Construction Partners (NASDAQ:ROAD) Shares Gap Down Following Weak Earnings

Construction Partners, Inc. (NASDAQ:ROAD)’s share price gapped down before the market opened on Thursday following a dissappointing earnings announcement. The stock had previously closed at $104.19, but opened at $100.15. Construction Partners shares last traded at $101.7350, with a volume of 176,795 shares changing hands.

The company reported $1.07 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.11 by ($0.04). The company had revenue of $899.85 million for the quarter, compared to the consensus estimate of $896.17 million. Construction Partners had a return on equity of 14.80% and a net margin of 3.62%.Construction Partners’s revenue for the quarter was up 67.2% compared to the same quarter last year. During the same period last year, the company earned $0.56 EPS.

Wall Street Analyst Weigh In

ROAD has been the subject of several recent research reports. Raymond James Financial restated a “strong-buy” rating and set a $135.00 price objective (up previously from $120.00) on shares of Construction Partners in a report on Tuesday, October 21st. DA Davidson reissued a “neutral” rating and issued a $120.00 price target on shares of Construction Partners in a research report on Friday. Weiss Ratings restated a “hold (c)” rating on shares of Construction Partners in a report on Tuesday. Bank of America dropped their price objective on shares of Construction Partners from $120.00 to $115.00 and set a “buy” rating on the stock in a research note on Friday. Finally, Baird R W upgraded shares of Construction Partners from a “hold” rating to a “strong-buy” rating in a report on Friday, August 8th. Two investment analysts have rated the stock with a Strong Buy rating, two have assigned a Buy rating and three have assigned a Hold rating to the company. According to MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus price target of $123.50.

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in ROAD. TD Waterhouse Canada Inc. bought a new stake in Construction Partners during the third quarter valued at $25,000. AlphaQuest LLC boosted its position in shares of Construction Partners by 292.5% during the 3rd quarter. AlphaQuest LLC now owns 208 shares of the company’s stock valued at $26,000 after acquiring an additional 155 shares during the last quarter. Caitong International Asset Management Co. Ltd grew its holdings in shares of Construction Partners by 2,750.0% during the second quarter. Caitong International Asset Management Co. Ltd now owns 285 shares of the company’s stock worth $30,000 after purchasing an additional 275 shares in the last quarter. Morse Asset Management Inc increased its position in shares of Construction Partners by 300.0% in the third quarter. Morse Asset Management Inc now owns 240 shares of the company’s stock worth $30,000 after purchasing an additional 180 shares during the last quarter. Finally, Danske Bank A S bought a new position in shares of Construction Partners in the third quarter worth approximately $38,000. Institutional investors own 94.83% of the company’s stock.

Construction Partners Price Performance

The firm has a market capitalization of $5.67 billion, a PE ratio of 55.28, a P/E/G ratio of 0.89 and a beta of 1.02. The company has a debt-to-equity ratio of 1.63, a current ratio of 1.47 and a quick ratio of 1.20. The business’s 50 day moving average is $118.76 and its two-hundred day moving average is $111.32.

About Construction Partners

Construction Partners, Inc, a civil infrastructure company, constructs and maintains roadways in Alabama, Florida, Georgia, North Carolina, South Carolina, and Tennessee. The company provides various products and services to public and private infrastructure projects, such as highways, roads, bridges, airports, and commercial and residential developments.