Construction Partners (NASDAQ:ROAD) Shares Gap Up – Still a Buy?

Construction Partners, Inc. (NASDAQ:ROAD)’s stock price gapped up before the market opened on Friday . The stock had previously closed at $102.41, but opened at $105.76. Construction Partners shares last traded at $107.2560, with a volume of 577,150 shares changing hands.

Analyst Upgrades and Downgrades

ROAD has been the topic of a number of recent analyst reports. Raymond James Financial decreased their target price on shares of Construction Partners from $161.00 to $150.00 and set a “strong-buy” rating on the stock in a research note on Wednesday. Zacks Research cut Construction Partners from a “strong-buy” rating to a “hold” rating in a report on Thursday. Robert W. Baird reduced their price target on shares of Construction Partners from $169.00 to $145.00 and set an “outperform” rating on the stock in a research report on Wednesday, July 1st. Truist Financial assumed coverage on Construction Partners in a research note on Wednesday, June 3rd. They issued a “hold” rating and a $130.00 price objective for the company. Finally, B. Riley Financial raised shares of Construction Partners from a “neutral” rating to a “buy” rating and lifted their price target for the stock from $117.00 to $135.00 in a research note on Thursday, April 2nd. One equities research analyst has rated the stock with a Strong Buy rating, three have given a Buy rating and four have assigned a Hold rating to the company’s stock. According to MarketBeat.com, Construction Partners presently has a consensus rating of “Moderate Buy” and an average target price of $134.17.

Construction Partners Price Performance

The company has a market cap of $5.91 billion, a PE ratio of 45.82, a price-to-earnings-growth ratio of 0.88 and a beta of 0.88. The company has a quick ratio of 1.21, a current ratio of 1.53 and a debt-to-equity ratio of 1.75. The firm has a 50 day simple moving average of $113.53 and a 200-day simple moving average of $117.32.

Construction Partners (NASDAQ:ROAD) last released its quarterly earnings results on Friday, May 8th. The company reported $0.18 EPS for the quarter, beating the consensus estimate of ($0.05) by $0.23. Construction Partners had a net margin of 3.90% and a return on equity of 15.22%. The business had revenue of $769.20 million during the quarter, compared to analyst estimates of $678.46 million. During the same period in the prior year, the firm posted $0.08 earnings per share. The company’s quarterly revenue was up 34.6% on a year-over-year basis. As a group, research analysts predict that Construction Partners, Inc. will post 2.91 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Construction Partners

Large investors have recently made changes to their positions in the business. Wasatch Advisors LP boosted its position in shares of Construction Partners by 20.6% in the 2nd quarter. Wasatch Advisors LP now owns 1,008,474 shares of the company’s stock worth $119,776,000 after purchasing an additional 172,034 shares in the last quarter. Handelsbanken Fonder AB boosted its holdings in Construction Partners by 9.5% in the second quarter. Handelsbanken Fonder AB now owns 16,100 shares of the company’s stock worth $1,912,000 after acquiring an additional 1,400 shares in the last quarter. Revolve Wealth Partners LLC acquired a new position in shares of Construction Partners during the second quarter valued at about $302,000. Thurston Springer Miller Herd & Titak Inc. raised its position in shares of Construction Partners by 30.7% in the 2nd quarter. Thurston Springer Miller Herd & Titak Inc. now owns 3,391 shares of the company’s stock valued at $403,000 after purchasing an additional 797 shares during the last quarter. Finally, GAMMA Investing LLC boosted its stake in Construction Partners by 29.5% in the 2nd quarter. GAMMA Investing LLC now owns 3,824 shares of the company’s stock worth $454,000 after purchasing an additional 872 shares in the last quarter. 94.83% of the stock is owned by institutional investors and hedge funds.

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.