Construction Partners (NASDAQ:ROAD) Sets New 12-Month Low – Should You Sell?

Construction Partners, Inc. (NASDAQ:ROAD) hit a new 52-week low on Thursday. The company traded as low as $88.47 and last traded at $89.66, with a volume of 37321 shares. The stock had previously closed at $90.03.

Wall Street Analyst Weigh In

Several research firms have issued reports on ROAD. Raymond James Financial dropped their price target on Construction Partners from $161.00 to $150.00 and set a “strong-buy” rating on the stock in a research note on Wednesday, July 15th. Zacks Research downgraded Construction Partners from a “strong-buy” rating to a “hold” rating in a report on Thursday, July 16th. Robert W. Baird dropped their target price on Construction Partners from $145.00 to $141.00 and set an “outperform” rating on the stock in a research report on Monday, August 10th. Truist Financial started coverage on Construction Partners in a research note on Wednesday, June 3rd. They issued a “hold” rating and a $130.00 target price on the stock. Finally, Weiss Ratings downgraded Construction Partners from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Thursday, September 17th. One analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating and four have issued a Hold rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average price target of $133.50.

Construction Partners Price Performance

The company has a market cap of $5.18 billion, a P/E ratio of 35.76, a PEG ratio of 0.85 and a beta of 0.90. The company has a fifty day moving average price of $104.71 and a two-hundred day moving average price of $111.12. The company has a debt-to-equity ratio of 1.68, a quick ratio of 1.26 and a current ratio of 1.57.

Construction Partners (NASDAQ:ROAD) last announced its quarterly earnings results on Friday, August 7th. The company reported $1.08 EPS for the quarter, beating analysts’ consensus estimates of $1.01 by $0.07. The firm had revenue of $999.42 million during the quarter, compared to analysts’ expectations of $948.77 million. Construction Partners had a net margin of 4.10% and a return on equity of 16.06%. The company’s revenue for the quarter was up 28.2% compared to the same quarter last year. During the same quarter last year, the company posted $0.81 earnings per share. On average, sell-side analysts anticipate that Construction Partners, Inc. will post 3.04 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently made changes to their positions in ROAD. Bank of New York Mellon Corp bought a new position in shares of Construction Partners during the second quarter valued at $78,248,000. Capital World Investors grew its stake in shares of Construction Partners by 97.5% in the fourth quarter. Capital World Investors now owns 856,696 shares of the company’s stock worth $92,994,000 after purchasing an additional 423,033 shares during the last quarter. Fifth Third Bancorp grew its stake in shares of Construction Partners by 30,525.8% in the first quarter. Fifth Third Bancorp now owns 239,800 shares of the company’s stock worth $26,647,000 after purchasing an additional 239,017 shares during the last quarter. First Trust Advisors LP increased its holdings in Construction Partners by 29.6% in the first quarter. First Trust Advisors LP now owns 1,030,378 shares of the company’s stock valued at $114,496,000 after purchasing an additional 235,616 shares during the period. Finally, Wasatch Advisors LP increased its holdings in Construction Partners by 37.8% in the first quarter. Wasatch Advisors LP now owns 836,440 shares of the company’s stock valued at $92,945,000 after purchasing an additional 229,402 shares during the period. Institutional investors and hedge funds own 94.83% of the company’s stock.

About Construction Partners

Construction Partners, Inc (NASDAQ:ROAD) is a vertically integrated civil infrastructure company that builds and maintains transportation infrastructure in the southeastern United States. The company serves public and private-sector customers, including state and local governments, commercial developers, and other contractors.

Its primary activities include the production and sale of hot-mix asphalt, aggregate production, asphalt paving, grading, site development, and road construction.