Construction Partners (NASDAQ:ROAD) Reaches New 1-Year Low - Here's Why

Key Points

• Construction Partners shares fell to a new 52-week low, trading as low as $85.22, well below their 50-day and 200-day moving averages.
• Analysts have recently reduced price targets and downgraded ratings, though the stock retains a “Moderate Buy” consensus and an average target of $133.50.
• The company delivered stronger-than-expected quarterly results, with EPS of $1.08 and revenue of $999.42 million, up 28.2% year over year.

Shares of Construction Partners, Inc. (NASDAQ:ROAD - Get Free Report) reached a new 52-week low during mid-day trading on Tuesday. The stock traded as low as $85.22 and last traded at $85.5790, with a volume of 113,234 shares trading hands. The stock had previously closed at $86.18.

Analyst Ratings Changes

Several equities research analysts recently commented on the company. Raymond James Financial decreased their target price on Construction Partners from $161.00 to $150.00 and set a "strong-buy" rating for the company in a research note on Wednesday, July 15th. Zacks Research lowered Construction Partners from a "strong-buy" rating to a "hold" rating in a research report on Thursday, July 16th. Robert W. Baird dropped their price target on shares of Construction Partners from $145.00 to $141.00 and set an "outperform" rating on the stock in a research report on Monday, August 10th. Finally, Weiss Ratings lowered shares of Construction Partners from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Thursday, September 17th. One research analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating and four have issued a Hold rating to the company's stock. According to MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average price target of $133.50.

Construction Partners Stock Performance

The company has a debt-to-equity ratio of 1.68, a current ratio of 1.57 and a quick ratio of 1.26. The company has a market capitalization of $4.86 billion, a PE ratio of 33.60, a PEG ratio of 0.63 and a beta of 0.93. The company has a 50 day moving average of $102.30 and a two-hundred day moving average of $109.76.

Construction Partners (NASDAQ:ROAD - Get Free Report) last issued its earnings results on Friday, August 7th. The company reported $1.08 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.01 by $0.07. Construction Partners had a net margin of 4.10% and a return on equity of 16.06%. The firm had revenue of $999.42 million for the quarter, compared to the consensus estimate of $948.77 million. During the same quarter in the prior year, the firm posted $0.81 earnings per share. The business's revenue was up 28.2% on a year-over-year basis. As a group, equities research analysts predict that Construction Partners, Inc. will post 3.08 earnings per share for the current year.

Institutional Investors Weigh In On Construction Partners

A number of institutional investors and hedge funds have recently bought and sold shares of ROAD. GAMMA Investing LLC raised its position in Construction Partners by 99.6% in the third quarter. GAMMA Investing LLC now owns 7,632 shares of the company's stock worth $687,000 after acquiring an additional 3,808 shares during the period. Sequoia Financial Advisors LLC purchased a new stake in Construction Partners in the second quarter worth $242,000. Engineers Gate Manager LP purchased a new position in Construction Partners in the 2nd quarter worth about $733,000. Integrated Wealth Concepts LLC purchased a new stake in shares of Construction Partners in the 2nd quarter worth $90,000. Finally, Nykredit A S purchased a new position in Construction Partners during the 2nd quarter valued at about $259,000. 94.83% of the stock is owned by institutional investors.

Construction Partners Company Profile

Construction Partners, Inc NASDAQ: ROAD is a vertically integrated civil infrastructure company that builds and maintains transportation infrastructure in the southeastern United States. The company serves public and private-sector customers, including state and local governments, commercial developers, and other contractors.

Its primary activities include the production and sale of hot-mix asphalt, aggregate production, asphalt paving, grading, site development, and road construction.

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