Construction Partners (NASDAQ:ROAD) Sets New 12-Month Low - Should You Sell?

Key Points

• Construction Partners fell to a new 52-week low, trading as low as $88.47 and last at $89.66, below its 50-day and 200-day moving averages.
• Despite the share-price weakness, the company reported strong quarterly results: EPS of $1.08 beat estimates by $0.07, revenue reached $999.42 million, and sales grew 28.2% year over year.
• Analysts maintain a consensus “Moderate Buy” rating with an average price target of $133.50, although several firms recently downgraded the stock or reduced their targets.

Construction Partners, Inc. (NASDAQ:ROAD - Get Free Report) hit a new 52-week low during trading on Thursday. The company traded as low as $88.47 and last traded at $89.66, with a volume of 37321 shares trading hands. The stock had previously closed at $90.03.

Wall Street Analysts Forecast Growth

A number of equities analysts have recently commented on ROAD shares. Raymond James Financial reduced their price objective on shares of Construction Partners from $161.00 to $150.00 and set a "strong-buy" rating for the company in a report on Wednesday, July 15th. Truist Financial initiated coverage on shares of Construction Partners in a research note on Wednesday, June 3rd. They set a "hold" rating and a $130.00 price target for the company. Weiss Ratings downgraded Construction Partners from a "buy (b-)" rating to a "hold (c+)" rating in a report on Thursday, September 17th. Zacks Research downgraded Construction Partners from a "strong-buy" rating to a "hold" rating in a research report on Thursday, July 16th. Finally, Robert W. Baird decreased their price target on Construction Partners from $145.00 to $141.00 and set an "outperform" rating on the stock in a research note on Monday, August 10th. One research 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, the company currently has a consensus rating of "Moderate Buy" and an average price target of $133.50.

Construction Partners Stock Up 1.3%

The firm has a 50 day moving average price of $104.71 and a 200-day moving average price of $111.12. The firm has a market cap of $5.18 billion, a price-to-earnings ratio of 35.76, a price-to-earnings-growth ratio of 0.85 and a beta of 0.90. The company has a debt-to-equity ratio of 1.68, a current ratio of 1.57 and a quick ratio of 1.26.

Construction Partners (NASDAQ:ROAD - Get Free Report) last issued its quarterly earnings results on Friday, August 7th. The company reported $1.08 EPS for the quarter, topping 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%. Construction Partners's revenue was up 28.2% on a year-over-year basis. During the same quarter in the previous year, the company earned $0.81 EPS. As a group, equities analysts predict that Construction Partners, Inc. will post 3.04 EPS for the current fiscal year.

Institutional Trading of Construction Partners

A number of institutional investors and hedge funds have recently modified their holdings of the stock. Sequoia Financial Advisors LLC bought a new position in shares of Construction Partners during the 2nd quarter valued at about $242,000. Engineers Gate Manager LP bought a new stake in Construction Partners during the 2nd quarter worth approximately $733,000. Integrated Wealth Concepts LLC bought a new stake in Construction Partners during the 2nd quarter worth approximately $90,000. Nykredit A S acquired a new stake in Construction Partners during the 2nd quarter worth approximately $259,000. Finally, Corient Private Wealth LP raised its holdings in Construction Partners by 69.5% during the 2nd quarter. Corient Private Wealth LP now owns 33,590 shares of the company's stock worth $3,989,000 after buying an additional 13,770 shares during the period. 94.83% of the stock is owned by institutional investors.

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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