Imperial Capital reaffirmed their buy rating on shares of Construction Partners (NASDAQ:ROAD) in a report issued on Thursday. The firm currently has a $14.00 price target on the stock. Imperial Capital also issued estimates for Construction Partners’ FY2019 earnings at $0.75 EPS and FY2020 earnings at $0.90 EPS.
“We are maintaining our Outperform rating and our one-year price target of $14 on ROAD shares, about 26% above the recent share price. We continue to believe ROAD is likely to generate strong revenue and earnings growth through at least FY20 due to: 1) ROAD’s competitive advantages, including its vertically integrated operations, scale, and strong position in hot mix asphalt (HMA) production; 2) an extensive $575mn backlog; 3) strong growth potential both organically and through its aggressive acquisition strategy; 4) further operational improvements; and 5) healthy returns on capital vs. its peers, which we believe are sustainable. Rationale In its earnings release on 2/11/18, ROAD reported lower than expected 1Q19 results due to weather disruptions while maintaining FY19 guidance.”,” the firm’s analyst wrote.
Several other brokerages also recently weighed in on ROAD. Zacks Investment Research downgraded Construction Partners from a hold rating to a sell rating in a research report on Tuesday, January 29th. Raymond James set a $14.00 target price on Construction Partners and gave the stock a buy rating in a research report on Thursday. ValuEngine downgraded Construction Partners from a hold rating to a sell rating in a research report on Thursday, October 18th. Finally, DA Davidson set a $15.00 target price on Construction Partners and gave the stock a buy rating in a research report on Friday, November 23rd. One research analyst has rated the stock with a sell rating, one has assigned a hold rating and five have given a buy rating to the company. Construction Partners currently has a consensus rating of Buy and an average price target of $14.17.
Construction Partners (NASDAQ:ROAD) last issued its earnings results on Monday, February 11th. The company reported $0.10 earnings per share for the quarter, missing the Thomson Reuters’ consensus estimate of $0.14 by ($0.04). Construction Partners had a return on equity of 13.58% and a net margin of 6.57%. The company had revenue of $154.33 million during the quarter, compared to analysts’ expectations of $170.23 million. Research analysts predict that Construction Partners will post 0.77 EPS for the current fiscal year.
In other Construction Partners news, insider John L. Harper purchased 9,000 shares of Construction Partners stock in a transaction that occurred on Friday, December 14th. The stock was purchased at an average price of $8.41 per share, with a total value of $75,690.00. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Ned N. Fleming III purchased 4,000 shares of Construction Partners stock in a transaction that occurred on Friday, December 21st. The stock was acquired at an average cost of $8.47 per share, with a total value of $33,880.00. The disclosure for this purchase can be found here. Insiders bought 14,500 shares of company stock valued at $122,605 in the last ninety days. Company insiders own 74.79% of the company’s stock.
A number of institutional investors and hedge funds have recently modified their holdings of ROAD. BlackRock Inc. purchased a new position in Construction Partners in the second quarter valued at about $229,000. Raymond James & Associates bought a new position in Construction Partners during the 2nd quarter worth approximately $301,000. Bank of America Corp DE bought a new position in Construction Partners during the 2nd quarter worth approximately $1,841,000. Bank of New York Mellon Corp bought a new position in Construction Partners during the 2nd quarter worth approximately $8,272,000. Finally, Northern Trust Corp bought a new position in Construction Partners during the 2nd quarter worth approximately $1,004,000. 21.10% of the stock is owned by hedge funds and other institutional investors.
Construction Partners Company Profile
Construction Partners, Inc, an infrastructure and road construction company, provides construction products and services to public and private sectors. It offers construction of highways, roads, bridges, airports, and commercial and residential sites. The company provides a range of sitework construction services, including site development, paving, and utility and drainage systems construction, as well as supplies hot mix asphalt required for the projects.
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