Construction Partners (NASDAQ:ROAD) Shares Gap Up on Earnings Beat

Construction Partners, Inc. (NASDAQ:ROAD) shares gapped up before the market opened on Friday following a better than expected earnings announcement. The stock had previously closed at $100.16, but opened at $110.20. Construction Partners shares last traded at $117.3350, with a volume of 216,959 shares trading hands.

The company reported $1.08 earnings per share for the quarter, beating the consensus estimate of $1.01 by $0.07. The business had revenue of $999.42 million for the quarter, compared to analysts’ expectations of $948.77 million. Construction Partners had a net margin of 3.90% and a return on equity of 15.22%. The firm’s revenue for the quarter was up 28.2% compared to the same quarter last year. During the same quarter last year, the firm earned $0.81 EPS.

Analysts Set New Price Targets

Several research analysts recently issued reports on the company. Raymond James Financial cut their target price on Construction Partners from $161.00 to $150.00 and set a “strong-buy” rating on the stock in a research report on Wednesday, July 15th. Weiss Ratings cut Construction Partners from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Tuesday, May 26th. Robert W. Baird cut their price objective on shares of Construction Partners from $169.00 to $145.00 and set an “outperform” rating on the stock in a report on Wednesday, July 1st. Truist Financial initiated coverage on shares of Construction Partners in a research note on Wednesday, June 3rd. They issued a “hold” rating and a $130.00 target price for the company. Finally, Zacks Research downgraded shares of Construction Partners from a “strong-buy” rating to a “hold” rating in a report on Thursday, July 16th. One research analyst has rated the stock with a Strong Buy rating, three have given a Buy rating and four have assigned a Hold rating to the company’s stock. According to data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $134.17.

Institutional Trading of Construction Partners

A number of hedge funds have recently bought and sold shares of the business. Artemis Investment Management LLP grew its stake in shares of Construction Partners by 7.8% during the 4th quarter. Artemis Investment Management LLP now owns 708,617 shares of the company’s stock worth $76,920,000 after acquiring an additional 51,052 shares during the period. Bank of New York Mellon Corp increased its holdings in Construction Partners by 3.2% in the 1st quarter. Bank of New York Mellon Corp now owns 579,757 shares of the company’s stock worth $64,423,000 after acquiring an additional 17,851 shares during the last quarter. Comerica Bank raised its stake in Construction Partners by 30.1% in the 4th quarter. Comerica Bank now owns 255,975 shares of the company’s stock valued at $27,786,000 after acquiring an additional 59,244 shares during the period. Allspring Global Investments Holdings LLC lifted its holdings in Construction Partners by 19.3% during 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 last quarter. Finally, 49 Wealth Management LLC purchased a new stake in Construction Partners during the fourth quarter valued at about $3,076,000. 94.83% of the stock is currently owned by institutional investors.

Construction Partners Price Performance

The stock has a market cap of $6.65 billion, a P/E ratio of 51.80, a price-to-earnings-growth ratio of 0.89 and a beta of 0.89. The company has a quick ratio of 1.21, a current ratio of 1.53 and a debt-to-equity ratio of 1.75. The business’s 50-day simple moving average is $109.52 and its two-hundred day simple moving average is $116.51.

Construction Partners Company Profile

Construction Partners, Inc (NASDAQ: ROAD) is a specialty contractor and infrastructure solutions provider focused on road building, paving, site development and aggregate production. The company delivers a comprehensive suite of civil construction services, including roadway paving and milling, site grading and preparation, stormwater and utility installation, and full-scale asphalt plant operations. By integrating materials production with contracting capabilities, the firm aims to streamline project delivery and maintain quality control across its contracting and materials businesses.

At the heart of Construction Partners’ operations are its network of asphalt plants, quarries and aggregate production facilities.