Emcor Group (NYSE:EME) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a note issued to investors on Tuesday, January 2nd.
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 analysts have also commented on EME. Stifel Nicolaus reissued a “buy” rating and issued a $88.00 target price (up previously from $75.00) on shares of Emcor Group in a report on Wednesday, November 1st. KeyCorp reissued a “hold” rating on shares of Emcor Group in a report on Friday, November 17th. Finally, ValuEngine lowered Emcor Group from a “buy” rating to a “hold” rating in a report on Tuesday, November 14th. One analyst has rated the stock with a sell rating, five have assigned a hold rating and one has given a buy rating to the stock. The company has a consensus rating of “Hold” and an average price target of $83.33.
Emcor Group (NYSE:EME) traded down $0.59 during mid-day trading on Tuesday, reaching $81.83. The company had a trading volume of 357,700 shares, compared to its average volume of 342,314. Emcor Group has a one year low of $59.76 and a one year high of $84.73. 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 $4,820.00, a price-to-earnings ratio of 22.60, a PEG ratio of 1.37 and a beta of 1.02.
Emcor Group (NYSE:EME) last posted its quarterly earnings data on Thursday, October 26th. The construction company reported $1.09 earnings per share for the quarter, beating the Zacks’ consensus estimate of $0.82 by $0.27. The company had revenue of $1.87 billion during the quarter, compared to analyst estimates of $1.93 billion. Emcor Group had a return on equity of 13.94% and a net margin of 2.82%. The firm’s revenue for the quarter was down 2.9% on a year-over-year basis. During the same quarter last year, the company earned $0.85 EPS. equities research analysts predict that Emcor Group will post 3.79 earnings per share for the current year.
Emcor Group announced that its Board of Directors has approved a stock buyback program on Thursday, October 26th that permits the company to repurchase $100.00 million in shares. This repurchase authorization permits the construction company to reacquire up to 2.4% of its shares through open market purchases. Shares repurchase programs are typically a sign that the company’s board of directors believes its stock is undervalued.
In related news, Director William P. Reid sold 4,647 shares of Emcor Group stock in a transaction on Wednesday, December 20th. The stock was sold at an average price of $82.90, for a total value of $385,236.30. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Jerry E. Ryan sold 13,000 shares of Emcor Group stock in a transaction on Friday, October 27th. The stock was sold at an average price of $78.06, for a total value of $1,014,780.00. The disclosure for this sale can be found here. Insiders own 2.00% of the company’s stock.
A number of hedge funds and other institutional investors have recently added to or reduced their stakes in EME. Legal & General Group Plc lifted its position in Emcor Group by 12.9% during the second quarter. Legal & General Group Plc now owns 72,726 shares of the construction company’s stock valued at $4,756,000 after purchasing an additional 8,285 shares in the last quarter. State Board of Administration of Florida Retirement System lifted its position in Emcor Group by 0.7% during the second quarter. State Board of Administration of Florida Retirement System now owns 43,372 shares of the construction company’s stock valued at $2,836,000 after purchasing an additional 307 shares in the last quarter. American Century Companies Inc. purchased a new position in Emcor Group during the second quarter valued at $1,377,000. Pacer Advisors Inc. lifted its position in Emcor Group by 7.3% during the second quarter. Pacer Advisors Inc. now owns 7,374 shares of the construction company’s stock valued at $482,000 after purchasing an additional 501 shares in the last quarter. Finally, Zurcher Kantonalbank Zurich Cantonalbank lifted its position in Emcor Group by 8.9% during the second quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 2,376 shares of the construction company’s stock valued at $155,000 after purchasing an additional 194 shares in the last quarter. Institutional investors own 94.07% of the company’s stock.
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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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