Construction Partners, Inc. (NASDAQ:ROAD) is among the top stocks that may remain in focus today as the company shares are trading 3.86% or 0.5 points higher from last closing price of $12.96, reaching $13.46 at last check. Any clue why there is so much of action in the ROAD stock? The share price has risen in 2 of the last 5 days and is up 6.06% over the past week. It will be exciting to see whether the stock manages to continue increasing or take a minor break for the next few days. The move came on solid volume too with far more shares changing hands than in a normal session. Trading activity as of this writing strengthened by 56,125 shares, and in total 151025 shares valued at $2.033 million were seen changing hands compared with 94900 shares valued at $1.23 million recorded at the previous session. You should take into consideration that a greater volume on higher prices causes bullish signal for the market. It shows the sentiment is in an uptrend and more and more traders want to enter in the ROAD stock.
Construction Partners, Inc. (ROAD) shares have notched a 3-month gain of about 6.06%, but has still advanced 46.77% year to date. By comparison, the stock added 2.05% over the past 12 months, while it slipped -4.42% over the 1 month. The company’s market cap is around $662.13M, with its short interest ratio standing at 4.25%.
In the current trading session for ROAD, the stock witnessed two major price actions, it rose to a high of $13.79 and was down as much as $12.93 at one point. The high recorded is very low when compared to their 52-week high which is $7.7. The 52-week high is now at -9.81 distance from current price. Their recent low of $14.98 represents a 75.45% recovery. This data is quite important for investors who look to benefit from the recent rise of the company’s stock. The price target currently for ROAD is $15.1, this is above the recent high that the stock attained. Taking a look at the overall sentimental views of financial analysts, the trading pattern of this stock recently is very clear.
The stock of Construction Partners, Inc. earned $0.72 per share in the trailing 12 months and has a P/E ratio of 18.69. You can compare it with that of similar companies in its industry to get a sense of whether the stock you’re looking to purchase is overvalued or undervalued. Its current price to earnings ratio is higher than the ones recorded by the industry which is 14.58 and lower compared to the sector’s average of 24.02. When the P/E ratio is low let’s say below 1.0, then the stock price is considered a good value. ROAD also has P/S multiple of 0.94. This is smaller versus the 12 month P/S ratios of other companies in the same indutry. The peer average price to sales ratio is 1.42x.
The company recorded an interesting insider purchase transaction by the Director on Dec 21, 2018. A Securities and Exchanges Commission filings show that Ned N Fleming III bought a total of 4,000 ROAD shares that day for a sum of around $33,880. Construction Partners, Inc. (ROAD) insiders have acquired 19,568,502 shares in the stock within the past three months. In total, individual insiders traded 19,568,502 shares in the business, which makes up 99.865% of 19,595,002 shares that were traded over a year. In the past 12 months, insiders have purchased 19,595,002 shares while the seller parted with shares.
ROAD‘s last price was up 18.41% as compared to the average trading price of 50 days recorded at $11.37 while enlarging the period to 200 trading days, the average closing price was $12.83. At present, there are 51.09 million in the total number of common shares owned by the public and among those 11.71 million shares have been available to trade. The percentage of shares being held by the company management was 2.3% while institutions stake was 95.6%. The company has generated positive returns on equity over the last 12 months (12.7%). It managed to keep its gross profit margin at 14.2% over the past 12 months.
When assessing the full upside of the ROAD stock, there is another set of technicals that should be looked into and considered. Its -0.23% decline from moving average of $13.49 has brought about a negative sentiment when calculated over the last 20 days. The market has allocated a beta of 0 to the stock. With the beta been less than one, this implies that the company shares are theoretically less volatile than the market, something that the traders definitely are keeping an eye on.
Most of the analysts surveyed by Thomson/First Call think quite highly of Construction Partners, Inc. — 3 analysts rate the stock as a buy with another 0 rating it strong buy. There are 0 analysts who maintain a hold rating for the stock, with 0 giving it a sell rating. Analysts arrived at a 12-month price target of $14.8333 on shares of Construction Partners, Inc. (NASDAQ:ROAD), which corresponds to 8.99% upside potential than its current market price of $13.46 and implies potential despite the recent advance in the price. However, their current target price has fallen from $14.9 a month ago and is up handily from the consensus target of $14.6 a quarter ago.
In the last five years, the EPS of the company has been roughly 0%. Though the percentage looks disappointing, extra tailwinds are emerging as looking out over a next 5-year period, with analysts estimating that their earnings will increase annually by 12%. The revenue of the company has retreated at an average annualized rate of about 0 over the last five years. The company recently recorded an increase of 38.2%, but this figure is rather attractive.
Let’s briefly check the hedge fund interest towards ROAD stock. Marshall Wace LLP trimmed position in the company after it dumped -316.5% or -45,777 shares of its common stock. The hedge fund now owns 99,107 shares worth $1,333,980, SEC documents show. Gilder Gagnon Howe & Co. LLC shored up assets in the stock as 19145.97 shares have been purchased, increasing its stake by 198% to 57,055 shares which are currently valued at $767,960. In addition, BlueCrest Capital Management Ltd recently reported that it now owns 13,700 shares making a total of $184,402 based on the recent price. This refelects a change of 50% in their ownership.