Astec Industries, Inc. (NASDAQ: ASTE) Investor Securities Class Action Lawsuit 02/01/2019

If you purchased a significant amount of shares of Astec Industries, Inc. (NASDAQ: ASTE) between July 26, 2016 and October 22, 2018, and / or if you purchased any NASDAQ: ASTE shares prior to July 2016 and continue to hold any of those shares, you have certain options and for certain investors are short and strict deadlines running. Deadline: April 2, 2019. NASDAQ: ASTE investors should contact the Shareholders Foundation, Inc.

To have your information reviewed for options and to recieve notifications about this case, please use this form. You may also send an email to mail@shareholdersfoundation.com, or call us at (858) 779-1554.
Company Name(s): 
Astec Industries
Case Name: 
Astec Industries Shareholder Class Action Lawsuit 02/01/2019
Case Status: 
Lawsuit Filed
Affected Securities
NASDAQ: ASTE
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
02/01/2019
Class Period Begin: 
07/26/2016
Class Period End: 
10/22/2018
Court of Filing: 
U. S.District Court for the Eastern District of Tennessee
Deadline To File for Lead: 
04/02/2019
Summary: 

An investor in shares of Astec Industries, Inc. (NASDAQ: ASTE) filed a lawsuit in the U.S. District Court for the Eastern District of Tennessee over alleged violations of Federal Securities Laws by Astec Industries, Inc. in connection with certain allegedly false and misleading statements made between July 26, 2016 and October 22, 2018.

Chattanooga, TN based Astec Industries, Inc. designs, engineers, manufactures, and markets equipment and components for the road building, aggregate processing, geothermal, water, oil and gas, and wood processing industries in the United States and internationally. Astec Industries, Inc. reported that its annual Total Revenue rose from over $1.14 billion in 2016 to over $1.18 billion in 2017 and that its Net Income declined from $55.15 million in 2016 to $37.79 million in 2017.

On July 24, 2018, Astec Industries, Inc announced its financial results for the second quarter of 2018 and disclosed that Astec Industries, Inc was exiting from its contractual obligations concerning the Highland wood pellet plant in Arkansas “driven by unresolved issues, which inhibited the plant’s ability to meet contractual provisions by the date required by the Company’s sales contract with Highland.” Therefore, Astec Industries, Inc “agreed to pay $68 million in cash in the aggregate over the course of the next 120 days and forgive approximately $7 million in receivables.”

Then, before the market opened on October 23, 2018, Astec Industries, Inc reported third quarter 2018 results that fell well short of the low end of the Company’s guidance and the market’s expectations. Astec Industries, Inc reported a 1.2% decrease in domestic sales and a 20.2% decrease in backlog, with domestic backlog contracting by 28.1%, which was being dragged down by the Company’s pellet business. For 2018, Astec Industries, Inc cut its core revenue growth forecast to 1% to 3%, down substantially from 7% to 12%. The Company also reported earnings per share of $0.30 for the quarter, widely missing the consensus estimate of $0.59. Revenue came in light as well, with Astec Industries, Inc reporting $256.6 million, below analysts’ expectations of $276.8 million.

Shares of Astec Industries, Inc. (NASDAQ: ASTE) declined from $63.69 per share in early July 2018 to as low as $28.89 per share in December 2018.

On February 1, 2019, NASDAQ: ASTE shares closed at $36.65 per share.

According to the complaint the plaintiff alleges on behalf of purchasers of Astec Industries, Inc. (NASDAQ: ASTE) common shares between July 26, 2016 and October 22, 2018, that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that between July 26, 2016 and October 22, 2018, the defendants made false and misleading statements and/or failed to disclose adverse information regarding Astec’s business, operations and prospects, including that its wood pellet plants suffered from significant and costly problems that prevented them from running at their promised production capacity, posing a threat to the Company’s pellet plant business, its overall financial performance, and its financial outlook. As a result of this information being withheld from the market, the price of Astec stock was artificially inflated to a high of nearly $70 per share between July 26, 2016 and October 22, 2018.