Capital World Investors Boosts Stake in Arcosa, Inc. $ACA

Capital World Investors grew its holdings in shares of Arcosa, Inc. (NYSE:ACA) by 5.0% in the 4th quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The fund owned 1,680,000 shares of the company’s stock after purchasing an additional 80,000 shares during the period. Capital World Investors owned approximately 3.43% of Arcosa worth $178,618,000 at the end of the most recent quarter.

Several other hedge funds and other institutional investors have also recently made changes to their positions in the business. Capital International Investors lifted its holdings in shares of 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 last quarter. Royce & Associates LP lifted its holdings in shares of Arcosa by 0.4% during the 3rd quarter. Royce & Associates LP now owns 1,267,091 shares of the company’s stock valued at $118,739,000 after purchasing an additional 4,652 shares during the last quarter. The Manufacturers Life Insurance Company lifted its holdings in shares of Arcosa by 25.3% during the 2nd quarter. The Manufacturers Life Insurance Company now owns 763,557 shares of the company’s stock valued at $66,208,000 after purchasing an additional 154,172 shares during the last quarter. Norges Bank purchased a new stake in shares of Arcosa during the 4th quarter valued at $68,225,000. Finally, Bank of America Corp DE lifted its holdings in shares of Arcosa by 80.5% during the 2nd quarter. Bank of America Corp DE now owns 465,140 shares of the company’s stock valued at $40,332,000 after purchasing an additional 207,457 shares during the last quarter. Hedge funds and other institutional investors own 90.66% of the company’s stock.

Wall Street Analyst Weigh In

Several brokerages have recently commented on ACA. Wall Street Zen upgraded Arcosa from a “sell” rating to a “hold” rating in a report on Saturday, May 30th. Oppenheimer began coverage on Arcosa in a report on Thursday, May 28th. They set an “outperform” rating and a $150.00 price objective for the company. Barclays increased their price objective on Arcosa from $115.00 to $140.00 and gave the company an “overweight” rating in a report on Monday, May 4th. Texas Capital upgraded Arcosa to a “strong-buy” rating in a report on Friday, March 27th. Finally, Weiss Ratings lowered Arcosa from a “buy (b-)” rating to a “hold (c+)” rating in a report on Monday, May 11th. One investment analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, Arcosa presently has an average rating of “Moderate Buy” and an average target price of $138.33.

Arcosa Stock Performance

Shares of ACA stock opened at $123.62 on Tuesday. The firm has a market capitalization of $6.07 billion, a price-to-earnings ratio of 27.29, a price-to-earnings-growth ratio of 1.80 and a beta of 1.06. The company has a debt-to-equity ratio of 0.57, a current ratio of 2.32 and a quick ratio of 1.60. The business has a fifty day moving average of $118.85 and a 200 day moving average of $114.50. Arcosa, Inc. has a 1 year low of $81.91 and a 1 year high of $135.58.

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

Arcosa Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, July 31st. Shareholders of record on Wednesday, July 15th will be given a dividend of $0.05 per share. This represents a $0.20 annualized dividend and a yield of 0.2%. The ex-dividend date of this dividend is Wednesday, July 15th. Arcosa’s dividend payout ratio (DPR) is currently 4.42%.

Arcosa Company Profile

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.