Arcosa, Inc. (NYSE: ACA) has received a significant boost from DA Davidson, which raised its price target for the company’s stock from $110.00 to $120.00 in a report released on Monday. This adjustment comes as Arcosa continues to demonstrate solid financial performance, leading DA Davidson to maintain a buy rating for the stock.
On Monday, shares of Arcosa opened at $95.77, reflecting a slight decline of 0.2%. The company’s current financial metrics paint a stable picture: it boasts a debt-to-equity ratio of 0.67, a quick ratio of 1.35, and a current ratio of 2.12. Over the past year, Arcosa’s stock has fluctuated significantly, with a 52-week low of $68.11 and a high of $113.43. The company’s market capitalization stands at approximately $4.68 billion, with a price-to-earnings ratio of 50.94 and a beta of 1.01.
Strong Earnings Report and Insider Activity
Arcosa recently announced its earnings results for the quarter ending August 7, 2023. The company reported earnings per share (EPS) of $1.27, exceeding analysts’ expectations of $1.05 by $0.22. Despite this positive performance, revenue for the quarter was $736.90 million, falling short of the anticipated $754.20 million. This figure reflects a year-over-year revenue increase of 10.9%.
The company’s net margin was reported at 3.45%, with a return on equity of 6.25%. Looking ahead, analysts project that Arcosa will achieve an EPS of $3.23 for the current fiscal year.
Recent insider transactions have garnered attention as well. On August 11, insider Kerry S. Cole sold 7,966 shares of Arcosa at an average price of $95.77, totaling approximately $762,903.82. Following this sale, Cole retained 19,769 shares valued at around $1,893,277.13, marking a 28.72% decrease in their ownership stake.
In another transaction, insider Jesse E. Jr. Collins sold 8,616 shares on June 17 for an average price of $86.40, amounting to approximately $744,422.40. Collins’ remaining shares now total 12,551, valued at about $1,084,406.40. In the past 90 days, insiders have sold a total of 17,417 shares, worth approximately $1,581,282. Currently, insiders own 1.20% of the company’s stock.
Institutional Investment Trends
Institutional trading activity has also been notable, with several large investors adjusting their positions in Arcosa. Banque Cantonale Vaudoise acquired a new stake in the first quarter valued at $28,000. In the second quarter, Trust Co. of Toledo NA OH invested $40,000, while BNP PARIBAS ASSET MANAGEMENT Holding S.A. added a stake worth $51,000.
Additionally, Versant Capital Management Inc. increased its position by 81.5% during the first quarter, now holding 804 shares valued at $62,000. Blue Trust Inc. also raised its stake by 18.0% in the second quarter, acquiring 939 shares worth approximately $81,000. Institutional investors currently control 90.66% of Arcosa’s stock, indicating strong confidence in the company’s prospects.
Arcosa, Inc. operates primarily in the United States, providing infrastructure-related products and solutions across various sectors, including construction, engineered structures, and transportation. The company operates through three main segments: Construction Products, Engineered Structures, and Transportation Products. As Arcosa continues to navigate market dynamics, its recent financial performance and analyst upgrades position it favorably for sustained growth.