Does Sterling Infrastructure Inc. (STRL) offer a good opportunity for investors?

Sterling Infrastructure Inc. (NASDAQ: STRL) stock jumped 4.37% on Tuesday to $34.15 against a previous-day closing price of $32.72. With 0.67 million shares changed hands, the volume of the stock remained heavier than its average volume of 0.22 million shares. During the session, the Engineering & Construction company that operates in wider Industrials sector, reached to the highest price of $34.56 whereas the lowest price it dropped to was $32.60. The 52-week range on STRL shows that it touched its highest point at $34.86 and its lowest point at $20.46 during that stretch. It currently has a 1-year price target of $37.50. Beta for the stock currently stands at 1.40.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of STRL was up-trending over the past week, with a rise of 5.56%, but this was up by 7.39% over a month. Three-month performance surged to 37.04% while six-month performance rose 45.50%. The stock gained 29.60% in the past year, while it has gained 4.12% so far this year. A look at the trailing 12-month EPS for STRL yields 2.83 with Next year EPS estimates of 3.45. For the next quarter, that number is 0.68. This implies an EPS growth rate of 43.50% for this year and 9.91% for next year. EPS is expected to grow by 11.00% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 49.20%.

Float and Shares Shorts:

At present, 30.28 million STRL shares are outstanding with a float of 29.11 million shares on hand for trading. On Oct 13, 2022, short shares totaled 0.4 million, which was 1.32% higher than short shares on Sep 14, 2022. In addition to Mr. Joseph A. Cutillo as the firm’s CEO, Pres & Director, Mr. Ronald A. Ballschmiede serves as its Exec. VP, CFO, Chief Accounting Officer & Treasurer.

Institutional Ownership:

Through their ownership of 83.96% of STRL’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 41.30% of STRL, in contrast to 39.85% held by mutual funds. Shares owned by individuals account for 15.01%. As the largest shareholder in STRL with 7.23% of the stake, BlackRock Fund Advisors holds 2,193,409 shares worth 2,193,409. A second-largest stockholder of STRL, The Vanguard Group, Inc., holds 1,557,566 shares, controlling over 5.14% of the firm’s shares. Dimensional Fund Advisors LP is the third largest shareholder in STRL, holding 1,409,707 shares or 4.65% stake. With a 2.88% stake in STRL, the Vanguard Total Stock Market Index is the largest stakeholder. A total of 873,382 shares are owned by the mutual fund manager. The Coeli SICAV I – Global Select Fun, which owns about 2.59% of STRL stock, is the second-largest Mutual Fund holder. It holds 784,800 shares valued at 25.74 million. iShares Russell 2000 ETF holds 2.15% of the stake in STRL, owning 651,315 shares worth 21.36 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for STRL since 2 analysts follow the stock currently. There are 1 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 1 believe that the stock is worth HOLDING, 0 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With STRL analysts setting a high price target of $40.00 and a low target of $35.00, the average target price over the next 12 months is $37.50. Based on these targets, STRL could surge 17.13% to reach the target high and rise by 2.49% to reach the target low. Reaching the average price target will result in a growth of 9.81% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. STRL will report FY 2022 earnings on 02/27/2024. Analysts have provided yearly estimates in a range of $3.15 being high and $3.13 being low. For STRL, this leads to a yearly average estimate of $3.14. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Sterling Infrastructure Inc. surprised analysts by $0.10 when it reported $0.97 EPS against a consensus estimate of $0.87. The surprise factor in the prior quarter was $0.14. Based on analyst estimates, the high estimate for the next quarter is $0.69 and the low estimate is $0.67. The average estimate for the next quarter is thus $0.68.

Summary of Insider Activity:

Insiders traded STRL stock several times over the past three months with 2 Buys and 6 Sells. In these transactions, 50,226 shares were bought while 76,812 shares were sold. The number of buy transactions has increased to 11 while that of sell transactions has risen to 12 over the past year. The total number of shares bought during that period was 597,624 while 284,698 shares were sold.

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