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

Construction Partners, Inc. (NASDAQ:ROAD) shares gapped up prior to trading on Friday following a stronger than expected earnings report. 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 EPS for the quarter, topping the consensus estimate of $1.01 by $0.07. Construction Partners had a net margin of 3.90% and a return on equity of 15.22%. The company had revenue of $999.42 million during the quarter, compared to the consensus estimate of $948.77 million. During the same period last year, the firm earned $0.81 EPS. Construction Partners’s revenue for the quarter was up 28.2% on a year-over-year basis.

Wall Street Analysts Forecast Growth

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

Institutional Investors Weigh In On Construction Partners

Several large investors have recently added to or reduced their stakes in the business. Morse Asset Management Inc grew its position in Construction Partners by 300.0% during the third quarter. Morse Asset Management Inc now owns 240 shares of the company’s stock worth $30,000 after buying an additional 180 shares in the last quarter. Danske Bank A S purchased a new stake in shares of Construction Partners in the 3rd quarter valued at about $38,000. Harbor Investment Advisory LLC purchased a new stake in shares of Construction Partners in the 1st quarter valued at about $39,000. Hollencrest Capital Management bought a new stake in shares of Construction Partners during the 1st quarter valued at about $39,000. Finally, Quarry LP bought a new stake in shares of Construction Partners during the 3rd quarter valued at about $42,000. Institutional investors own 94.83% of the company’s stock.

Construction Partners Stock Up 17.5%

The company has a debt-to-equity ratio of 1.75, a current ratio of 1.53 and a quick ratio of 1.21. The company has a market cap of $6.65 billion, a PE ratio of 51.80, a price-to-earnings-growth ratio of 0.89 and a beta of 0.89. The company has a fifty day moving average price of $109.52 and a 200 day moving average price of $116.51.

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.