EMCOR Group, Inc. (EME) Upgraded at Zacks Investment Research
Zacks Investment Research upgraded shares of EMCOR Group, Inc. (NYSE:EME) from a hold rating to a buy rating in a report released on Tuesday morning. The brokerage currently has $89.00 price target on the construction company’s stock.
According to Zacks, “EMCOR posted an impressive beat in third-quarter 2017 results, as its adjusted earnings from continuing operations exceeded the Zacks Consensus Estimate by over 32.9%. The robust bottom-line performance was driven by higher productivity, solid non-residential construction demand, strong project execution and improved margins. Encouraged by accretive acquisitions and increasing traction in the U.S. construction space, EMCOR’s management raised 2017 guidance for earnings. The U.S. Electrical Construction segment stands to benefit from the Ardent acquisition, going forward. In the past six months, EMCOR’s share price return has trumped the industry’s average return. However, macroeconomic issues like volatility in oil & gas prices, low levels of capital spending by customers and currency translation remain headwinds for EMCOR.”
Other equities analysts also recently issued research reports about the company. Stifel Nicolaus reiterated a buy rating and set a $88.00 price target (up previously from $75.00) on shares of EMCOR Group in a research note on Thursday, October 26th. BidaskClub downgraded EMCOR Group from a buy rating to a hold rating in a research note on Wednesday, July 19th. Finally, KeyCorp reiterated a hold rating on shares of EMCOR Group in a research note on Friday, August 25th. One investment analyst has rated the stock with a sell rating, three have assigned a hold rating and two have given a buy rating to the company’s stock. EMCOR Group currently has an average rating of Hold and a consensus target price of $83.33.
EMCOR Group (NYSE:EME) traded up $0.73 during midday trading on Tuesday, hitting $81.25. 257,504 shares of the stock were exchanged, compared to its average volume of 355,592. The company has a current ratio of 1.44, a quick ratio of 1.41 and a debt-to-equity ratio of 0.25. The company has a market cap of $4.77 billion, a price-to-earnings ratio of 22.30, a P/E/G ratio of 1.43 and a beta of 1.02.
EMCOR Group (NYSE:EME) last released its quarterly earnings results on Thursday, October 26th. The construction company reported $1.09 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.82 by $0.27. The business had revenue of $1.87 billion during the quarter, compared to the consensus estimate of $1.93 billion. EMCOR Group had a return on equity of 13.94% and a net margin of 2.82%. The company’s quarterly revenue was down 2.9% on a year-over-year basis. During the same quarter in the previous year, the business earned $0.85 EPS. equities analysts expect that EMCOR Group will post 3.79 earnings per share for the current fiscal year.
EMCOR Group declared that its board has approved a stock buyback program on Thursday, October 26th that permits the company to buyback $100.00 million in outstanding shares. This buyback authorization permits the construction company to reacquire up to 2.4% of its shares through open market purchases. Shares buyback programs are often an indication that the company’s leadership believes its shares are undervalued.
The business also recently declared a quarterly dividend, which was paid on Monday, October 30th. Shareholders of record on Tuesday, October 17th were paid a dividend of $0.08 per share. The ex-dividend date was Monday, October 16th. This represents a $0.32 dividend on an annualized basis and a yield of 0.39%. EMCOR Group’s dividend payout ratio (DPR) is currently 8.94%.
In other EMCOR Group news, Director Jerry E. Ryan sold 13,000 shares of EMCOR Group stock in a transaction that occurred on Friday, October 27th. The shares were sold at an average price of $78.06, for a total transaction of $1,014,780.00. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. 2.00% of the stock is owned by company insiders.
Several institutional investors have recently bought and sold shares of the business. FDx Advisors Inc. lifted its position in shares of EMCOR Group by 7.7% during the 3rd quarter. FDx Advisors Inc. now owns 14,194 shares of the construction company’s stock worth $985,000 after buying an additional 1,011 shares in the last quarter. Bessemer Group Inc. lifted its position in shares of EMCOR Group by 36.4% during the 3rd quarter. Bessemer Group Inc. now owns 31,100 shares of the construction company’s stock worth $2,158,000 after buying an additional 8,300 shares in the last quarter. Daiwa Securities Group Inc. lifted its position in shares of EMCOR Group by 49.9% during the 3rd quarter. Daiwa Securities Group Inc. now owns 60,100 shares of the construction company’s stock worth $4,170,000 after buying an additional 20,000 shares in the last quarter. Train Babcock Advisors LLC lifted its position in shares of EMCOR Group by 4.4% during the 3rd quarter. Train Babcock Advisors LLC now owns 43,680 shares of the construction company’s stock worth $3,030,000 after buying an additional 1,835 shares in the last quarter. Finally, Prudential Financial Inc. lifted its position in shares of EMCOR Group by 19.8% during the 3rd quarter. Prudential Financial Inc. now owns 1,102,699 shares of the construction company’s stock worth $76,506,000 after buying an additional 182,340 shares in the last quarter. 93.10% of the stock is currently owned by hedge funds and other institutional investors.
About EMCOR Group
EMCOR Group, Inc is an electrical and mechanical construction, and facilities services firm in the United States. The Company provides building services and industrial services. Its segments are United States electrical construction and facilities services; United States mechanical construction and facilities services; United States building services; United States industrial services, and United Kingdom building services.
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