Construction Partners (NASDAQ:ROAD) Shares Gap Down - What's Next?

Key Points

• Construction Partners shares plunged: ROAD fell from a prior close of $99.24 to open at $86.63, then traded around $80.82.
• Analyst views are mixed, with recent rating downgrades and lower price targets; overall, analysts maintain a Moderate Buy consensus and an average target of $132.67.
• The company’s latest reported quarter beat earnings and revenue estimates, with revenue up 28.2% year over year.

Construction Partners, Inc. (NASDAQ:ROAD - Get Free Report)'s share price gapped down prior to trading on Thursday. The stock had previously closed at $99.24, but opened at $86.63. Construction Partners shares last traded at $80.8160, with a volume of 180,870 shares traded.

Wall Street Analysts Forecast Growth

A number of equities analysts recently issued reports on ROAD shares. Weiss Ratings lowered Construction Partners from a "buy (b-)" rating to a "hold (c+)" rating in a report on Thursday, September 17th. Raymond James Financial cut their price target on Construction Partners from $150.00 to $145.00 and set a "strong-buy" rating for the company in a research note on Friday, October 16th. Robert W. Baird cut their price objective on shares of Construction Partners from $145.00 to $141.00 and set an "outperform" rating for the company in a research report on Monday, August 10th. Finally, Zacks Research cut shares of Construction Partners from a "strong-buy" rating to a "hold" rating in a research note on Thursday, July 16th. One analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating and four have assigned a Hold rating to the company's stock. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $132.67.

Construction Partners Stock Performance

The company has a market capitalization of $4.29 billion, a P/E ratio of 29.72, a P/E/G ratio of 0.72 and a beta of 0.94. 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 stock's 50 day simple moving average is $93.24 and its two-hundred day simple moving average is $110.68.

Construction Partners (NASDAQ:ROAD - Get Free Report) last issued its quarterly earnings results on Friday, August 7th. The company reported $1.08 earnings per share for the quarter, topping the consensus estimate of $1.01 by $0.07. The company had revenue of $999.42 million for the quarter, compared to analysts' expectations of $948.77 million. Construction Partners had a return on equity of 16.06% and a net margin of 4.10%. The firm's revenue for the quarter was up 28.2% on a year-over-year basis. During the same period in the prior year, the firm earned $0.81 earnings per share. As a group, research analysts expect that Construction Partners, Inc. will post 3.04 earnings per share for the current year.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in ROAD. Van Berkom & Associates Inc. grew its holdings in shares of Construction Partners by 45.5% during the third quarter. Van Berkom & Associates Inc. now owns 606,302 shares of the company's stock valued at $54,585,000 after buying an additional 189,576 shares during the last quarter. Summit Creek Advisors LLC raised its holdings in Construction Partners by 6.7% in the 3rd quarter. Summit Creek Advisors LLC now owns 74,831 shares of the company's stock worth $6,737,000 after purchasing an additional 4,701 shares during the period. Kornitzer Capital Management Inc. KS raised its position in shares of Construction Partners by 29.8% during the 3rd quarter. Kornitzer Capital Management Inc. KS now owns 59,756 shares of the company's stock worth $5,380,000 after purchasing an additional 13,730 shares during the last quarter. Kestra Advisory Services LLC raised its holdings in shares of Construction Partners by 47.3% during the third quarter. Kestra Advisory Services LLC now owns 5,788 shares of the company's stock valued at $521,000 after acquiring an additional 1,858 shares during the last quarter. Finally, Covestor Ltd boosted its stake in shares of Construction Partners by 28.3% in the third quarter. Covestor Ltd now owns 798 shares of the company's stock worth $72,000 after acquiring an additional 176 shares during the last quarter. Hedge funds and other institutional investors own 94.83% of the company's stock.

Construction Partners Company Profile

Construction Partners, Inc NASDAQ: ROAD is a civil infrastructure company that builds and maintains transportation and other public infrastructure in the United States. The company primarily serves public-sector customers, including state and local governments, as well as private-sector customers involved in residential, commercial and industrial development.

Its services include asphalt production and paving, roadway construction, milling, maintenance and repair, site development, utility installation and related infrastructure work.

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