Zacks Investment Research lowered shares of Dycom Industries (NYSE:DY) from a buy rating to a hold rating in a research report report published on Thursday morning.
According to Zacks, “Over the past one year, Dycom’s shares have significantly outperformed the industry average. Over the past few quarters, rise in demand for network bandwidth, expanded core market share and surge in wireless carriers services are proving conducive to the growth of the company. Dycom remains optimistic about fiber deep cable capacity projects, 1 gigabit deployments and initial phases of fiber deployments for newly emerging wireless technologies. However, initiations of large-scale network deployments, particularly those occurring during periods of customer M&A activity, remain vulnerable to timing uncertainty. Further, the company’s margins will likely suffer due to timing volatility, customer spending modulations and an adverse mix of work activities. This apart poor contribution from acquired businesses might hamper growth of the company.”
Several other equities research analysts also recently weighed in on the stock. Stephens increased their target price on shares of Dycom Industries from $105.00 to $120.00 and gave the company an overweight rating in a research note on Thursday, November 16th. Stifel Nicolaus reissued a buy rating and issued a $126.00 target price (up previously from $120.00) on shares of Dycom Industries in a research note on Monday, December 11th. B. Riley reissued a buy rating and issued a $119.00 target price (up previously from $98.00) on shares of Dycom Industries in a research note on Friday, November 17th. Wells Fargo raised their price target on shares of Dycom Industries from $108.50 to $125.00 and gave the stock an outperform rating in a research note on Thursday, February 15th. Finally, DA Davidson raised their price target on shares of Dycom Industries to $100.00 and gave the stock a neutral rating in a research note on Tuesday, November 21st. One investment analyst has rated the stock with a sell rating, two have issued a hold rating and ten have assigned a buy rating to the stock. Dycom Industries currently has a consensus rating of Buy and a consensus target price of $122.00.
Dycom Industries (NYSE:DY) last announced its earnings results on Wednesday, February 28th. The construction company reported $0.12 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $0.11 by $0.01. Dycom Industries had a net margin of 5.08% and a return on equity of 18.67%. The business had revenue of $655.13 million for the quarter, compared to the consensus estimate of $655.72 million. During the same quarter in the prior year, the firm posted $0.82 earnings per share. The business’s revenue for the quarter was down 6.6% on a year-over-year basis. sell-side analysts expect that Dycom Industries will post 5.71 EPS for the current year.
In related news, Director Patricia Higgins sold 2,604 shares of the firm’s stock in a transaction dated Wednesday, March 7th. The shares were sold at an average price of $109.08, for a total value of $284,044.32. Following the transaction, the director now owns 30,246 shares of the company’s stock, valued at approximately $3,299,233.68. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. Company insiders own 5.35% of the company’s stock.
A number of institutional investors have recently modified their holdings of the business. Elkfork Partners LLC bought a new position in Dycom Industries during the 4th quarter worth about $324,000. Rehmann Capital Advisory Group bought a new position in Dycom Industries during the 4th quarter worth about $235,000. Xact Kapitalforvaltning AB bought a new position in Dycom Industries during the 4th quarter worth about $318,000. Envestnet Asset Management Inc. grew its holdings in Dycom Industries by 27.3% during the 4th quarter. Envestnet Asset Management Inc. now owns 51,516 shares of the construction company’s stock worth $5,740,000 after acquiring an additional 11,034 shares in the last quarter. Finally, Meitav Dash Investments Ltd. bought a new position in Dycom Industries during the 4th quarter worth about $13,186,000.
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Dycom Industries Company Profile
Dycom Industries, Inc is a provider of specialty contracting services throughout the United States and in Canada. The Company, through its subsidiaries, provides program management, engineering, construction, maintenance and installation services for telecommunications providers, underground facility locating services for various utilities, including telecommunications providers, and other construction and maintenance services for electric and gas utilities.
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