KNF

Stock Performance Overview: KNF's stock has a 52-week low of $66.13 and a high of $108.83, with the last trade recorded at $89.66.

Author's Perspective Disclaimer: The opinions expressed in the article are solely those of the author and do not necessarily represent Nasdaq, Inc.

Acquisition Announcement: Knife River Corporation has completed its acquisition of Strata Corporation for $454 million, enhancing its construction materials and contracting services in North Dakota and northwestern Minnesota.

Operational Integration and Growth: The acquisition is expected to improve Knife River's Adjusted EBITDA margin within the first year, leveraging Strata's extensive resources, including aggregates, ready-mix plants, and a skilled workforce.

Wells Fargo Coverage: Wells Fargo has given Knife River (KNF) an Overweight rating with a price target of $102, citing strong growth potential due to aging infrastructure and favorable industry conditions.

Company Strategy: Knife River is actively working to enhance its profit margins through the EDGE value framework, positioning itself well within a competitive and structurally positive industry.

ETF Analysis: The Avantis U.S. Large Cap Value ETF (AVLV) has an implied analyst target price of $78.49 per unit, indicating a potential upside of 17.70% from its current trading price of $66.69.

Stock Performance Insights: Notable underlying holdings like Olin Corp., Timken Co., and Knife River Corp show significant upside potential according to analysts, raising questions about the validity of these targets amidst market conditions.

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Analyst Rating: Loop Capital Markets analyst Garik Shmois has maintained a Buy rating on Knife River Corporation with a price target of $121.00, while the current consensus is a Strong Buy with an average price target of $119.00.

Analyst Performance: Shmois is recognized as a 5-star analyst with a 72.25% success rate and an average return of 16.9%, focusing on the Industrials sector.

Analyst Conference Call: Analyst Diffely will share insights on various stocks (ACA, CRH, EXP, etc.) during a conference call scheduled for February 11 at 11 am, with a webcast link provided.

Investment Tools: TipRanks offers a Smart Score tool to help investors identify top-performing stocks and compare their picks against Wall Street analysts' recommendations.

Knife River Corp Analysis: Knife River Corp (KNF) has received a 57% rating using the Value Investor model based on Benjamin Graham's strategy, indicating it is a mid-cap growth stock in the Construction - Raw Materials industry with strong fundamentals and valuation metrics.

About Benjamin Graham: Benjamin Graham, known as the "Father of Value Investing," significantly influenced the investment world and mentored notable investors like Warren Buffett, achieving impressive returns during his investment career.

Earnings Conference Call Announcement: Knife River Corporation will host its fourth quarter and full-year 2024 earnings conference call on February 13, 2025, at 11 a.m. EST, with financial results released that morning before the market opens.

Company Overview: Knife River is an aggregates-led construction materials company that specializes in mining and marketing construction materials, as well as providing contracting services for various projects.

Acquisition Announcement: Knife River has agreed to acquire Strata for $454 million, based on projected 2025 adjusted EBITDA, with the deal expected to close in the first half of 2025 pending regulatory approval.

Financing Details: The acquisition will be financed through Knife River's cash reserves and proceeds from long-term debt issuance.

Acquisition Announcement: Knife River Corporation has agreed to acquire Strata Corporation for $454 million, enhancing its construction materials and contracting services in North Dakota and northwestern Minnesota. The deal is expected to close in the first half of 2025, pending regulatory approval.

Company Background: Strata, founded in 1910, operates over 75 aggregate locations and various plants, employing over 900 people during peak seasons. The acquisition aligns with Knife River's growth strategy and aims to improve its EBITDA margin within the first year.

Acquisition Announcement: Knife River Corp. has agreed to acquire Strata Corp. for $454 million, with expectations of enhancing its adjusted EBITDA margin within the first year post-acquisition.

Company Profile: Strata Corp., founded in 1910 and majority-owned by CEO James Bradshaw, operates over 75 aggregates locations and is expected to support Knife River's growth in its Central Segment.

Stock Performance: Knife River Corp's shares have surpassed the average analyst 12-month target price of $104.00, currently trading at $106.51, prompting analysts to consider adjusting their target prices based on the company's performance.

Analyst Opinions: There is a range of analyst targets for Knife River Corp, from a low of $76.00 to a high of $120.00, indicating differing views on the stock's valuation and future potential, which investors should assess carefully.

New Leadership Appointment: Knife River Corporation has appointed Glenn R. Pladsen as Vice President and Chief Excellence Officer, effective January 1, 2025, to lead the company's "Competitive EDGE" strategy focused on long-term growth and operational excellence.

Strategic Goals and Initiatives: Pladsen's expanded role aims to enhance safety performance and process improvements within the company, building on the success of existing initiatives like Process Improvement Teams and training programs, as emphasized by CEO Brian Gray.

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Earnings Conference Call Overview: Knife River Corporation held its Q3 2024 earnings conference call on November 4, 2024, featuring CFO Nathan Ring and CEO Brian Gray discussing financial expectations and operational results.

Forward-Looking Statements Disclaimer: The call included forward-looking statements about the company's future, with a reminder that actual results may vary due to risks and uncertainties, as detailed in their SEC filings.

Quarterly Performance: Knife River Corporation reported a net income of $148.1 million for the third quarter, slightly up from $146.7 million a year ago, with revenue increasing to $1.105 billion.

Revenue Outlook Adjustment: The company has narrowed its full-year revenue forecast to between $2.850 billion and $2.950 billion, down from the previous estimate of $2.8 billion to $3 billion.

Stock Performance: Knife River Corp's shares have surpassed the average analyst 12-month target price of $94.17, currently trading at $95.75, prompting analysts to consider adjusting their target prices or downgrading based on valuation.

Analyst Insights: The average target price is influenced by various analysts, with estimates ranging from $76.00 to $110.00, indicating a diverse outlook on the stock's future performance and encouraging investors to evaluate whether to hold or sell their shares.

Fluor Corporation Contract Approval: Fluor Corporation, in a joint venture with Amentum and led by BWX Technologies, received approval for a $45 billion contract from the U.S. Department of Energy to manage environmental operations at the Hanford Site over a 10-year period, following the dismissal of a protest against the contract.

Business Growth and Stock Performance: Fluor has seen significant growth in new awards, with a backlog increase of 27% year-over-year, and its stock has risen 37.4% in the past six months, outperforming industry averages, indicating strong demand for its services across various sectors.

Earnings Conference Call Announcement: Knife River Corporation will host its third quarter 2024 earnings conference call on November 4, 2024, at 11 a.m. EST, with financial results released that morning before the market opens.

Company Overview: Knife River Corporation is involved in mining aggregates and providing construction materials and contracting services, focusing on publicly funded DOT projects and various private sector projects.