Arcosa (NYSE:ACA) Sets New 12-Month High - Should You Buy?

Key Points

• Arcosa shares reached a new 52-week high of $147.13, above the analyst consensus price target of $141.25. Despite three Buy ratings, four analysts rate the stock Hold, leaving the overall consensus at Hold.
• The company’s latest quarter fell short of expectations, with EPS of $1.13 versus $1.18 expected and revenue of $658.7 million versus $687.5 million forecast; revenue declined 10.6% year over year.
• Arcosa declared a quarterly dividend of $0.05 per share, equal to a 0.1% yield, while institutional investors own a substantial 90.66% of the company’s stock.

Arcosa, Inc. (NYSE:ACA - Get Free Report)'s share price hit a new 52-week high during trading on Friday. The company traded as high as $147.13 and last traded at $147.04, with a volume of 219486 shares trading hands. The stock had previously closed at $146.50.

Wall Street Analyst Weigh In

Several analysts recently weighed in on ACA shares. Citigroup cut shares of Arcosa to a "hold" rating in a report on Tuesday, June 23rd. Stephens set a $150.00 target price on shares of Arcosa in a research note on Thursday, August 6th. Texas Capital downgraded shares of Arcosa from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, June 23rd. Weiss Ratings upgraded shares of Arcosa from a "hold (c+)" rating to a "buy (b)" rating in a report on Friday, August 21st. Finally, Oppenheimer cut Arcosa from an "outperform" rating to a "market perform" rating in a research report on Friday, June 26th. Three equities research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of "Hold" and an average target price of $141.25.

Arcosa Stock Performance

The company has a debt-to-equity ratio of 0.48, a quick ratio of 2.31 and a current ratio of 3.12. The business's 50-day moving average is $145.64 and its 200-day moving average is $133.97. The company has a market capitalization of $7.22 billion, a PE ratio of 14.73, a PEG ratio of 2.20 and a beta of 1.08.

Arcosa (NYSE:ACA - Get Free Report) last released 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 business had revenue of $658.70 million for the quarter, compared to analysts' expectations of $687.50 million. Arcosa had a net margin of 17.90% and a return on equity of 7.90%. Arcosa's revenue for the quarter was down 10.6% on a year-over-year basis. During the same quarter in the previous year, the business posted $1.27 earnings per share. On average, research analysts anticipate that Arcosa, Inc. will post 4.16 earnings per share for the current year.

Arcosa Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, October 30th. Investors of record on Thursday, October 15th will be given a dividend of $0.05 per share. This represents a $0.20 annualized dividend and a yield of 0.1%. The ex-dividend date of this dividend is Thursday, October 15th. Arcosa's dividend payout ratio is 2.00%.

Hedge Funds Weigh In On Arcosa

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Castleark Management LLC raised its holdings in Arcosa by 53.9% during the first quarter. Castleark Management LLC now owns 74,650 shares of the company's stock valued at $7,923,000 after acquiring an additional 26,150 shares during the period. Deutsche Bank AG bought a new stake in shares of Arcosa in the second quarter worth about $9,137,000. Pentwater Capital Management LP purchased a new stake in shares of Arcosa during the 2nd quarter worth approximately $95,891,000. Mitsubishi UFJ Asset Management Co. Ltd. purchased a new position in shares of Arcosa in the second quarter valued at $1,055,000. Finally, Greenland Capital Management LP purchased a new stake in Arcosa during the second quarter valued at $1,453,000. 90.66% of the stock is owned by institutional investors.

About Arcosa

Arcosa, Inc NYSE: ACA is an infrastructure products company that manufactures and sells products used in construction, utility and energy infrastructure, and transportation markets. The company serves contractors, utilities, infrastructure developers, original equipment manufacturers, and other industrial customers.

Arcosa's Construction Products segment provides aggregates and specialty materials, concrete products, drainage and related infrastructure products, and other solutions used in commercial, residential, transportation, and industrial construction.

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