Securities Law Firm Opens Investigation Into Cardinal Infrastructure After 36% Plunge
CDNL sits 79% above its 52-week low of $21.98.
Summary
Hagens Berman, a national securities litigation firm, has opened an investigation into Cardinal Infrastructure Group following the stock's 36% single-day plunge after Q2 results. The firm is probing whether Cardinal misled investors about cost pressures and equipment dependencies while touting its $866 million backlog. The August 11 report revealed adjusted EPS of $0.26, missing consensus by 45%, with gross margin collapsing to 15.9% from 21.3% and EBITDA margin to 12.4% from 18.6%. Management cut full-year EBITDA margin guidance to 16-18% from over 20%, citing labor shortages and subcontractor costs. This follows the June secondary offering at $73 per share, which raised over $318 million just weeks before the margin collapse. The investigation adds legal risk to an already damaged equity story, and any subsequent class action filing could pressure the stock further.
At the time of this announcement, CDNL was trading at $39.33 on NASDAQ in the Industrial Applications And Services sector, with a market capitalization of approximately $1.9B. The 52-week trading range was $21.98 to $96.40. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: PR Newswire.