Astec Industries (NASDAQ:ASTE) Shares Up 4.2% - Here's What Happened

Key Points

• Astec shares rose 4.2% to about $39, though trading volume was 94% below its average.
• Astec agreed to sell its Roadtec and Carlson businesses to Komatsu for an enterprise value of $75 million. The company expects about $65 million in cash proceeds and a roughly 200-basis-point improvement in adjusted EBITDA margin, but the deal would also remove a business generating about $145 million in annual revenue; closing is expected in Q1 2027.
• Recent results and analyst updates were negative: quarterly EPS of -$0.01 missed the $0.47 consensus, revenue also fell short, and Sidoti cut its 2026 EPS forecast while Zacks Research downgraded the stock to “strong sell.”

Shares of Astec Industries, Inc. (NASDAQ:ASTE - Get Free Report) traded up 4.2% during trading on Thursday. The company traded as high as $39.05 and last traded at $39.0430. 12,369 shares were traded during trading, a decline of 94% from the average daily volume of 224,404 shares. The stock had previously closed at $37.48.

More Astec Industries News

Here's some of the latest news about ASTE:

• Positive Sentiment: Astec agreed to sell its Roadtec and Carlson road-equipment businesses to Komatsu for an enterprise value of $75 million. The business has been generating operating losses, so Astec expects the divestiture to be accretive to annualized EPS and lift adjusted EBITDA margin by about 200 basis points. The company expects roughly $65 million in cash proceeds and tax benefits to support its balance sheet and investment in core businesses. Astec announces Roadtec sale agreement
• Neutral Sentiment: The deal is expected to close in the first quarter of 2027 and remains subject to customary conditions, leaving time for delays or non-completion. Roadtec generates approximately $145 million in annualized revenue, so investors will also weigh the loss of that business against the expected profitability and margin benefits.
• Negative Sentiment: Recent analyst developments point to earnings concerns: Sidoti lowered its 2026 EPS forecast to $2.58 from $3.35 and cut its Q4 estimate to $1.11 from $1.37. Zacks Research also downgraded ASTE from “hold” to “strong sell.” Zacks Research rating information

Wall Street Analysts Forecast Growth

A number of research analysts recently weighed in on the stock. Zacks Research lowered shares of Astec Industries from a "hold" rating to a "strong sell" rating in a research note on Monday. Weiss Ratings restated a "hold (c)" rating on shares of Astec Industries in a research report on Monday, November 2nd. Finally, Freedom Broker cut their price target on Astec Industries from $60.00 to $52.00 and set a "buy" rating for the company in a report on Monday. Two research analysts have rated the stock with a Strong Buy rating, one has issued a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $52.00.

Astec Industries Stock Up 2.9%

The stock has a fifty day simple moving average of $40.06 and a two-hundred day simple moving average of $50.20. The firm has a market cap of $888.65 million, a PE ratio of 77.13, a price-to-earnings-growth ratio of 1.30 and a beta of 1.37. The company has a current ratio of 2.31, a quick ratio of 0.97 and a debt-to-equity ratio of 0.51.

Astec Industries (NASDAQ:ASTE - Get Free Report) last released its quarterly earnings data on Thursday, November 5th. The industrial products company reported ($0.01) EPS for the quarter, missing analysts' consensus estimates of $0.47 by ($0.48). The firm had revenue of $352.40 million during the quarter, compared to the consensus estimate of $375.47 million. Astec Industries had a net margin of 0.74% and a return on equity of 8.60%. During the same quarter last year, the business posted ($0.18) earnings per share. As a group, sell-side analysts expect that Astec Industries, Inc. will post 2.58 EPS for the current fiscal year.

Astec Industries Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, December 4th. Stockholders of record on Monday, November 16th will be given a dividend of $0.13 per share. This represents a $0.52 dividend on an annualized basis and a dividend yield of 1.3%. The ex-dividend date is Monday, November 16th. Astec Industries's payout ratio is 104.00%.

Institutional Investors Weigh In On Astec Industries

A number of institutional investors and hedge funds have recently made changes to their positions in the business. Legal & General Group Plc purchased a new position in Astec Industries during the second quarter worth about $2,997,000. BlackRock Inc. bought a new position in Astec Industries in the 2nd quarter worth about $212,732,000. Connor Clark & Lunn Investment Management Ltd. purchased a new stake in shares of Astec Industries in the 2nd quarter valued at about $6,075,000. Bank of America Corp DE purchased a new stake in shares of Astec Industries in the 2nd quarter valued at about $3,293,000. Finally, Corient Private Wealth LP bought a new stake in shares of Astec Industries during the 2nd quarter valued at about $2,334,000. Hedge funds and other institutional investors own 93.16% of the company's stock.

About Astec Industries

Astec Industries is a manufacturer of equipment and services for the infrastructure, road construction and aggregate industries. Its products support the production and handling of asphalt, concrete and crushed stone, as well as the construction and maintenance of roads. The company's offerings include asphalt production plants, roadbuilding equipment, crushers, screens, material washing systems and concrete batch plants. Astec also provides parts, service and other support for its equipment. Founded in 1972 and headquartered in Chattanooga, Tennessee, Astec serves customers in the United States and international markets.

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