Knife River (NYSE:KNF) Sets New 52-Week Low - What's Next?

Key Points

• Knife River shares hit a new 52-week low, falling 3.5% to approximately $50.44, well below the 50-day and 200-day moving averages.
• Analyst sentiment is mixed: the stock carries an average “Hold” rating with an average price target of $78.29, while recent target cuts ranged from $65 to $80.
• The company’s latest quarterly earnings missed expectations, with EPS of $0.77 versus the $1.13 consensus estimate, although revenue rose 12.6% year over year to $938.6 million.

Knife River Corporation (NYSE:KNF - Get Free Report) reached a new 52-week low during trading on Wednesday. The company traded as low as $50.43 and last traded at $50.4390, with a volume of 422705 shares trading hands. The stock had previously closed at $52.68.

Analyst Upgrades and Downgrades

Several research firms have commented on KNF. DA Davidson assumed coverage on Knife River in a research note on Monday, August 24th. They set a "buy" rating and a $85.00 price objective for the company. Oppenheimer lowered their target price on Knife River from $90.00 to $80.00 and set an "outperform" rating on the stock in a research note on Thursday, September 24th. JPMorgan Chase & Co. lowered Knife River from a "neutral" rating to an "underweight" rating and dropped their target price for the company from $80.00 to $73.00 in a report on Wednesday, September 2nd. B. Riley Financial cut their price target on Knife River from $105.00 to $65.00 and set a "buy" rating for the company in a research note on Friday, September 25th. Finally, Wall Street Zen downgraded Knife River from a "hold" rating to a "sell" rating in a report on Saturday, August 8th. One investment analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, two have given a Hold rating and three have given a Sell rating to the company. Based on data from MarketBeat.com, the stock has an average rating of "Hold" and an average target price of $78.29.

Knife River Stock Down 3.5%

The firm has a 50 day moving average of $64.41 and a two-hundred day moving average of $75.85. The company has a current ratio of 2.66, a quick ratio of 1.60 and a debt-to-equity ratio of 1.00. The stock has a market capitalization of $2.88 billion, a PE ratio of 20.76, a P/E/G ratio of 1.24 and a beta of 0.38.

Knife River (NYSE:KNF - Get Free Report) last posted its earnings results on Tuesday, August 4th. The company reported $0.77 earnings per share for the quarter, missing the consensus estimate of $1.13 by ($0.36). Knife River had a net margin of 4.23% and a return on equity of 8.73%. The firm had revenue of $938.59 million during the quarter, compared to analyst estimates of $931.39 million. During the same period last year, the company posted $0.89 EPS. The firm's revenue for the quarter was up 12.6% on a year-over-year basis. Equities research analysts anticipate that Knife River Corporation will post 2.55 earnings per share for the current year.

Hedge Funds Weigh In On Knife River

Hedge funds have recently added to or reduced their stakes in the business. Capital World Investors purchased a new stake in shares of Knife River in the fourth quarter valued at about $71,166,000. Norges Bank acquired a new position in shares of Knife River during the 4th quarter worth approximately $32,753,000. Voss Capital LP raised its position in shares of Knife River by 61.4% during the 4th quarter. Voss Capital LP now owns 710,048 shares of the company's stock worth $49,952,000 after purchasing an additional 270,048 shares during the last quarter. Diamond Hill Capital Management LLC Investment Advisor purchased a new stake in Knife River in the 2nd quarter valued at approximately $21,242,000. Finally, Dimensional Fund Advisors LP lifted its stake in Knife River by 5.2% in the 1st quarter. Dimensional Fund Advisors LP now owns 1,464,690 shares of the company's stock valued at $119,579,000 after buying an additional 73,028 shares in the last quarter. 80.11% of the stock is currently owned by hedge funds and other institutional investors.

About Knife River

Knife River Corporation is a construction materials and contracting company that produces and supplies essential materials for public and private infrastructure projects. Its principal products include construction aggregates, ready-mix concrete and asphalt, along with related paving and contracting services.

The company operates an integrated network of quarries, sand and gravel sites, asphalt and concrete plants, and construction operations. Its services support highways, bridges, airports, commercial developments, residential projects and other infrastructure improvements.

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