Arcosa (NYSE:ACA) Downgraded to Hold Rating by Texas Capital

Texas Capital downgraded shares of Arcosa (NYSE:ACA) from a strong-buy rating to a hold rating in a research note published on Tuesday morning,Zacks.com reports.

A number of other equities research analysts have also recently commented on ACA. Wall Street Zen raised Arcosa from a “sell” rating to a “hold” rating in a research note on Saturday, May 30th. Zacks Research lowered Arcosa from a “hold” rating to a “strong sell” rating in a research report on Tuesday, April 28th. Oppenheimer began coverage on Arcosa in a research note on Thursday, May 28th. They issued an “outperform” rating and a $150.00 price target for the company. Weiss Ratings lowered shares of Arcosa from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Monday, May 11th. Finally, Barclays boosted their price objective on shares of Arcosa from $115.00 to $140.00 and gave the company an “overweight” rating in a report on Monday, May 4th. Three analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company’s stock. According to data from MarketBeat, the stock presently has an average rating of “Hold” and a consensus target price of $138.33.

Arcosa Stock Performance

Arcosa stock opened at $144.99 on Tuesday. The company has a market cap of $7.12 billion, a PE ratio of 32.01, a PEG ratio of 2.13 and a beta of 1.06. The company has a current ratio of 2.32, a quick ratio of 1.60 and a debt-to-equity ratio of 0.57. Arcosa has a 1 year low of $81.91 and a 1 year high of $146.92. The company’s 50-day moving average is $124.49 and its two-hundred day moving average is $116.70.

Arcosa (NYSE:ACA) last posted its quarterly earnings results on Thursday, April 30th. The company reported $0.51 earnings per share for the quarter, topping analysts’ consensus estimates of $0.13 by $0.38. Arcosa had a net margin of 7.88% and a return on equity of 8.52%. The business had revenue of $571.70 million during the quarter, compared to the consensus estimate of $642.40 million. During the same period in the previous year, the firm posted $0.49 earnings per share. Arcosa’s revenue for the quarter was up 5.0% compared to the same quarter last year. Equities analysts anticipate that Arcosa will post 4.25 earnings per share for the current year.

Arcosa Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Friday, July 31st. Stockholders of record on Wednesday, July 15th will be issued a $0.05 dividend. This represents a $0.20 annualized dividend and a dividend yield of 0.1%. The ex-dividend date is Wednesday, July 15th. Arcosa’s dividend payout ratio is 4.42%.

Institutional Investors Weigh In On Arcosa

Institutional investors have recently added to or reduced their stakes in the stock. Horizon Investments LLC bought a new position in shares of Arcosa in the 4th quarter valued at about $1,925,000. Fisher Asset Management LLC boosted its position in Arcosa by 23.3% during the third quarter. Fisher Asset Management LLC now owns 112,106 shares of the company’s stock valued at $10,505,000 after purchasing an additional 21,181 shares during the last quarter. Capital International Investors grew its stake in Arcosa by 28.3% in the third quarter. Capital International Investors now owns 2,228,275 shares of the company’s stock valued at $208,812,000 after purchasing an additional 491,165 shares in the last quarter. Asset Management One Co. Ltd. bought a new position in Arcosa in the fourth quarter valued at approximately $2,564,000. Finally, Aptus Capital Advisors LLC increased its position in shares of Arcosa by 15.1% during the 3rd quarter. Aptus Capital Advisors LLC now owns 130,520 shares of the company’s stock worth $12,231,000 after purchasing an additional 17,166 shares during the last quarter. 90.66% of the stock is owned by institutional investors.

Arcosa News Roundup

Here are the key news stories impacting Arcosa this week:

• Positive Sentiment: CRH agreed to buy Arcosa, Inc. (ACA) for $150 per share in cash, giving shareholders a sizable premium and likely setting a near-term floor under the stock. CRH to Acquire Arcosa; Leading U.S. Provider of Aggregates and Critical Infrastructure Products for $8.5B
• Positive Sentiment: Market coverage highlighted Arcosa’s shares jumping on the takeover news, reflecting investor enthusiasm for the premium buyout price. Arcosa Stock Rises on $8.5 Billion Acquisition by CRH
• Positive Sentiment: The deal could benefit CRH by expanding its aggregates footprint and infrastructure exposure, which supports the strategic rationale for completing the transaction. Is CRH’s $8.5 Billion Arcosa Acquisition a Game Changer?
• Neutral Sentiment: Several law firms announced investigations into whether Arcosa’s board secured a fair price for shareholders, which could create legal headlines but does not change the announced deal terms yet.
• Neutral Sentiment: One commentary noted the stock looks overvalued after the rally, suggesting upside may be capped near the deal price if no higher bid emerges.

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.