Construction Partners (NASDAQ:ROAD) Stock Breaks Above 50-Day Moving Average - Here's What Happened

Key Points

• Construction Partners shares broke above their 50-day moving average, reaching $98.23 before closing at $96.61, up 7.6%.
• Analysts maintain a consensus “Moderate Buy” rating with a $132.67 target price, although several firms recently lowered their targets or downgraded ratings.
• The company reported strong quarterly results, with EPS of $1.08 versus $1.01 expected and revenue up 28.2% year over year to $999.42 million. Institutional investors own 94.83% of the stock.

Construction Partners, Inc. (NASDAQ:ROAD - Get Free Report) crossed above its 50-day moving average during trading on Monday. The stock has a 50-day moving average of $93.69 and traded as high as $98.23. Construction Partners shares last traded at $96.61, with a volume of 978,218 shares traded.

Wall Street Analysts Forecast Growth

A number of brokerages recently weighed in on ROAD. Zacks Research downgraded Construction Partners from a "strong-buy" rating to a "hold" rating in a research report on Thursday, July 16th. Robert W. Baird reduced their target price on shares of Construction Partners from $145.00 to $141.00 and set an "outperform" rating for the company in a report on Monday, August 10th. 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. Finally, Raymond James Financial lowered their price target on shares of Construction Partners from $150.00 to $145.00 and set a "strong-buy" rating on the stock in a report on Friday, October 16th. One equities research 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. According to data from MarketBeat.com, Construction Partners has a consensus rating of "Moderate Buy" and a consensus target price of $132.67.

Construction Partners Stock Up 7.6%

The company's fifty day simple moving average is $93.69 and its 200-day simple moving average is $110.83. The firm has a market capitalization of $5.48 billion, a PE ratio of 37.89, a price-to-earnings-growth ratio of 0.63 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 issued its quarterly earnings data on Friday, August 7th. The company reported $1.08 EPS for the quarter, beating the consensus estimate of $1.01 by $0.07. Construction Partners had a return on equity of 16.06% and a net margin of 4.10%. The firm had revenue of $999.42 million during the quarter, compared to analyst estimates of $948.77 million. During the same quarter in the prior year, the business posted $0.81 EPS. The business's revenue for the quarter was up 28.2% compared to the same quarter last year. On average, analysts forecast that Construction Partners, Inc. will post 3.04 EPS for the current year.

Institutional Investors Weigh In On Construction Partners

Several institutional investors have recently added to or reduced their stakes in ROAD. Hollencrest Capital Management acquired a new position in shares of Construction Partners in the 1st quarter valued at $39,000. USA Financial Formulas purchased a new position in Construction Partners in the 3rd quarter worth $40,000. Signaturefd LLC lifted its position in Construction Partners by 78.0% during the 3rd quarter. Signaturefd LLC now owns 470 shares of the company's stock worth $42,000 after acquiring an additional 206 shares during the period. Salomon & Ludwin LLC acquired a new stake in Construction Partners during the 3rd quarter worth about $42,000. Finally, Jones Financial Companies Lllp purchased a new stake in Construction Partners during the 2nd quarter valued at about $63,000. Institutional investors and hedge funds own 94.83% of the company's stock.

About Construction Partners

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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