On May 8, 2023, financial news outlets reported that Mitsubishi UFJ Kokusai Asset Management Co. Ltd. had increased its holdings in Arcosa, Inc. by 17.9%. This institutional investor had purchased an additional 2,092 shares of the company’s stock during the fourth quarter, bringing their total to 13,789 shares valued at $745,000 as of their most recent Securities and Exchange Commission (SEC) filing.
This strategic move by Mitsubishi UFJ Kokusai Asset Management Co. Ltd. aligns with Arcosa’s impressive financial results from their most recent earnings report on April 28th. The company reported earnings per share of $1.06 for the quarter, beating analyst estimates by a remarkable margin of $0.56 per share. Additionally, Arcosa had a net margin of 12.47% and a return on equity of 6.52%, showcasing impressive growth and financial stability.
Arcosa’s focus on providing infrastructure-related products and services has proven to be a successful market strategy, operating through three distinct segments: Construction Products, Energy Equipment, and Transportation Products. The Construction Products segment produces construction aggregates while also manufacturing trench shields and shoring products for infrastructure-related projects.
With revenue for this quarter reaching $549.20 million—up 2.5% from last year—Arcosa continues to impress both investors and analysts alike with their strong financial performance and growth potential.
Looking ahead, analysts are forecasting that Arcosa will post an EPS of $2.45 for the current year; representing positive expectations for continued growth in the future.
As such, it is no surprise that Mitsubishi UFJ Kokusai Asset Management Co., among other major investors in the industry are taking action now to establish or expand their holdings in Arcosa Inc., positioning themselves well to take advantage of further growth opportunities when they arise as sure-footedly pointed out by its most recent 13F filing.
Increased Institutional Investment Boosts Performance of Arcosa, Inc. in Q1 2023
Arcosa, Inc. has been drawing the attention of institutional investors and hedge funds in the first quarter of 2023, resulting in a boost to the company’s performance. HighTower Advisors LLC raised its position in Arcosa by 8.1%, while Citigroup Inc. boosted its stock holdings by 7.7%. With an increase of 56.1%, MetLife Investment Management LLC now owns almost $1.5 million worth of the company’s shares whilst Rhumbline Advisers have also increased their position with another 1,576 shares added during the previous quarter.
Commonwealth of Pennsylvania Public School Empls Retrmt SYS have made a significant addition to their stock holdings, raising their stake by over 14% from Q4’22 to Q1’23, bringing their holding value up by a total of $2.38m.
The activity from these institutional investors and hedge funds shows promising signs for Arcosa’s growth going forward. Currently valued at $67.20 per share on its trading price as of May 8th, Monday; adding up a market cap of roughly $3.26 billion.
Arcosa is primarily involved in producing and supplying infrastructure-related products and services across three business segments such as Construction Products, Energy Equipment, and Transportation Products., which have been positively received by potential investors.
Recently, Arcosa announced a dividend payout ratio (DPR) of around 3.47%, estimated over an annualized basis over their most recent quarterly dividend payment delivered on April 28th.
DA Davidson has raised its target price for ACA shares’ from $80 to $85 recently meanwhile introducing reports aimed at providing continued coverage about Arcosa shares benefiting from investment gained this year whilst Loop Capital expect to see growth in Arcosa enough to drive target prices even further for potential shareholders ranging between $75 and $80 each share.
This goes without saying that amidst fluctuating economical notions, Arcosa’s steady performance and the increasing attention of institutional investors throughout have pushed it to a favorable position. This is no surprise after reviewing the recent history of news on their behalf. All indicates that Arcosa will be one among some closely watched companies by financial analysts in years to come.
