Arcosa (NYSE:ACA) Stock Rating Lowered by Texas Capital

Arcosa (NYSE:ACA) was downgraded by Texas Capital from a “strong-buy” rating to a “hold” rating in a research report issued to clients and investors on Tuesday,Zacks.com reports.

A number of other analysts have also recently weighed in on the company. Barclays boosted their price target on Arcosa from $115.00 to $140.00 and gave the stock an “overweight” rating in a research report on Monday, May 4th. Wall Street Zen raised Arcosa from a “sell” rating to a “hold” rating in a report on Saturday, May 30th. DA Davidson raised their price objective on Arcosa from $120.00 to $125.00 and gave the company a “buy” rating in a research note on Monday, March 2nd. Oppenheimer started coverage on Arcosa in a report on Thursday, May 28th. They issued an “outperform” rating and a $150.00 target price for the company. Finally, Zacks Research cut Arcosa from a “hold” rating to a “strong sell” rating in a research report on Tuesday, April 28th. Three investment analysts have rated the stock with a Buy rating and four have given a Hold rating to the company’s stock. According to data from MarketBeat.com, Arcosa presently has an average rating of “Hold” and an average price target of $138.33.

Arcosa Stock Up 0.1%

ACA stock opened at $144.99 on Tuesday. The firm has a market cap of $7.12 billion, a PE ratio of 32.01, a PEG ratio of 2.13 and a beta of 1.06. Arcosa has a 1 year low of $81.91 and a 1 year high of $146.92. The company has a fifty day simple moving average of $124.49 and a 200 day simple moving average of $116.70. The company has a current ratio of 2.32, a quick ratio of 1.60 and a debt-to-equity ratio of 0.57.

Arcosa (NYSE:ACA) last posted its earnings results on Thursday, April 30th. The company reported $0.51 EPS for the quarter, topping the consensus estimate of $0.13 by $0.38. The firm had revenue of $571.70 million for the quarter, compared to the consensus estimate of $642.40 million. Arcosa had a net margin of 7.88% and a return on equity of 8.52%. The business’s quarterly revenue was up 5.0% on a year-over-year basis. During the same period in the prior year, the business posted $0.49 earnings per share. Sell-side analysts anticipate that Arcosa will post 4.25 EPS for the current fiscal year.

Institutional Investors Weigh In On Arcosa

Several hedge funds and other institutional investors have recently made changes to their positions in the business. Dimensional Fund Advisors LP increased its stake in shares of Arcosa by 0.6% in the fourth quarter. Dimensional Fund Advisors LP now owns 2,322,901 shares of the company’s stock worth $246,976,000 after purchasing an additional 13,059 shares during the period. Capital International Investors boosted its stake in Arcosa by 0.7% during the 4th quarter. Capital International Investors now owns 2,244,231 shares of the company’s stock valued at $238,607,000 after purchasing an additional 15,956 shares during the period. State Street Corp grew its holdings in Arcosa by 1.9% in the 4th quarter. State Street Corp now owns 1,948,344 shares of the company’s stock valued at $207,148,000 after buying an additional 36,852 shares during the last quarter. T. Rowe Price Investment Management Inc. grew its holdings in Arcosa by 25.1% in the 4th quarter. T. Rowe Price Investment Management Inc. now owns 1,707,884 shares of the company’s stock valued at $181,583,000 after buying an additional 342,242 shares during the last quarter. Finally, Capital World Investors increased its position in Arcosa by 5.0% in the 4th quarter. Capital World Investors now owns 1,680,000 shares of the company’s stock worth $178,618,000 after buying an additional 80,000 shares during the period. 90.66% of the stock is owned by institutional investors and hedge funds.

Key Arcosa News

Here are the key news stories impacting Arcosa this week:

• Positive Sentiment: CRH agreed to buy Arcosa, Inc. (ACA) for $150 per share in cash, giving shareholders a sizable premium and likely setting a near-term floor under the stock. CRH to Acquire Arcosa; Leading U.S. Provider of Aggregates and Critical Infrastructure Products for $8.5B
• Positive Sentiment: Market coverage highlighted Arcosa’s shares jumping on the takeover news, reflecting investor enthusiasm for the premium buyout price. Arcosa Stock Rises on $8.5 Billion Acquisition by CRH
• Positive Sentiment: The deal could benefit CRH by expanding its aggregates footprint and infrastructure exposure, which supports the strategic rationale for completing the transaction. Is CRH’s $8.5 Billion Arcosa Acquisition a Game Changer?
• Neutral Sentiment: Several law firms announced investigations into whether Arcosa’s board secured a fair price for shareholders, which could create legal headlines but does not change the announced deal terms yet.
• Neutral Sentiment: One commentary noted the stock looks overvalued after the rally, suggesting upside may be capped near the deal price if no higher bid emerges.

About Arcosa

Arcosa, Inc (NYSE: ACA) is a Dallas?based industrial company that was formed through the spin?off of Trinity Industries’ construction products business in 2018. Since its inception, Arcosa has focused on the manufacture and sale of critical infrastructure components, serving a diverse set of end markets including transportation, construction and energy.

The company’s Construction Products segment produces a broad range of highway safety products, such as guardrail systems, sign supports and crash cushions, as well as aggregates and ready?mix concrete.