Robert P. Flowers, Senior Vice President at Construction Partners, Inc. (NASDAQ:ROAD), recently sold a significant portion of his holdings in the company. According to a filing with the Securities and Exchange Commission, Flowers sold a total of 25,000 shares of Class A common stock on November 25, 2024. The shares were sold at prices ranging from $100.66 to $102.13 per share, resulting in a total transaction value of approximately $2.53 million.
Following these transactions, Flowers retains ownership of 42,916 shares of Class A common stock. Additionally, he holds 5,990 shares of Class B common stock and 1,379 restricted stock units, as per the company's equity incentive plan. These sales and holdings reflect Flowers' ongoing involvement and investment in Construction Partners, a company specializing in heavy construction services.
In other recent news, Construction Partners, Inc. reported a record fiscal year in 2024, with revenue growing by 17% to $1.82 billion and net income increasing by 41% to $68.9 million. The company's adjusted EBITDA also saw a significant rise of 28%, reaching $220.6 million. The acquisition of Lone Star Paving played a crucial role in the company's strategy, contributing to its EBITDA margins and enhancing its presence in Texas. DA Davidson recently increased the price target for Construction Partners to $95.00, up from the previous target of $75.00, citing additional contributions from the Lone Star Paving acquisition and a positive outlook on the company's future. For fiscal 2025, Construction Partners projects increased revenue between $2.48 billion and $2.58 billion, and adjusted EBITDA between $347 million and $377 million. These recent developments reflect a period of robust growth and strategic expansion for the company.
InvestingPro Insights
The recent stock sale by Robert P. Flowers comes at a time when Construction Partners, Inc. (NASDAQ:ROAD) is experiencing significant market momentum. According to InvestingPro data, the company's stock has shown remarkable performance, with a 130.74% price total return over the past year and a 128.68% return year-to-date. This strong performance is reflected in the stock trading at 97.03% of its 52-week high, indicating investor confidence in the company's prospects.
However, investors should note that ROAD is currently trading at a high earnings multiple, with a P/E ratio of 74.8. This valuation suggests that the market has high expectations for the company's future growth. An InvestingPro Tip highlights that ROAD is trading at a high P/E ratio relative to near-term earnings growth, with a PEG ratio of 1.97 for the last twelve months as of Q4 2024.
Despite the high valuation, ROAD has demonstrated solid financial performance. The company's revenue for the last twelve months as of Q4 2024 stood at $1.82 billion, with a revenue growth of 16.65% over the same period. This growth aligns with another InvestingPro Tip indicating that analysts anticipate sales growth in the current year.
For investors seeking a more comprehensive analysis, InvestingPro offers 18 additional tips for Construction Partners, Inc., providing a deeper understanding of the company's financial health and market position.
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