Construction Partners (NASDAQ:ROAD) Shares Gap Up Following Better-Than-Expected Earnings

Construction Partners, Inc. (NASDAQ:ROAD)’s stock price gapped up prior to trading on Friday following a better than expected earnings announcement. The stock had previously closed at $131.36, but opened at $142.76. Construction Partners shares last traded at $147.5330, with a volume of 288,448 shares traded.

The company reported $0.18 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of ($0.05) by $0.23. Construction Partners had a return on equity of 15.26% and a net margin of 3.99%.The business had revenue of $769.20 million during the quarter, compared to the consensus estimate of $678.46 million. During the same period in the prior year, the business posted $0.08 EPS. The company’s revenue for the quarter was up 34.6% on a year-over-year basis.

Analyst Upgrades and Downgrades

Several brokerages recently weighed in on ROAD. Raymond James Financial reissued a “strong-buy” rating and issued a $140.00 target price on shares of Construction Partners in a research note on Monday, April 27th. Zacks Research cut Construction Partners from a “strong-buy” rating to a “hold” rating in a report on Monday, April 27th. DA Davidson raised their price objective on Construction Partners from $120.00 to $130.00 and gave the stock a “neutral” rating in a report on Friday, February 6th. Weiss Ratings upgraded Construction Partners from a “hold (c+)” rating to a “buy (b-)” rating in a report on Tuesday, April 21st. Finally, B. Riley Financial upgraded Construction Partners from a “neutral” rating to a “buy” rating and raised their price objective for the stock from $117.00 to $135.00 in a report on Thursday, April 2nd. One research analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating and two have issued a Hold rating to the company. Based on data from MarketBeat, Construction Partners presently has an average rating of “Moderate Buy” and an average price target of $132.40.

Institutional Inflows and Outflows

Several large investors have recently made changes to their positions in the company. Geneva Capital Management LLC raised its position in shares of Construction Partners by 0.3% in the 4th quarter. Geneva Capital Management LLC now owns 1,821,134 shares of the company’s stock worth $197,684,000 after buying an additional 6,163 shares during the period. Invesco Ltd. increased its holdings in Construction Partners by 23.7% in the 4th quarter. Invesco Ltd. now owns 1,481,914 shares of the company’s stock valued at $160,862,000 after purchasing an additional 284,082 shares in the last quarter. Geode Capital Management LLC increased its holdings in Construction Partners by 0.4% in the 4th quarter. Geode Capital Management LLC now owns 1,163,923 shares of the company’s stock valued at $126,364,000 after purchasing an additional 4,118 shares in the last quarter. State Street Corp increased its holdings in Construction Partners by 4.7% in the 2nd quarter. State Street Corp now owns 1,112,231 shares of the company’s stock valued at $118,208,000 after purchasing an additional 49,898 shares in the last quarter. Finally, First Trust Advisors LP increased its holdings in Construction Partners by 33.2% in the 3rd quarter. First Trust Advisors LP now owns 1,059,566 shares of the company’s stock valued at $134,565,000 after purchasing an additional 264,069 shares in the last quarter. 94.83% of the stock is owned by hedge funds and other institutional investors.

Construction Partners Trading Up 12.1%

The company has a current ratio of 1.59, a quick ratio of 1.26 and a debt-to-equity ratio of 1.76. The business’s 50-day simple moving average is $119.17 and its two-hundred day simple moving average is $115.97. The company has a market capitalization of $8.32 billion, a PE ratio of 67.00, a PEG ratio of 1.20 and a beta of 0.92.

About Construction Partners

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.