Knife River Corp stock falls amid sector rotation
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 04 2024
0mins
Should l Buy KNF?
Knife River Corp's stock price decreased by 5.17% as it crossed below its 5-day SMA, indicating a significant downward movement in its trading session.
The decline in Knife River's stock is attributed to sector rotation, as the broader market, including the Nasdaq-100 and S&P 500, showed gains. This suggests that investors may be reallocating their investments away from construction and materials sectors, impacting Knife River negatively despite overall market strength.
This movement raises concerns about the company's short-term performance and investor sentiment, as it may indicate a shift in focus towards other sectors that are currently performing better.
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Analyst Views on KNF
Wall Street analysts forecast KNF stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for KNF is 88.00 USD with a low forecast of 75.00 USD and a high forecast of 106.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
5 Analyst Rating
4 Buy
1 Hold
0 Sell
Strong Buy
Current: 76.240
Low
75.00
Averages
88.00
High
106.00
Current: 76.240
Low
75.00
Averages
88.00
High
106.00
About KNF
Knife River Corporation is an aggregates-based construction materials and contracting services provider. Its segments include West, Mountain, Central and Energy Services. Each geographic segment offers a vertically integrated suite of products and services, including aggregates, ready-mix concrete, asphalt, and contracting services, while the Energy Services segment, which has locations throughout the Company’s geographic footprint, produces and supplies liquid asphalt and related services, primarily for use in asphalt road construction, and is a supplier to some of the other segments. Through its network of 182 active aggregate sites, 106 ready-mix plants and 51 asphalt plants, and 9 liquid asphalt terminals. It supplies construction materials and contracting services to customers in 14 states. Its construction materials are sold to public and private-sector customers, including federal, state, and municipal governments, as well as industrial, commercial, and residential developers.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Analysis of KNF Stock's 52-Week Highs and Lows
- Price Fluctuation Analysis: KNF's stock has a 52-week low of $58.72 and a high of $105.41, with the last trade at $79.66, indicating significant price volatility that reflects market interest and investor sentiment changes.
- Market Trend Observation: The current trading price of $79.66 places KNF's stock in the middle of its 52-week range, suggesting that market expectations for its future performance remain unclear, which could influence investor buying decisions.
- Technical Indicator Reference: The mention of KNF's 200-day moving average implies that market participants may be watching for a breakout above this technical level, potentially impacting short-term trading strategies and investor confidence.
- Investor Sentiment Assessment: Although the current stock price has not reached the 52-week high, the volatility in KNF's price may still attract the interest of short-term traders, prompting investors to closely monitor market dynamics to adjust their strategies.
See More
Headland Capital Fully Exits Knife River Position
- Exit Transaction: On January 28, Headland Capital disclosed in an SEC filing that it sold all 63,636 shares of Knife River, with an estimated transaction value of approximately $4.89 million, indicating a cautious outlook on the company's future prospects.
- Poor Market Performance: As of January 27, Knife River's shares were priced at $68.59, down 31.4% over the past year and significantly underperforming the S&P 500 by 47.5 percentage points, reflecting market pessimism regarding its performance.
- Financial Condition: Despite Knife River's recent record third-quarter revenue of $1.2 billion, up 9% year-over-year, the market's reaction remains tepid due to margin pressures in certain regions, highlighting the challenges the company faces.
- Future Growth Risks: Knife River's growth now hinges on flawless execution, margin recovery, and disciplined balance sheet management, and in the current market environment, investor patience is being tested, potentially leading to a reassessment of risk tolerance among investors.
See More
Paradice Investment Management Acquires Knife River Shares
- New Investment Position: Paradice Investment Management acquired 312,743 shares of Knife River in Q4 for $22 million, reflecting a strategic shift towards infrastructure assets with visible demand and pricing power.
- Significant Stake: This new holding represents 4.28% of Paradice's 13F reportable assets, indicating confidence in Knife River's growth potential, particularly driven by public infrastructure projects.
- Performance Growth: Knife River reported a 9% year-over-year revenue increase to $1.2 billion and an 11% rise in adjusted EBITDA to $272.8 million, showcasing the effectiveness of its acquisition strategy and pricing discipline.
- Strong Backlog: The company's backlog reached a record $995 million, up 32% year-over-year, with 87% tied to public works, and most expected to convert to revenue within 12 months, highlighting robust demand in the infrastructure sector.
See More
Knife River Acquires Texcrete to Expand Texas Market Presence
- Market Expansion: Knife River's acquisition of Texcrete assets enhances its market share in the Texas Triangle, with Texcrete operating six ready-mix plants and 85 trucks serving the rapidly growing Brazos and Montgomery counties.
- Resource Integration: This acquisition will integrate Knife River's existing operations with Texcrete's supply chain, expected to improve raw material efficiency and strengthen the company's competitive position in Texas.
- Employee Integration: Approximately 100 Texcrete employees have joined Knife River's Texas team, further enhancing the company's human resources and market responsiveness.
- Strategic Positioning: Knife River President Brian Gray stated that this acquisition aligns with the company's strategy of focusing on materials-based, vertically integrated operations in mid-size, high-growth markets, and is expected to balance seasonality in northern markets.
See More
Knife River Secures $112 Million Texas Highway Project
- Project Scale: Knife River Corporation has been awarded a $112 million 'Big 6' project in Texas, expected to supply approximately 928,000 tons of hot-mix asphalt, significantly enhancing the region's transportation infrastructure.
- Market Positioning: The project will expand State Highway 6 from four to six lanes, improving capacity for commuters, freight, and emergency evacuations, aligning with the demands of this high-growth market.
- Business Integration: As a subcontractor to Fluor Corporation, Knife River leverages its upgraded asphalt plant and internal access to high-quality aggregates to ensure the supply of higher-margin materials for the project.
- Long-term Impact: This project not only supports infrastructure development in Texas but also provides year-round employment opportunities for the company's team, further solidifying its position in mid-sized high-growth markets.
See More
Knife River Secures $112 Million Project in Texas
Project Overview: Knife River Corp. has secured a $112 million contract for the materials and paving of the State Highway 6 improvement project in Texas, which is part of a larger $671 million project by the Texas Department of Transportation.
Project Details: The project, expected to be completed by 2030, involves providing approximately 928,000 tons of hot-mix asphalt, along with sand, MSE backfill, and base course materials as needed.
Subcontractor Role: Knife River is subcontracted by Fluor Corporation, indicating a collaborative effort in the execution of the highway improvements.
Market Performance: Following the announcement, Knife River's shares were trading at $74.43, reflecting a slight increase of 0.51% in pre-market activity on the New York Stock Exchange.
See More
Analysis of KNF Stock's 52-Week Highs and Lows
- Price Fluctuation Analysis: KNF's stock has a 52-week low of $58.72 and a high of $105.41, with the last trade at $79.66, indicating significant price volatility that reflects market interest and investor sentiment changes.
- Market Trend Observation: The current trading price of $79.66 places KNF's stock in the middle of its 52-week range, suggesting that market expectations for its future performance remain unclear, which could influence investor buying decisions.
- Technical Indicator Reference: The mention of KNF's 200-day moving average implies that market participants may be watching for a breakout above this technical level, potentially impacting short-term trading strategies and investor confidence.
- Investor Sentiment Assessment: Although the current stock price has not reached the 52-week high, the volatility in KNF's price may still attract the interest of short-term traders, prompting investors to closely monitor market dynamics to adjust their strategies.
See More
Headland Capital Fully Exits Knife River Position
- Exit Transaction: On January 28, Headland Capital disclosed in an SEC filing that it sold all 63,636 shares of Knife River, with an estimated transaction value of approximately $4.89 million, indicating a cautious outlook on the company's future prospects.
- Poor Market Performance: As of January 27, Knife River's shares were priced at $68.59, down 31.4% over the past year and significantly underperforming the S&P 500 by 47.5 percentage points, reflecting market pessimism regarding its performance.
- Financial Condition: Despite Knife River's recent record third-quarter revenue of $1.2 billion, up 9% year-over-year, the market's reaction remains tepid due to margin pressures in certain regions, highlighting the challenges the company faces.
- Future Growth Risks: Knife River's growth now hinges on flawless execution, margin recovery, and disciplined balance sheet management, and in the current market environment, investor patience is being tested, potentially leading to a reassessment of risk tolerance among investors.
See More
Paradice Investment Management Acquires Knife River Shares
- New Investment Position: Paradice Investment Management acquired 312,743 shares of Knife River in Q4 for $22 million, reflecting a strategic shift towards infrastructure assets with visible demand and pricing power.
- Significant Stake: This new holding represents 4.28% of Paradice's 13F reportable assets, indicating confidence in Knife River's growth potential, particularly driven by public infrastructure projects.
- Performance Growth: Knife River reported a 9% year-over-year revenue increase to $1.2 billion and an 11% rise in adjusted EBITDA to $272.8 million, showcasing the effectiveness of its acquisition strategy and pricing discipline.
- Strong Backlog: The company's backlog reached a record $995 million, up 32% year-over-year, with 87% tied to public works, and most expected to convert to revenue within 12 months, highlighting robust demand in the infrastructure sector.
See More
Knife River Acquires Texcrete to Expand Texas Market Presence
- Market Expansion: Knife River's acquisition of Texcrete assets enhances its market share in the Texas Triangle, with Texcrete operating six ready-mix plants and 85 trucks serving the rapidly growing Brazos and Montgomery counties.
- Resource Integration: This acquisition will integrate Knife River's existing operations with Texcrete's supply chain, expected to improve raw material efficiency and strengthen the company's competitive position in Texas.
- Employee Integration: Approximately 100 Texcrete employees have joined Knife River's Texas team, further enhancing the company's human resources and market responsiveness.
- Strategic Positioning: Knife River President Brian Gray stated that this acquisition aligns with the company's strategy of focusing on materials-based, vertically integrated operations in mid-size, high-growth markets, and is expected to balance seasonality in northern markets.
See More
Knife River Secures $112 Million Texas Highway Project
- Project Scale: Knife River Corporation has been awarded a $112 million 'Big 6' project in Texas, expected to supply approximately 928,000 tons of hot-mix asphalt, significantly enhancing the region's transportation infrastructure.
- Market Positioning: The project will expand State Highway 6 from four to six lanes, improving capacity for commuters, freight, and emergency evacuations, aligning with the demands of this high-growth market.
- Business Integration: As a subcontractor to Fluor Corporation, Knife River leverages its upgraded asphalt plant and internal access to high-quality aggregates to ensure the supply of higher-margin materials for the project.
- Long-term Impact: This project not only supports infrastructure development in Texas but also provides year-round employment opportunities for the company's team, further solidifying its position in mid-sized high-growth markets.
See More
Knife River Secures $112 Million Project in Texas
Project Overview: Knife River Corp. has secured a $112 million contract for the materials and paving of the State Highway 6 improvement project in Texas, which is part of a larger $671 million project by the Texas Department of Transportation.
Project Details: The project, expected to be completed by 2030, involves providing approximately 928,000 tons of hot-mix asphalt, along with sand, MSE backfill, and base course materials as needed.
Subcontractor Role: Knife River is subcontracted by Fluor Corporation, indicating a collaborative effort in the execution of the highway improvements.
Market Performance: Following the announcement, Knife River's shares were trading at $74.43, reflecting a slight increase of 0.51% in pre-market activity on the New York Stock Exchange.
See More
