Cardinal Infrastructure Group (NASDAQ:CDNL) Trading 7.3% Higher - Here's Why

Key Points

• Cardinal Infrastructure Group shares rose 7.3% to $36.615, although trading volume was 89% below the stock’s average daily volume.
• Analyst sentiment is mixed: the consensus rating is “Hold” with an average price target of $52.33, while recent firms lowered their targets and one reiterated a sell rating.
• The company missed quarterly earnings expectations, reporting $0.26 EPS versus the $0.48 consensus. However, insiders purchased more than 214,000 shares worth approximately $8.3 million over the past 90 days.

Cardinal Infrastructure Group Inc. (NASDAQ:CDNL - Get Free Report)'s share price was up 7.3% on Friday . The stock traded as high as $36.83 and last traded at $36.6150. Approximately 59,792 shares changed hands during mid-day trading, a decline of 89% from the average daily volume of 522,216 shares. The stock had previously closed at $34.11.

Analyst Ratings Changes

Several equities research analysts recently weighed in on CDNL shares. Stifel Nicolaus cut their price objective on shares of Cardinal Infrastructure Group from $63.00 to $52.00 and set a "buy" rating for the company in a research report on Wednesday, August 12th. Oppenheimer reduced their price target on shares of Cardinal Infrastructure Group from $80.00 to $70.00 and set an "outperform" rating on the stock in a research report on Wednesday, August 12th. Weiss Ratings restated a "sell (e+)" rating on shares of Cardinal Infrastructure Group in a research report on Thursday, August 27th. Finally, Zacks Research downgraded Cardinal Infrastructure Group from a "strong-buy" rating to a "hold" rating in a report on Monday, July 13th. Three analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the company presently has a consensus rating of "Hold" and an average price target of $52.33.

Cardinal Infrastructure Group Stock Performance

The company's 50-day simple moving average is $54.15 and its 200-day simple moving average is $52.08. The stock has a market capitalization of $1.73 billion and a price-to-earnings ratio of 65.63. The company has a current ratio of 3.59, a quick ratio of 3.59 and a debt-to-equity ratio of 0.32.

Cardinal Infrastructure Group (NASDAQ:CDNL - Get Free Report) last issued its quarterly earnings results on Tuesday, August 11th. The company reported $0.26 earnings per share for the quarter, missing the consensus estimate of $0.48 by ($0.22). The firm had revenue of $226.93 million during the quarter. On average, analysts expect that Cardinal Infrastructure Group Inc. will post 1.85 EPS for the current year.

Insider Activity

In other Cardinal Infrastructure Group news, Director Ivy Zelman bought 12,647 shares of the firm's stock in a transaction that occurred on Friday, August 14th. The stock was acquired at an average price of $39.61 per share, with a total value of $500,947.67. Following the completion of the purchase, the director directly owned 32,891 shares of the company's stock, valued at approximately $1,302,812.51. This trade represents a 62.47% increase in their position. The purchase was disclosed in a legal filing with the SEC, which is available at this link. Also, COO Benjamin Wood bought 25,700 shares of the stock in a transaction on Friday, August 14th. The stock was acquired at an average price of $39.48 per share, with a total value of $1,014,636.00. Following the completion of the acquisition, the chief operating officer owned 45,700 shares of the company's stock, valued at $1,804,236. This represents a 128.50% increase in their position. The disclosure for this purchase is available in the SEC filing. In the last 90 days, insiders acquired 214,597 shares of company stock worth $8,285,516. 61.70% of the stock is owned by insiders.

Institutional Investors Weigh In On Cardinal Infrastructure Group

Several hedge funds and other institutional investors have recently modified their holdings of the company. Schonfeld Strategic Advisors LLC acquired a new position in Cardinal Infrastructure Group during the 4th quarter valued at about $31,082,000. Ophir Asset Management Pty Ltd purchased a new stake in shares of Cardinal Infrastructure Group in the fourth quarter worth approximately $23,865,000. Wasatch Advisors LP bought a new position in shares of Cardinal Infrastructure Group in the fourth quarter valued at approximately $16,539,000. Adage Capital Partners GP L.L.C. purchased a new position in shares of Cardinal Infrastructure Group during the fourth quarter valued at approximately $14,992,000. Finally, TimesSquare Capital Management LLC bought a new stake in Cardinal Infrastructure Group during the fourth quarter worth $14,612,000.

About Cardinal Infrastructure Group

We provide a comprehensive suite of infrastructure services to the residential, commercial, industrial, municipal, and state infrastructure markets. Our operations leverage a large highly skilled workforce and a fleet of specialized equipment to deliver wet utility installations (water, sewer, and stormwater systems), as well as grading, site clearing, erosion control, drilling and blasting, paving, and other related site services. We are becoming the platform of choice for a diverse array of infrastructure construction projects in our target geographies that require high-level technical expertise and sophistication.

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