Zacks Investment Research Lowers Emcor Group (EME) to Hold
Emcor Group (NYSE:EME) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report released on Tuesday.
According to Zacks, “EMCOR has a decent earnings surprise history, beating estimates thrice over the trailing four quarters. The company is enjoying impressive organic growth driven by U.S. Construction segments, along with solid contribution from its recent acquisitions. Encouraged by its solid top-line performance in recent quarters, accretive acquisitions and increasing traction in the U.S. construction space, EMCOR’s management raised its guidance for earnings. Moreover, over the past six months, EMCOR shares have been outperforming the industry average. However, volatility in oil prices remains a primary challenge for EMCOR’s future growth as the company’s business is primarily downstream focused. Reduction in capital spending as a result of crude oil price volatility is adding to EMCOR’s concerns. Also, stiff competition, as well as large number of fixed-price contracts could exert pressure on its margins.”
A number of other brokerages have also commented on EME. Stifel Nicolaus reaffirmed a “buy” rating and set a $88.00 price objective (up previously from $75.00) on shares of Emcor Group in a research report on Wednesday, November 1st. ValuEngine lowered shares of Emcor Group from a “buy” rating to a “hold” rating in a research report on Tuesday, November 14th. Finally, KeyCorp reaffirmed a “hold” rating on shares of Emcor Group in a research report on Friday, November 17th. One analyst has rated the stock with a sell rating, five have given a hold rating and one has given a buy rating to the company. The stock currently has an average rating of “Hold” and a consensus target price of $83.33.
Emcor Group (NYSE EME) traded down $0.71 during mid-day trading on Tuesday, reaching $81.75. 175,400 shares of the company’s stock were exchanged, compared to its average volume of 353,083. The company has a debt-to-equity ratio of 0.25, a current ratio of 1.44 and a quick ratio of 1.41. Emcor Group has a one year low of $59.76 and a one year high of $84.11. The company has a market capitalization of $4,810.00, a PE ratio of 22.58, a price-to-earnings-growth ratio of 1.44 and a beta of 1.01.
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 the Zacks’ consensus estimate of $0.82 by $0.27. Emcor Group had a net margin of 2.82% and a return on equity of 13.94%. The company had revenue of $1.87 billion during the quarter, compared to analysts’ expectations of $1.93 billion. During the same period in the prior year, the company earned $0.85 earnings per share. The business’s quarterly revenue was down 2.9% compared to the same quarter last year. equities analysts forecast that Emcor Group will post 3.79 earnings per share for the current fiscal year.
Emcor Group declared that its Board of Directors has approved a share buyback plan on Thursday, October 26th that authorizes the company to buyback $100.00 million in shares. This buyback authorization authorizes the construction company to reacquire up to 2.4% of its shares through open market purchases. Shares buyback plans are typically a sign that the company’s board believes its shares are undervalued.
In other news, Director Jerry E. Ryan sold 13,000 shares of the company’s stock in a transaction dated Friday, October 27th. The shares were sold at an average price of $78.06, for a total transaction of $1,014,780.00. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Director William P. Reid sold 4,647 shares of the company’s stock in a transaction dated Wednesday, December 20th. The shares were sold at an average price of $82.90, for a total transaction of $385,236.30. The disclosure for this sale can be found here. 2.00% of the stock is currently owned by corporate insiders.
A number of large investors have recently bought and sold shares of the stock. Vanguard Group Inc. raised its position in Emcor Group by 1.3% in the second quarter. Vanguard Group Inc. now owns 4,982,822 shares of the construction company’s stock worth $325,777,000 after purchasing an additional 65,908 shares in the last quarter. Victory Capital Management Inc. raised its position in Emcor Group by 3.9% in the third quarter. Victory Capital Management Inc. now owns 2,202,317 shares of the construction company’s stock worth $152,797,000 after purchasing an additional 82,349 shares in the last quarter. State Street Corp raised its position in Emcor Group by 2.5% in the second quarter. State Street Corp now owns 2,059,368 shares of the construction company’s stock worth $134,642,000 after purchasing an additional 50,588 shares in the last quarter. Northern Trust Corp raised its position in Emcor Group by 2.1% in the second quarter. Northern Trust Corp now owns 1,611,590 shares of the construction company’s stock worth $105,366,000 after purchasing an additional 33,361 shares in the last quarter. Finally, Ruane Cunniff & Goldfarb Inc. raised its position in Emcor Group by 1.7% in the third quarter. Ruane Cunniff & Goldfarb Inc. now owns 1,441,346 shares of the construction company’s stock worth $100,001,000 after purchasing an additional 23,775 shares in the last quarter. 94.07% of the stock is 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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