Dycom Industries (NYSE:DY) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a note issued to investors on Thursday.
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.”
A number of other analysts also recently commented on the stock. B. Riley boosted their target price on shares of Dycom Industries from $132.00 to $137.00 and gave the stock a “buy” rating in a report on Thursday, March 1st. Wells Fargo boosted their target price on shares of Dycom Industries from $108.50 to $125.00 and gave the stock an “outperform” rating in a report on Thursday, February 15th. Craig Hallum restated a “buy” rating and set a $129.00 price target (up previously from $114.00) on shares of Dycom Industries in a report on Tuesday, February 13th. Canaccord Genuity restated a “buy” rating and set a $125.00 price target (up previously from $110.00) on shares of Dycom Industries in a report on Tuesday, February 13th. Finally, KeyCorp boosted their price target on shares of Dycom Industries from $118.00 to $123.00 and gave the company an “overweight” rating in a report on Friday, February 9th. One analyst has rated the stock with a sell rating, two have given a hold rating and ten have issued a buy rating to the stock. The company currently has a consensus rating of “Buy” and a consensus target price of $122.00.
Dycom Industries (NYSE:DY) last released its earnings results on Wednesday, February 28th. The construction company reported $0.12 EPS for the quarter, topping analysts’ consensus estimates 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 period in the previous year, the firm earned $0.82 EPS. The business’s revenue for the quarter was down 6.6% on a year-over-year basis. analysts predict that Dycom Industries will post 5.71 earnings per share for the current fiscal year.
In other Dycom Industries news, Director Patricia Higgins sold 2,604 shares of the company’s stock in a transaction that occurred on 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 in the company, valued at approximately $3,299,233.68. The transaction was disclosed in a document filed with the SEC, which can be accessed through this link. 5.35% of the stock is currently owned by corporate insiders.
A number of institutional investors have recently added to or reduced their stakes in DY. Fred Alger Management Inc. acquired a new position in Dycom Industries in the 4th quarter valued at approximately $28,076,000. SG Capital Management LLC acquired a new position in Dycom Industries in the 3rd quarter valued at approximately $15,925,000. Peregrine Capital Management LLC acquired a new position in Dycom Industries in the 4th quarter valued at approximately $18,241,000. Alliancebernstein L.P. grew its position in Dycom Industries by 15.1% in the fourth quarter. Alliancebernstein L.P. now owns 1,025,193 shares of the construction company’s stock worth $114,237,000 after acquiring an additional 134,410 shares in the last quarter. Finally, Meitav Dash Investments Ltd. bought a new stake in Dycom Industries in the fourth quarter worth approximately $13,186,000.
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About Dycom Industries
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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