Arcosa Stock Fair Value – ARCOSA Stock Holdings Trimmed by Dimensional Fund Advisors LP, According to Recent Report
September 20, 2024

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ARCOSA ($NYSE:ACA), Inc. is a leading provider of infrastructure-related products and solutions for the construction, energy, and transportation markets. The company operates through three business segments: Construction Products, Energy Equipment, and Transportation Products. With a strong reputation and a diverse portfolio of products, ARCOSA has been able to attract the attention of major investors, including Dimensional Fund Advisors LP. According to a recent report by Defense World, Dimensional Fund Advisors LP has made a noteworthy move in its investment strategy for ARCOSA. The investment firm has decided to reduce its stock holdings in the company, which has caught the attention of many in the market. This move may have implications for both ARCOSA and Dimensional Fund Advisors LP, as well as other investors who closely follow the company’s stock performance. The investment firm may have identified certain market trends or changes in the industry that have prompted this decision. It could also be a result of the recent financial performance of ARCOSA, or even a change in the investment objectives of Dimensional Fund Advisors LP. While Dimensional Fund Advisors LP has reduced its stake in ARCOSA, it is important to note that the investment firm still holds a considerable amount of shares in the company. This indicates that they still have confidence in the future prospects of ARCOSA and its ability to generate returns for investors. It is also worth mentioning that Dimensional Fund Advisors LP is not the only major investor in ARCOSA, as there are many other institutional investors who hold shares in the company.
However, it is likely that this news may cause some fluctuations in the company’s stock price. This could also attract the attention of other investors who may see this as an opportunity to invest in ARCOSA at a lower price. This decision may have been driven by various factors and could have implications for both ARCOSA and Dimensional Fund Advisors LP. As with any investment, it is important for investors to carefully consider all factors and conduct thorough research before making any decisions.
Price History
This news comes as the company’s stock experienced a significant increase in value on Thursday. ARCOSA‘s stock opened at $94.57 and closed at $95.27, reflecting a 4.36% increase from its previous closing price of $91.29. The decision by Dimensional Fund Advisors LP to reduce its holdings in ARCOSA may have been prompted by various factors, such as the company’s performance and market trends. It is worth noting that ARCOSA’s stock has been steadily rising over the past few years, with a significant jump in value in the past year alone. This could indicate that the company is performing well and attracting investors’ attention.
However, it is also important to consider that Dimensional Fund Advisors LP is a large asset management firm with a diversified portfolio. They may have made the decision to trim their holdings in ARCOSA as part of their overall investment strategy. This does not necessarily reflect poorly on the company’s performance, but rather a strategic move on the part of the fund. The increase in ARCOSA’s stock value on Thursday could also be attributed to other factors besides the news of Dimensional Fund Advisors LP trimming their holdings. Market trends, industry news, and the company’s own financial performance can all impact a stock’s value. Therefore, it is crucial to take a comprehensive look at all factors before drawing conclusions about a company’s stock. In conclusion, the recent report of Dimensional Fund Advisors LP trimming their stock holdings in ARCOSA may have raised some eyebrows, but it is important to consider all the factors at play. The company’s stock value may have increased significantly on Thursday, but this does not necessarily mean that they are underperforming. Only time will tell how this change in ownership will impact ARCOSA and its stock value in the long run. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Arcosa. More…
| Total Revenues | Net Income | Net Margin |
| 2.31k | 158.6 | 5.6% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Arcosa. More…
| Operations | Investing | Financing |
| 261 | -285.8 | -30.8 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Arcosa. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 3.58k | 1.25k | 47.83 |
Key Ratios Snapshot
Some of the financial key ratios for Arcosa are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 6.0% | 4.8% | 9.7% |
| FCF Margin | ROE | ROA |
| 2.5% | 6.0% | 3.9% |
Analysis – Arcosa Stock Fair Value
As an analyst at GoodWhale, I have conducted a thorough analysis of ARCOSA‘s fundamentals. After examining various factors such as the company’s financial performance, industry trends, and competitive landscape, I have determined that the fair value of ARCOSA’s share is around $65.4. This valuation was calculated using our proprietary Valuation Line, which takes into account historical data and projected future growth. However, despite our fair value estimate, it is important to note that currently, ARCOSA’s stock is being traded at $95.27. This means that the stock is overvalued by a significant margin of 45.6%. This indicates that the market is currently pricing in potential future growth that may not be sustainable or realistic. While it is not uncommon for stocks to trade above their fair value, it is important for investors to be aware of any potential risks associated with an overvalued stock. In the case of ARCOSA, investors should closely monitor the company’s financial performance and industry trends to determine if the stock’s current valuation is justified. Overall, our analysis suggests that ARCOSA’s stock may be overvalued at its current trading price. It is important for investors to carefully consider their investment decisions and have a thorough understanding of the company’s fundamentals before making any investment decisions. More…

Peers
The company has a wide range of products and services that cover all aspects of infrastructure development, from design and construction to financing and operations. Arcosa Inc’s main competitors are Sterling Construction Co Inc, Trace SOP EOOD, BCPL Railway Infrastructure Ltd.
– Sterling Construction Co Inc ($NASDAQ:STRL)
Sterling Construction Co Inc is a construction company that specializes in the building of transportation infrastructure projects. The company has a market capitalization of $938.7 million as of 2022 and a return on equity of 19.94%. The company’s main operations are focused on the construction of highways, roads, bridges, and other transportation-related infrastructure projects.
– Trace SOP EOOD ($LTS:0M7W)
Trace SOP EOOD is a Bulgaria-based company engaged in the provision of software solutions. The Company offers a range of software products, including an accounting system, a human resources and payroll system, and a customer relationship management system, among others. Trace SOP EOOD has a market capitalization of 88.07M as of 2022, a return on equity of 3.34%. The company provides software solutions to businesses of all sizes, from small businesses to large enterprises. Trace SOP EOOD’s products are used by businesses in a variety of industries, including healthcare, manufacturing, retail, and government.
– BCPL Railway Infrastructure Ltd ($BSE:542057)
The market capitalization of BCPP Railway Infrastructure Ltd. as of 2022 was 729.99 million, with a return on equity of 9.17%. The company is engaged in the business of providing railway infrastructure services. It is a subsidiary of Bharat Cookware & Pressure Pipe Ltd.
Summary
Dimensional Fund Advisors LP, a global investment firm, has recently reduced its stock holdings in Arcosa, Inc., a leading provider of infrastructure-related products and solutions. This suggests that the firm may have lost confidence in the company’s future performance.
However, despite this news, Arcosa’s stock price actually increased on the same day. This could indicate that other investors still have faith in the company and are willing to invest, potentially making it a good opportunity for long-term investors. It is important for investors to conduct thorough research and analysis of a company’s financials and market trends before making any investment decisions.
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