 50 day moving average is $145.97 and its 200 day moving average is $136.34. The company has a market cap of $7.32 billion, a PE ratio of 14.93, a PEG ratio of 2.21 and a beta of 1.08. 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 (NYSE:ACA - Get Free Report) last posted its earnings results on Wednesday, August 5th. The company reported $1.13 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.18 by ($0.05). The firm had revenue of $658.70 million during the quarter, compared to analysts' expectations of $687.50 million. Arcosa had a return on equity of 7.90% and a net margin of 17.90%. The business's revenue for the quarter was down 10.6% compared to the same quarter last year. During the same quarter in the prior year, the company earned $1.27 earnings per share. On average, equities analysts anticipate that Arcosa, Inc. will post 4.16 earnings per share for the current year.

Arcosa Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, October 30th. Stockholders of record on Thursday, October 15th will be given a dividend of $0.05 per share. This represents a $0.20 dividend on an annualized basis and a dividend yield of 0.1%. The ex-dividend date is Thursday, October 15th. Arcosa's dividend payout ratio (DPR) is 2.00%.

Institutional Investors Weigh In On Arcosa

A number of institutional investors and hedge funds have recently bought and sold shares of the stock. BlackRock Inc. bought a new position in shares of Arcosa during the second quarter valued at approximately $1,222,486,000. Pentwater Capital Management LP purchased a new stake in Arcosa in the second quarter worth $95,891,000. Bank of New York Mellon Corp bought a new stake in Arcosa in the second quarter valued at $50,804,000. Punch & Associates Investment Management Inc. bought a new stake in Arcosa in the second quarter valued at $50,494,000. Finally, Bank of America Corp DE purchased a new position in Arcosa during the 2nd quarter valued at $38,552,000. 90.66% of the stock is owned by hedge funds and other institutional investors.

About Arcosa

Arcosa, Inc NYSE: ACA is an infrastructure products company headquartered in Dallas, Texas. The company develops and manufactures products used in construction, transportation, utility and communications infrastructure, and renewable energy projects, serving customers primarily in the United States and other North American markets.

Arcosa's Construction Products segment supplies aggregates, construction materials, drainage and stormwater management products, and related infrastructure solutions.

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