A schedule 13G filing with the SEC on Friday evening revealed that Steven Cohen increased his stake in US Concrete Inc (Nasdaq: USCR) by $20.7 million. With the stock down -16.4% in the last month, it’s worth taking a closer look at the company.
Point72 Adds To Its US Concrete Stake
On February 14th, Steven Cohen’s firm Point72 Asset Management filed its quarterly Form 13F with the SEC. The filing showed that the investment firm held 529,956 shares of US Concrete worth $44.3 million as of December 31st.
However, a new filing on Friday revealed that Point72 Asset Management purchased an additional 337,927 shares bringing the hedge fund’s total ownership stake to 867,883 shares worth roughly $53.1 million. This also represents 5.2% of US Concrete’s total equity.
The company’s shares last traded at $61.15 as of Monday afternoon, down -16.4% over the last month. Could the recent buying activity signal a promising road ahead while the stock trades near its 52-week low?
source: US Concrete Inc
Potential Reasons For Adding Shares
US Concrete produces and sells ready-mixed concrete, aggregates, and concrete-related products and services to the construction industry in the United States and Canada. It primarily serves concrete sub-contractors, general contractors, governmental agencies, property owners and developers, architects, engineers, and home builders. Wall Street analysts covering the stock often compare the company to a peer group that includes Eagle Materials (NYSE: EXP), Vulcan Materials (NYSE: VMC), Summit Materials (NYSE: SUM) and Martin Marietta Materials (NYSE: MLM). Analyzing US Concrete’s valuation metrics and ratios relative to peers provides further insight into why Point72 Asset Management purchased shares.
A company’s projected 5-year EBITDA CAGR is the average annual growth rate of EBITDA over a five year period. It’s calculated as follows: