Construction Partners (NASDAQ:ROAD) Sets New 1-Year Low - What's Next?

Key Points

• Construction Partners shares fell to a new 52-week low of $87.42, last trading around $86.87 versus a prior close of $93.89. The stock is also below its 50-day and 200-day moving averages.
• Analyst sentiment remains positive overall, with a consensus “Moderate Buy” rating and a $133.50 price target, although several firms recently downgraded their ratings or lowered targets.
• The company exceeded quarterly expectations, reporting $1.08 in earnings per share and $999.42 million in revenue; revenue increased 28.2% year over year. Institutional investors own approximately 94.83% of the stock.

Construction Partners, Inc. (NASDAQ:ROAD - Get Free Report) hit a new 52-week low during mid-day trading on Wednesday. The stock traded as low as $87.42 and last traded at $86.8710, with a volume of 130027 shares trading hands. The stock had previously closed at $93.89.

Wall Street Analysts Forecast Growth

ROAD has been the topic of a number of recent research reports. Zacks Research cut shares of Construction Partners from a "strong-buy" rating to a "hold" rating in a research note on Thursday, July 16th. Weiss Ratings cut Construction Partners from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Thursday, September 17th. Raymond James Financial cut their target price on Construction Partners from $161.00 to $150.00 and set a "strong-buy" rating on the stock in a research note on Wednesday, July 15th. Finally, Robert W. Baird reduced their target price on Construction Partners from $145.00 to $141.00 and set an "outperform" rating on the stock in a report on Monday, August 10th. One investment analyst has rated the stock with a Strong Buy rating, three have given a Buy rating and four have issued a Hold rating to the stock. Based on data from MarketBeat, Construction Partners has a consensus rating of "Moderate Buy" and a consensus price target of $133.50.

Construction Partners Price Performance

The company has a debt-to-equity ratio of 1.68, a quick ratio of 1.26 and a current ratio of 1.57. The firm has a market capitalization of $5.00 billion, a price-to-earnings ratio of 34.52, a price-to-earnings-growth ratio of 0.66 and a beta of 0.93. The company has a 50-day moving average of $103.64 and a 200-day moving average of $110.40.

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

Institutional Trading of Construction Partners

A number of institutional investors have recently made changes to their positions in the business. Bank of New York Mellon Corp bought a new stake in shares of Construction Partners during the 2nd quarter worth approximately $78,248,000. Capital World Investors grew its stake in shares of Construction Partners by 97.5% in the fourth quarter. Capital World Investors now owns 856,696 shares of the company's stock valued at $92,994,000 after buying an additional 423,033 shares in the last quarter. Fifth Third Bancorp increased its holdings in Construction Partners by 30,525.8% during the first quarter. Fifth Third Bancorp now owns 239,800 shares of the company's stock worth $26,647,000 after buying an additional 239,017 shares during the last quarter. First Trust Advisors LP lifted its stake in Construction Partners by 29.6% in the first quarter. First Trust Advisors LP now owns 1,030,378 shares of the company's stock valued at $114,496,000 after acquiring an additional 235,616 shares during the last quarter. Finally, Wasatch Advisors LP increased its stake in shares of Construction Partners by 37.8% during the 1st quarter. Wasatch Advisors LP now owns 836,440 shares of the company's stock worth $92,945,000 after purchasing an additional 229,402 shares during the last quarter. Institutional investors own 94.83% of the company's stock.

About Construction Partners

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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