ROAD - Why Construction Partners Stock Popped 8% Today
Shares of Construction Partners (NASDAQ: ROAD), which (as the ticker implies) builds roads, are up 8.1% as of 3:15 p.m. EDT Wednesday. This is less than a day after the company announced the pricing of its secondary stock offering -- $14.25 a share.
Construction Partners suffered a 6% decline in share price on Monday after the company announced it had retained the services of Bank of America Merrill Lynch, Baird, and Raymond James Financial to facilitate a sale of 5 million or more shares on behalf of its existing shareholders.
Presumably, investors feared the move meant insiders were losing confidence in the stock, and decided to jump ship themselves. Today's news doesn't change that story. Indeed, the fact that Construction Partners' insiders agreed to sell their shares for nearly a 10% discount to what they were worth as recently as Friday suggests there may be some motivation for their selling.