Construction Partners rises ahead of S&P SmallCap inclusion
Civil infrastructure company Construction Partners' ROAD.O shares were up 2.9% before the bell on Friday at $105.41 as it's set to join the S&P SmallCap 600 index .SPCY next week.
ROAD will replace Molina Healthcare MOH.N in SPCY effective Wednesday, Jul. 22, S&P Dow Jones Indices said late Thursday.
MOH is moving to the S&P MidCap 400 index .IDX to replace National Storage Affiliates Trust NSA.N, which is being bought by Public Storage PSA.N in a $10.5 billion deal.
Shares of health insurer MOH closed at $224.82 on Thursday and have yet to trade premarket.
Stephens analyst Melissa Roberts said in a note she expects passive funds will need to buy 6.5 million ROAD shares, implying about 10 days of purchasing demand.
Dothan, Alabama-based ROAD has about 56.5 million shares outstanding for a $5.8 billion market cap.
Through Thursday, ROAD shares were down about 6% year to date and about 32% below their record intraday high of $151 reached on May 8.
Five of seven brokers rate the stock "strong buy" or "buy" and two rate it "hold"; median price target is $140, according to LSEG data.
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