Sterling Infrastructure (NASDAQ:STRL) Shares Gap Up - Still a Buy?

Key Points

• Sterling Infrastructure shares jumped: The stock opened at $315 after closing at $289.56 and was reported up 9.9% in trading.
• Quarterly results beat estimates: Sterling reported EPS of $7.58 versus $6.20 expected and revenue of $1.56 billion versus $1.19 billion expected; revenue rose 127% year over year.
• Analyst sentiment is broadly positive: Seven analysts rate the stock Buy and two rate it Hold, giving it a MarketBeat consensus of “Moderate Buy” and an average price target of $709.14.

Sterling Infrastructure, Inc. (NASDAQ:STRL - Get Free Report) gapped up prior to trading on Wednesday. The stock had previously closed at $289.56, but opened at $315.00. Sterling Infrastructure shares last traded at $308.0540, with a volume of 133,732 shares changing hands.

Wall Street Analysts Forecast Growth

Several analysts have issued reports on STRL shares. Zacks Research downgraded Sterling Infrastructure from a "strong-buy" rating to a "hold" rating in a report on Friday, August 7th. KeyCorp raised their target price on shares of Sterling Infrastructure from $754.00 to $755.00 and gave the stock an "overweight" rating in a report on Thursday, October 15th. Wall Street Zen raised shares of Sterling Infrastructure from a "buy" rating to a "strong-buy" rating in a research report on Saturday. JPMorgan Chase & Co. began coverage on shares of Sterling Infrastructure in a research note on Tuesday. They issued an "overweight" rating and a $585.00 price objective for the company. Finally, Weiss Ratings lowered Sterling Infrastructure from a "buy (b-)" rating to a "hold (c+)" rating in a report on Wednesday, September 9th. Seven equities research analysts have rated the stock with a Buy rating and two have given a Hold rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average price target of $709.14.

Sterling Infrastructure Trading Up 9.9%

The company has a market cap of $9.71 billion, a price-to-earnings ratio of 17.72, a PEG ratio of 0.54 and a beta of 1.97. The company has a debt-to-equity ratio of 0.06, a quick ratio of 1.04 and a current ratio of 1.04. The business's 50 day moving average price is $444.80 and its 200-day moving average price is $548.09.

Sterling Infrastructure (NASDAQ:STRL - Get Free Report) last posted its earnings results on Wednesday, October 28th. The construction company reported $7.58 earnings per share for the quarter, beating analysts' consensus estimates of $6.20 by $1.38. The business had revenue of $1.56 billion for the quarter, compared to analysts' expectations of $1.19 billion. Sterling Infrastructure had a net margin of 12.85% and a return on equity of 45.97%. The company's revenue was up 127.0% on a year-over-year basis. On average, research analysts forecast that Sterling Infrastructure, Inc. will post 20.96 EPS for the current year.

Institutional Investors Weigh In On Sterling Infrastructure

A number of institutional investors have recently made changes to their positions in STRL. Wellington Shields & Co. LLC acquired a new position in shares of Sterling Infrastructure during the second quarter worth about $29,000. NFSG Corp grew its position in Sterling Infrastructure by 578.6% in the first quarter. NFSG Corp now owns 95 shares of the construction company's stock valued at $39,000 after purchasing an additional 81 shares in the last quarter. Persistent Asset Partners Ltd bought a new stake in Sterling Infrastructure during the 2nd quarter worth about $40,000. Signature Equity Partners LLC boosted its stake in shares of Sterling Infrastructure by 19.5% during the 1st quarter. Signature Equity Partners LLC now owns 104 shares of the construction company's stock worth $42,000 after buying an additional 17 shares during the last quarter. Finally, Fortitude Family Office LLC boosted its stake in shares of Sterling Infrastructure by 118.6% during the 3rd quarter. Fortitude Family Office LLC now owns 94 shares of the construction company's stock worth $46,000 after buying an additional 51 shares during the last quarter. 80.95% of the stock is owned by institutional investors and hedge funds.

About Sterling Infrastructure

Sterling Infrastructure, Inc. NASDAQ: STRL is a U.S.-based construction company that delivers infrastructure and building services through its E-Infrastructure Solutions, Transportation Solutions and Building Solutions segments. E-Infrastructure Solutions provides site development and related services for data centers, manufacturing facilities, distribution centers and other large-scale projects. Transportation Solutions builds and improves public infrastructure, including roads and bridges, while Building Solutions focuses on concrete foundations and other construction services for residential and commercial customers.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.