Construction Partners (NASDAQ:ROAD) Shares Up 8.4% - What's Next?

Key Points

• Construction Partners shares jumped 8.4% to $91.44, although trading volume was about 85% below the average session volume.
• Analyst sentiment remains cautiously positive: the stock has a “Moderate Buy” consensus rating and a $132.67 average price target, despite recent downgrades and reduced price targets.
• The company exceeded quarterly expectations, reporting $1.08 in EPS versus $1.01 expected and $999.42 million in revenue, up 28.2% year over year; institutional investors own 94.83% of its shares.

Construction Partners, Inc. (NASDAQ:ROAD - Get Free Report) rose 8.4% during trading on Thursday. The company traded as high as $89.99 and last traded at $91.44. Approximately 97,807 shares were traded during mid-day trading, a decline of 85% from the average session volume of 663,103 shares. The stock had previously closed at $84.36.

Analyst Ratings Changes

ROAD has been the subject of several recent research reports. Zacks Research downgraded shares of Construction Partners from a "strong-buy" rating to a "hold" rating in a research note on Thursday, July 16th. Weiss Ratings downgraded Construction Partners from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Thursday, September 17th. Robert W. Baird decreased their price objective on 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, Raymond James Financial decreased their price objective on Construction Partners from $150.00 to $145.00 and set a "strong-buy" rating for the company in a research report on Friday, October 16th. One investment analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating and four have given a Hold rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $132.67.

Construction Partners Stock Performance

The stock's 50-day moving average is $94.95 and its 200 day moving average is $111.18. The stock has a market cap of $5.23 billion, a price-to-earnings ratio of 35.99, a P/E/G ratio of 0.62 and a beta of 0.93. 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 released 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. 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 quarterly revenue was up 28.2% on a year-over-year basis. During the same quarter in the previous year, the firm posted $0.81 EPS. As a group, analysts predict that Construction Partners, Inc. will post 3.04 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the business. First Trust Advisors LP boosted its position in shares of Construction Partners by 29.6% during the 1st quarter. First Trust Advisors LP now owns 1,030,378 shares of the company's stock worth $114,496,000 after purchasing an additional 235,616 shares in the last quarter. Wasatch Advisors LP lifted its stake in shares of Construction Partners by 20.6% in the second quarter. Wasatch Advisors LP now owns 1,008,474 shares of the company's stock valued at $119,776,000 after purchasing an additional 172,034 shares during the period. Allspring Global Investments Holdings LLC lifted its stake in shares of Construction Partners by 19.3% in the first quarter. Allspring Global Investments Holdings LLC now owns 967,350 shares of the company's stock valued at $109,214,000 after purchasing an additional 156,469 shares during the period. Bank of New York Mellon Corp purchased a new stake in Construction Partners during the second quarter worth about $78,248,000. Finally, Dimensional Fund Advisors LP boosted its holdings in Construction Partners by 11.1% during the first quarter. Dimensional Fund Advisors LP now owns 587,477 shares of the company's stock worth $65,271,000 after buying an additional 58,908 shares in 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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