Short Interest in Arcosa, Inc. (NYSE:ACA) Grows By 15.6%

Key Points

• Short interest rose 15.6% in April to 1,336,366 shares (about 2.8% of shares outstanding), leaving a days-to-cover ratio of roughly 5.2 days based on average daily volume.
• Quarterly results beat on EPS ($0.51 vs. $0.13 expected) but missed on revenue ($571.7M vs. $642.4M), with revenue up 5% year-over-year and the stock trading above the consensus target.
• Analyst coverage is mixed but leans positive: MarketBeat shows a consensus rating of "Moderate Buy" with a $120 target, while institutional ownership is high at about 90.66%.

Arcosa, Inc. (NYSE:ACA - Get Free Report) was the recipient of a significant increase in short interest during the month of April. As of April 15th, there was short interest totaling 1,336,366 shares, an increase of 15.6% from the March 31st total of 1,156,104 shares. Currently, 2.8% of the shares of the stock are short sold. Based on an average daily volume of 254,756 shares, the days-to-cover ratio is currently 5.2 days.

Hedge Funds Weigh In On Arcosa

Several institutional investors have recently added to or reduced their stakes in ACA. First Horizon Corp acquired a new position in Arcosa in the third quarter valued at $32,000. GHP Investment Advisors Inc. acquired a new position in Arcosa in the first quarter valued at $32,000. Salomon & Ludwin LLC acquired a new position in Arcosa in the third quarter valued at $33,000. Farther Finance Advisors LLC increased its stake in Arcosa by 73.4% in the fourth quarter. Farther Finance Advisors LLC now owns 307 shares of the company's stock valued at $33,000 after purchasing an additional 130 shares during the last quarter. Finally, Bessemer Group Inc. increased its stake in Arcosa by 47.8% in the third quarter. Bessemer Group Inc. now owns 368 shares of the company's stock valued at $35,000 after purchasing an additional 119 shares during the last quarter. 90.66% of the stock is currently owned by institutional investors and hedge funds.

Analyst Ratings Changes

ACA has been the subject of several research reports. DA Davidson lifted their price objective on Arcosa from $120.00 to $125.00 and gave the stock a "buy" rating in a report on Monday, March 2nd. Texas Capital upgraded Arcosa to a "strong-buy" rating in a research report on Friday, March 27th. Wall Street Zen downgraded Arcosa from a "buy" rating to a "hold" rating in a research report on Sunday, March 1st. Zacks Research downgraded Arcosa from a "hold" rating to a "strong sell" rating in a research report on Tuesday. Finally, Weiss Ratings upgraded Arcosa from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Monday. One research analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating and one has given a Sell rating to the stock. According to data from MarketBeat, Arcosa presently has a consensus rating of "Moderate Buy" and a consensus target price of $120.00.

Arcosa Stock Performance

NYSE:ACA opened at $126.63 on Friday. The firm has a 50 day simple moving average of $111.65 and a 200-day simple moving average of $109.26. The company has a debt-to-equity ratio of 0.57, a current ratio of 2.20 and a quick ratio of 1.35. The firm has a market cap of $6.22 billion, a PE ratio of 29.87, a P/E/G ratio of 2.14 and a beta of 0.96. Arcosa has a 1-year low of $80.68 and a 1-year high of $131.00.

Arcosa (NYSE:ACA - Get Free Report) last posted its quarterly earnings data on Thursday, April 30th. The company reported $0.51 earnings per share for the quarter, beating analysts' consensus estimates of $0.13 by $0.38. The business had revenue of $571.70 million during the quarter, compared to analyst estimates of $642.40 million. Arcosa had a net margin of 7.23% and a return on equity of 8.64%. The company's revenue was up 5.0% on a year-over-year basis. During the same quarter in the previous year, the business posted $0.49 earnings per share. On average, equities analysts expect that Arcosa will post 3.4 EPS for the current year.

Arcosa Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Thursday, April 30th. Investors of record on Wednesday, April 15th were paid a $0.05 dividend. This represents a $0.20 annualized dividend and a yield of 0.2%. The ex-dividend date was Wednesday, April 15th. Arcosa's dividend payout ratio is presently 4.72%.

Arcosa Company Profile

Arcosa, Inc NYSE: ACA is a Dallas‐based industrial company that was formed through the spin‐off of Trinity Industries' construction products business in 2018. Since its inception, Arcosa has focused on the manufacture and sale of critical infrastructure components, serving a diverse set of end markets including transportation, construction and energy.

The company's Construction Products segment produces a broad range of highway safety products, such as guardrail systems, sign supports and crash cushions, as well as aggregates and ready‐mix concrete.

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