In a recent transaction on June 18, Stefan L. Shaffer, a director at Construction Partners, Inc. (NASDAQ:ROAD), sold 2,500 shares of the company's Class A Common Stock at an average price of $58.41, totaling approximately $146,025. The sales occurred in a price range from $58.23 to $58.75 per share, according to the weighted average disclosed in the filing.
Following the sale, Shaffer's remaining holdings in Construction Partners include 31,995 shares, which also comprise 5,667 restricted shares scheduled to vest on January 1, 2025, under the company's 2018 Equity Incentive Plan. The details of the transactions have been made available to Construction Partners and will be provided upon request to the SEC staff or any shareholder of the issuer.
Construction Partners, Inc., with its business address in Dothan, Alabama, operates in the heavy construction sector, focusing on projects other than building construction. The company is incorporated in Delaware and has its fiscal year-end on September 30.
This transaction was reported in a Form 4 filing with the Securities and Exchange Commission, with the date of the report being June 18, 2024, and the filing submitted on June 20, 2024. The sale by Shaffer represents a notable change in his investment in the company, and the transaction details are now publicly accessible for investors' scrutiny.
In other recent news, Construction Partners, Inc. reported a strong second quarter of fiscal 2024, experiencing growth in revenue, gross profits, adjusted EBITDA, and adjusted EBITDA margin year-over-year. The company raised its full-year guidance due to high project demand and a robust commercial market, and announced the acquisition of Sunbelt asphalt surfaces, expected to contribute an additional $20 million in revenue for the remainder of the year.
DA Davidson and Baird, two financial firms, have revised their price targets for Construction Partners based on these developments. DA Davidson increased its price target from $45 to $50, maintaining a Neutral rating, influenced by the company's solid backlog and bookings. Meanwhile, Baird raised its price target from $50 to $60, also retaining a Neutral rating, citing the company's strong backlog and potential for the upcoming summer construction season.
These recent developments reflect Construction Partners' steady performance and financial prospects. The company's strong position is underscored by the analysts' comments and the upward revision of both guidance and analysts' estimates. The company's backlog, which covers 80% of its next twelve months' capacity, provides clear visibility into potential revenue streams. This robust financial position, coupled with strategic acquisitions, positions Construction Partners for continued growth.
InvestingPro Insights
As investors scrutinize the recent sale of shares by Construction Partners, Inc. (NASDAQ:ROAD) director Stefan L. Shaffer, it's valuable to consider the company's current financial health and market performance. With a market capitalization of $3.09 billion, Construction Partners is trading at a P/E ratio of 49.5, reflecting investor expectations of future earnings growth. Notably, analysts have revised their earnings upwards for the upcoming period, which may indicate confidence in the company's potential to outperform.
Despite Shaffer's sale, Construction Partners has demonstrated a strong market performance with a significant price uptick over the last six months, boasting a 34.54% total return in that period. The company also shows healthy liquidity, with liquid assets surpassing short-term obligations, and operates with a moderate level of debt, suggesting a stable financial position.
For investors interested in a deeper analysis, InvestingPro offers additional insights and metrics. Currently, there are 15 more InvestingPro Tips available, which can be accessed by visiting: https://www.investing.com/pro/ROAD. These tips can provide a more comprehensive understanding of Construction Partners' financial nuances and market dynamics. Remember to use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription to InvestingPro, enriching your investment strategy with expert data and analysis.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.