Zacks Investment Research Lowers Aecom (ACM) to Hold

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Zacks Investment Research downgraded shares of Aecom (NYSE:ACM) from a buy rating to a hold rating in a research report released on Wednesday morning.

According to Zacks, “AECOM has been witnessing robust prospects across most of its business segments. Also, favorable infrastructure spending trend in the United States is supplementing core revenue growth. Going forward, the company remains optimistic that favorable political climate will continue to unlock growth opportunities of the infrastructure and defense markets. Additionally, an increase in the proportion of higher margin work is benefiting AECOM’s segments. However, AECOM’s shares have underperformed its industry in the past year. Earnings estimates have remained stable over the past 60 days for fiscal 2018, limiting the upside potential for the stock. Dependence on global, political and economic conditions remain a major concern for the company.”

Other equities research analysts have also recently issued reports about the stock. Citigroup cut their price objective on shares of Aecom from $45.00 to $42.00 and set a buy rating on the stock in a research note on Wednesday, August 8th. Argus cut shares of Aecom from a buy rating to a hold rating in a research report on Wednesday, August 15th. Credit Suisse Group dropped their price target on shares of Aecom from $38.00 to $36.00 and set a neutral rating on the stock in a research report on Wednesday, August 8th. Finally, ValuEngine cut shares of Aecom from a hold rating to a sell rating in a research report on Monday, October 8th. Two equities research analysts have rated the stock with a sell rating, five have given a hold rating and three have issued a buy rating to the company. Aecom has an average rating of Hold and an average target price of $35.67.

Shares of NYSE ACM opened at $30.75 on Wednesday. Aecom has a fifty-two week low of $30.37 and a fifty-two week high of $39.90. The company has a current ratio of 1.20, a quick ratio of 1.20 and a debt-to-equity ratio of 0.87. The stock has a market cap of $5.25 billion, a P/E ratio of 10.47, a P/E/G ratio of 2.19 and a beta of 1.57.

Aecom (NYSE:ACM) last issued its quarterly earnings data on Tuesday, August 7th. The construction company reported $0.62 earnings per share for the quarter, beating analysts’ consensus estimates of $0.61 by $0.01. Aecom had a net margin of 0.72% and a return on equity of 9.86%. The business had revenue of $5.15 billion for the quarter, compared to analysts’ expectations of $4.88 billion. During the same period in the previous year, the business earned $0.78 earnings per share. As a group, analysts predict that Aecom will post 2.68 earnings per share for the current fiscal year.

In other Aecom news, insider Lara Poloni sold 1,607 shares of the business’s stock in a transaction dated Monday, September 17th. The shares were sold at an average price of $32.49, for a total value of $52,211.43. Following the sale, the insider now directly owns 2,288 shares in the company, valued at $74,337.12. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. 0.74% of the stock is currently owned by insiders.

A number of institutional investors and hedge funds have recently modified their holdings of ACM. Bank of America Corp DE increased its stake in Aecom by 106.4% in the 2nd quarter. Bank of America Corp DE now owns 2,403,765 shares of the construction company’s stock worth $79,395,000 after purchasing an additional 1,239,397 shares in the last quarter. Luminus Management LLC increased its stake in Aecom by 19.1% in the 2nd quarter. Luminus Management LLC now owns 2,434,759 shares of the construction company’s stock worth $80,420,000 after purchasing an additional 389,900 shares in the last quarter. BlackRock Inc. increased its stake in Aecom by 2.9% in the 2nd quarter. BlackRock Inc. now owns 13,294,925 shares of the construction company’s stock worth $439,132,000 after purchasing an additional 375,863 shares in the last quarter. Formula Growth Ltd. increased its stake in Aecom by 150.0% in the 2nd quarter. Formula Growth Ltd. now owns 300,049 shares of the construction company’s stock worth $9,911,000 after purchasing an additional 180,049 shares in the last quarter. Finally, Putnam Investments LLC purchased a new position in Aecom in the 2nd quarter worth about $3,756,000. 84.41% of the stock is currently owned by hedge funds and other institutional investors.

Aecom Company Profile

AECOM, together with its subsidiaries, engages in designing, building, financing, and operating infrastructure assets worldwide. The company operates through four segments: Design and Consulting Services (DCS), Construction Services (CS), Management Services (MS), and AECOM Capital (ACAP). The DCS segment provides planning, consulting, architectural and engineering design, program management, and construction management services for industrial, commercial, institutional, and government clients, such as transportation, facilities, environmental, and energy/power markets.

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