Cardinal Infrastructure Group (NASDAQ:CDNL) Hits New 12-Month Low – Time to Sell?

Cardinal Infrastructure Group Inc. (NASDAQ:CDNL) shares reached a new 52-week low on Thursday. The company traded as low as $15.41 and last traded at $16.46, with a volume of 2,299,897 shares. The stock had previously closed at $18.62.

Cardinal Infrastructure Group News Roundup

Here are the key news stories impacting Cardinal Infrastructure Group this week:

• Positive Sentiment: Cardinal Infrastructure agreed to acquire Hughes Brothers Construction, a Central Florida heavy civil and site-development contractor, for approximately $357.5 million (reported elsewhere as roughly $360 million). The transaction would expand Cardinal’s geographic reach and operating platform, with management saying the purchase multiple is consistent with its typical new-market acquisitions. Cardinal Infrastructure announces Hughes Brothers acquisition
• Neutral Sentiment: Coverage of Cardinal’s M&A call and comparisons with Quanta Services provided additional context on the acquisition strategy, but did not identify a new operating catalyst likely to immediately change investor sentiment. Cardinal Infrastructure M&A call transcript
• Negative Sentiment: Several securities-law firms, including Robbins Geller Rudman & Dowd, Scott+Scott, and Bleichmar Fonti & Auld, announced investigations into potential violations of federal securities laws involving Cardinal Infrastructure. The announcements encourage investors and potential witnesses to contact the firms and reference a substantial recent stock decline. The investigations do not establish wrongdoing, but they increase legal, reputational, and potential liability risks and are likely pressuring the shares. Scott+Scott investigation announcement BFA Law investigation announcement

Wall Street Analysts Forecast Growth

Several equities research analysts have issued reports on the stock. Oppenheimer lowered their price target on shares of Cardinal Infrastructure Group from $80.00 to $70.00 and set an “outperform” rating on the stock in a report on Wednesday, August 12th. Truist Financial initiated coverage on shares of Cardinal Infrastructure Group in a research note on Friday, September 25th. They issued a “buy” rating and a $40.00 price objective for the company. Stifel Nicolaus reduced their price objective on shares of Cardinal Infrastructure Group from $63.00 to $52.00 and set a “buy” rating for the company in a report on Wednesday, August 12th. Weiss Ratings downgraded shares of Cardinal Infrastructure Group from a “hold (c)” rating to a “hold (c-)” rating in a report on Thursday, October 8th. Finally, Zacks Research lowered shares of Cardinal Infrastructure Group from a “strong-buy” rating to a “hold” rating in a research report on Monday, July 13th. Four investment analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company’s stock. According to data from MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus price target of $49.25.

Cardinal Infrastructure Group Stock Performance

The company has a quick ratio of 3.59, a current ratio of 3.59 and a debt-to-equity ratio of 0.32. The firm has a 50 day moving average price of $35.06 and a two-hundred day moving average price of $51.36.

Cardinal Infrastructure Group (NASDAQ:CDNL) last posted its earnings results on Tuesday, August 11th. The company reported $0.26 EPS for the quarter, missing the consensus estimate of $0.48 by ($0.22). The company had revenue of $226.93 million during the quarter. Analysts forecast that Cardinal Infrastructure Group Inc. will post 1.85 earnings per share for the current year.

Insider Activity

In related news, Director Ivy Zelman acquired 12,647 shares of the company’s stock in a transaction on Friday, August 14th. The stock was purchased at an average cost of $39.61 per share, for a total transaction of $500,947.67. Following the completion of the purchase, the director directly owned 32,891 shares of the company’s stock, valued at $1,302,812.51. The trade was a 62.47% increase in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Leon Wood acquired 51,400 shares of the business’s stock in a transaction on Friday, August 14th. The shares were bought at an average cost of $39.36 per share, with a total value of $2,023,104.00. Following the completion of the acquisition, the director owned 51,400 shares of the company’s stock, valued at approximately $2,023,104. This trade represents a ∞ increase in their position. The SEC filing for this purchase provides additional information. Over the last ninety days, insiders acquired 214,597 shares of company stock valued at $8,285,516. 61.70% of the stock is owned by company insiders.

Institutional Investors Weigh In On Cardinal Infrastructure Group

A number of hedge funds have recently made changes to their positions in the company. Round Rock Advisors LLC lifted its holdings in Cardinal Infrastructure Group by 18.7% during the 2nd quarter. Round Rock Advisors LLC now owns 22,438 shares of the company’s stock valued at $2,114,000 after purchasing an additional 3,541 shares during the last quarter. Wellington Management Group LLP acquired a new position in Cardinal Infrastructure Group in the second quarter valued at about $14,687,000. Ranger Investment Management L.P. bought a new stake in Cardinal Infrastructure Group during the second quarter worth about $11,768,000. Bank of America Corp DE grew its stake in Cardinal Infrastructure Group by 139.4% during the first quarter. Bank of America Corp DE now owns 125,804 shares of the company’s stock worth $4,989,000 after buying an additional 73,259 shares during the last quarter. Finally, California State Teachers Retirement System bought a new stake in Cardinal Infrastructure Group during the first quarter worth about $28,000.

About Cardinal Infrastructure Group

Cardinal Infrastructure Group, Inc (NASDAQ: CDNL) is an infrastructure services company serving customers in the telecommunications and utility industries. The company focuses on the development, construction, installation and maintenance of infrastructure used to support communications networks and essential utility systems.

Its service offerings are centered on communications and utility infrastructure projects, including work associated with fiber-optic and other network deployments.