KBR, Inc. (KBR) Rating Lowered to Sell at Zacks Investment Research
KBR, Inc. (NYSE:KBR) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research note issued to investors on Wednesday.
According to Zacks, “Over the past one year, KBR’s shares have underperformed the industry’s average gain significantly. Prolonged softness in the Engineering & Construction sector, coupled with volatility in oil and gas prices, may pose a threat to KBR's growth. Sluggish activities in several projects approaching completion add to the company’s concerns. Moreover, long-cycle nature of the contracts, volatility in material and equipment pricing and stiff competition pose as major concerns. Also, the company continues to incur high general and administrative expenses which are about $4-$5 million above the normative level. However, on the flip side, the company’s Government Services business is experiencing stellar growth and the company remains confident that recent acquisitions will continue to accelerate growth momentum of this business.”
A number of other brokerages have also weighed in on KBR. TheStreet upgraded KBR from a “d+” rating to a “c-” rating in a research report on Thursday, August 3rd. BidaskClub upgraded KBR from a “sell” rating to a “hold” rating in a research report on Saturday, August 5th. Finally, KeyCorp set a $20.00 price objective on KBR and gave the stock a “buy” rating in a research report on Friday, August 25th. Three equities research analysts have rated the stock with a sell rating, one has given a hold rating and six have assigned a buy rating to the company. The company currently has an average rating of “Hold” and an average price target of $19.00.
Shares of KBR (NYSE KBR) traded down 0.22% during trading on Wednesday, reaching $17.84. The company’s stock had a trading volume of 406,562 shares. The stock’s 50 day moving average price is $16.92 and its 200-day moving average price is $15.47. KBR has a 52-week low of $13.17 and a 52-week high of $18.28. The stock’s market cap is $2.50 billion.
KBR (NYSE:KBR) last issued its quarterly earnings data on Wednesday, August 2nd. The construction company reported $0.54 earnings per share for the quarter, topping the Zacks’ consensus estimate of $0.49 by $0.05. The firm had revenue of $1.09 billion for the quarter, compared to analyst estimates of $1.10 billion. KBR had a positive return on equity of 8.74% and a negative net margin of 0.81%. The business’s quarterly revenue was up 8.4% compared to the same quarter last year. During the same period last year, the company earned $0.35 EPS. Equities analysts anticipate that KBR will post $1.43 EPS for the current year.
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Several hedge funds and other institutional investors have recently added to or reduced their stakes in KBR. Quantbot Technologies LP purchased a new position in KBR during the first quarter valued at $109,000. OLD Mutual Customised Solutions Proprietary Ltd. raised its stake in KBR by 322.2% during the first quarter. OLD Mutual Customised Solutions Proprietary Ltd. now owns 7,600 shares of the construction company’s stock valued at $114,000 after buying an additional 5,800 shares during the last quarter. Shelton Capital Management purchased a new position in KBR during the second quarter valued at $160,000. GSA Capital Partners LLP purchased a new position in KBR during the second quarter valued at $162,000. Finally, Paragon Capital Management Ltd purchased a new position in KBR during the second quarter valued at $172,000. Institutional investors own 99.74% of the company’s stock.
KBR Company Profile
KBR, Inc is a provider of professional services and technologies across the asset and program life-cycle within the government services and hydrocarbons industries. The Company operates through business segments, including Technology & Consulting (T&C), Engineering & Construction (E&C), Government Services (GS), Non-strategic Business and Other.
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