BISMARCK, N.D. - Knife River Corporation (NYSE: KNF), a construction materials company, announced the appointment of Patricia Chiodo to its board of directors. Chiodo, who brings a wealth of financial experience, will contribute to the company's Audit and Compensation committees.
Chiodo's professional background includes serving as the chief financial officer of Verra Mobility (NASDAQ:VRRM) Corporation until her retirement in 2022. Her career also includes a tenure as CFO of RSC Holdings. She is currently a member of the Audit Committee for UNS Energy Corporation and has previously served on the Audit Committee for Embark Technology, Inc.
Karen Fagg, chair of Knife River's board, expressed confidence in Chiodo's abilities, citing her extensive experience in corporate strategy, mergers and acquisitions, risk management, and capital markets. Fagg highlighted the decision to expand the board and praised Chiodo's financial expertise and history with public companies, which are expected to be beneficial as Knife River pursues growth.
Chiodo is a University of Arizona alumnus, where she earned a bachelor's degree in accounting.
Knife River Corporation is part of the S&P MidCap 400 index and specializes in the production and distribution of construction materials such as aggregates, ready-mix concrete, and asphalt. The company also offers integrated contracting services.
The information regarding Chiodo's appointment and her anticipated contributions to Knife River's growth is based on a press release statement. However, it should be noted that forward-looking statements carry risks and uncertainties, and actual results may differ from those projected. Knife River has expressed that these statements are made in good faith and have a reasonable basis but acknowledges the potential for variation in actual outcomes.
In other recent news, Knife River Corp. has been the focus of an optimistic outlook from DA Davidson, which maintained its Buy rating on the company while increasing the stock's price target to $90.00, up from the previous $84.00. The firm's raised target is due to a strong first-quarter backlog and award activity, as well as an effective capital deployment strategy that is beginning to yield results. The valuation also takes into consideration Knife River's estimated EBITDA for 2024 and 2025 and the company's cash position at the end of the first quarter, which is expected to grow in the subsequent quarters.
DA Davidson's analysis indicates that Knife River's management is successfully executing its strategy, particularly in the area of mergers and acquisitions, which could significantly impact future results. The firm also noted that the company's focus on price realizations across its product lines and margin progression, especially in its Aggregates and Contracting Services divisions, will be key factors to monitor. Corporate developments, including mergers and acquisitions, along with the pace of infrastructure lettings in the company's core markets, are expected to serve as catalysts in the coming months and quarters.
These recent developments reflect DA Davidson's confidence in Knife River's potential for growth and profitability. The firm's maintained Buy rating indicates a positive outlook for the company's future performance.
InvestingPro Insights
As Knife River Corporation (NYSE: KNF) welcomes Patricia Chiodo to its board of directors, the company's financial health and market performance provide additional context to this strategic appointment. Knife River's stock has been noted for its low price volatility, indicating a steady investment environment. This stability, coupled with a high return over the last year of 50.51%, showcases the company's robust market presence and potential for continued growth.
On the financial side, Knife River's P/E ratio stands at 22.59, with an adjusted figure for the last twelve months as of Q1 2024 at 21.08. This is particularly notable when paired with a PEG ratio of 0.25 during the same period, suggesting that the company is trading at a low P/E ratio relative to near-term earnings growth. This aligns well with the financial acumen that Chiodo brings to the board, potentially aiding in strategic decisions that capitalize on the company's valuation metrics.
Furthermore, Knife River's liquid assets have been reported to exceed short-term obligations, which is a reassuring sign of financial stability. With Chiodo's background in risk management, this metric may be of particular interest as it reflects the company's ability to manage and mitigate financial risks effectively.
InvestingPro Tips also indicate that analysts predict the company will be profitable this year, a sentiment supported by the company's profitability over the last twelve months. Knife River does not pay a dividend to shareholders, which may be an indicator of the company's strategy to reinvest earnings into growth and expansion—a strategy that Chiodo's experience could influence positively.
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