Steven J. Demetriou, a director of Arcosa , Inc. (NYSE:ACA), has made a significant purchase of the company's stock, according to a recent filing with the Securities and Exchange Commission. On September 12, 2024, Demetriou acquired 6,000 shares of common stock at an average price of $87.70 per share, totaling approximately $526,200. The transaction was executed in multiple parts, with prices ranging from $87.64 to $87.77.
This purchase increases Demetriou's direct ownership in the company to 9,943 shares. The acquisition reflects a notable investment in the company by one of its directors and is a transaction of interest to investors who closely monitor insider activity as an indicator of corporate confidence.
Arcosa, Inc., based in Dallas, Texas, operates in the fabricated structural metal products industry and is known for its manufacturing services. The company's stock trades on the New York Stock Exchange under the ticker symbol ACA.
Investors and shareholders can request detailed information about the specific prices and number of shares acquired at each price point directly from the company or from Demetriou, as noted in the filing's footnotes.
This latest move by a member of Arcosa's board provides insight into the actions of the company's insiders and may be a point of analysis for those looking to make informed investment decisions regarding the company's stock.
In other recent news, Dallas-based Arcosa, Inc. has made strategic financial moves to support its acquisition of Stavola Holding Corporation's construction materials business. The company has amended its credit agreement, allowing for a $1.2 billion cash acquisition. The amendment includes the issuance of $600 million in 6.875% senior unsecured notes due 2032 and a new senior secured Term Loan B Facility due 2031 of up to $700 million.
These developments coincide with Arcosa's strong financial results, with record quarterly revenues increasing by 14% and adjusted EBITDA increasing by 31%. Oppenheimer and Loop Capital have responded by maintaining positive ratings on Arcosa and increasing their shares target to $105 and $110, respectively.
In addition, Arcosa has divested its steel components business to Stellex Capital Management, a move that aligns with the company's focus on deleveraging, organic growth, and efficiency improvements. These recent developments emphasize Arcosa's strategic growth objectives and transformation into a higher-growth company.
InvestingPro Insights
As Arcosa, Inc. (NYSE:ACA) garners attention with recent insider stock purchases, a closer look at the company's financial health and market performance through InvestingPro's lens offers investors additional context. With a market capitalization of $4.27 billion and a Price/Earnings (P/E) ratio standing at 28.95, Arcosa appears to be valued significantly by the market, reflecting potential investor confidence in its earnings capacity.
An InvestingPro Tip highlights that Arcosa operates with a moderate level of debt, which suggests a balanced approach to leverage that can be a sign of prudent financial management. In addition, the company's liquid assets exceed its short-term obligations, indicating a solid position to cover immediate liabilities. This information, coupled with the director's stock purchase, may signal a positive outlook on the company's financial stability and future performance.
From a profitability standpoint, analysts predict that Arcosa will be profitable this year, and the company has been profitable over the last twelve months. This consistent performance is reinforced by a strong return over the last five years, as noted in another InvestingPro Tip. These factors could be driving the confidence exhibited by insiders like Steven J. Demetriou.
For investors seeking further analysis, Arcosa's profile on InvestingPro includes additional tips—there are six more listed, providing deeper insights into the company's financial metrics and market prospects. The InvestingPro product, accessible via https://www.investing.com/pro/ACA, offers an extensive array of tools and data points for those looking to make informed investment decisions.
With a fair value estimate of $108 according to analyst targets, and the InvestingPro Fair Value at $75.84, investors might find the current trading levels an interesting entry point, especially in light of the recent insider buying activity. As always, potential investors should consider the full spectrum of financial data and market analysis when evaluating Arcosa's stock for their portfolios.
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