Knife River Receives Upgrade from Wall Street Analysts
Shares of Knife River (NYSE: KNF) have been upgraded from a sell rating to a hold rating, according to a report released by Wall Street Zen on November 4, 2023. This decision reflects a growing confidence among analysts regarding the company’s performance in the construction materials sector.
Several prominent investment firms have recently adjusted their ratings for Knife River. Wells Fargo & Company upgraded its rating from “equal weight” to “overweight,” setting a target price of $75.00. Similarly, UBS Group also designated Knife River with an “overweight” rating on the same day.
In contrast, Oppenheimer lowered its price target from $120.00 to $100.00, maintaining an “outperform” rating. Meanwhile, Royal Bank of Canada reduced its target from $115.00 to $105.00 but kept the “outperform” rating intact. DA Davidson also adjusted its target, decreasing it from $105.00 to $95.00 while issuing a “buy” rating.
Analysts have given Knife River an average rating of “Moderate Buy” with a consensus price target of $99.00, as reported by MarketBeat. Currently, six analysts have assigned a “buy” rating, while one has issued a hold rating.
Financial Performance and Future Outlook
Knife River recently reported its quarterly earnings on November 4, 2023. The company achieved earnings per share (EPS) of $2.52, surpassing the consensus estimate of $2.45 by $0.07. The firm recorded a revenue of $1.20 billion, slightly below the analysts’ expectations of $1.22 billion. The company’s net margin stood at 4.87%, with a return on equity of 9.97%. Looking ahead, Knife River has provided guidance for fiscal year 2025, projecting EPS of $4.11.
Institutional Investors and Stakeholder Activity
Recent changes in institutional holdings indicate growing interest in Knife River. Brady Martz Wealth Solutions LLC increased its stake by 2.3% during the second quarter, now owning 6,786 shares valued at $554,000. Unified Investment Management also boosted its holdings by 2.6%, acquiring 5,968 shares worth $487,000.
Focus Partners Advisor Solutions LLC raised its position by 2.0% in the first quarter, now holding 8,004 shares valued at $722,000. Cornerstone Investment Partners LLC increased its stake by 5.8% in the third quarter, owning 2,941 shares worth $226,000. Lastly, Nisa Investment Advisors LLC raised its holdings by 1.3% during the second quarter, now owning 13,292 shares valued at $1.085 million.
A significant 80.11% of Knife River’s stock is currently held by institutional investors and hedge funds, reflecting a strong backing from major financial entities.
Knife River Corporation, based in the United States, specializes in aggregates-led construction materials and contracting services. It operates through several segments including Pacific, Northwest, Mountain, Central, and Energy Services. The company engages in the mining, processing, and selling of construction aggregates, such as crushed stone, sand, and gravel, while also producing asphalt and ready-mix concrete.
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