AECOM (NYSE:ACM) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report issued on Friday.
According to Zacks, “AECOM has been witnessing robust prospects across most of its business segments that adds to its growth momentum. Increase in the proportion of higher margin work is benefiting AECOM’s Construction Services segment and Management Services segments. Also, the Shimmick buyout is supplementing core revenue growth. Going forward, the company remains optimistic that favorable political climate both in the United States and abroad will continue to create growth opportunities of the infrastructure and defense markets. However, on the negative side, volatility in the oil and gas market with declining prices and contracting spending levels has been hurting the company’s projects and orders. Moreover, cyclical demand of the company’s services and currency fluctuations are likely to thwart growth, going forward.”
Other equities research analysts have also issued research reports about the company. Barclays assumed coverage on AECOM in a research note on Tuesday, December 12th. They issued an “underweight” rating and a $34.00 price target for the company. Citigroup increased their price target on AECOM from $44.00 to $47.00 and gave the stock a “buy” rating in a research note on Tuesday, February 6th. Robert W. Baird upgraded AECOM from a “neutral” rating to an “outperform” rating and increased their price target for the stock from $40.00 to $45.00 in a research note on Wednesday, January 3rd. Finally, DA Davidson raised their price objective on AECOM to $40.00 and gave the company a “neutral” rating in a research report on Wednesday, February 7th. Two analysts have rated the stock with a sell rating, five have assigned a hold rating and five have given a buy rating to the stock. AECOM presently has an average rating of “Hold” and an average target price of $36.73.
Shares of ACM stock opened at $34.97 on Friday. AECOM has a 52-week low of $30.15 and a 52-week high of $39.90. The company has a quick ratio of 1.21, a current ratio of 1.21 and a debt-to-equity ratio of 0.86. The firm has a market capitalization of $5,733.27, a price-to-earnings ratio of 11.89, a price-to-earnings-growth ratio of 2.41 and a beta of 1.65.
AECOM (NYSE:ACM) last issued its quarterly earnings results on Tuesday, February 6th. The construction company reported $0.57 earnings per share (EPS) for the quarter, topping the Zacks’ consensus estimate of $0.55 by $0.02. AECOM had a return on equity of 11.74% and a net margin of 2.15%. The business had revenue of $4.91 billion during the quarter, compared to analyst estimates of $4.71 billion. During the same quarter in the prior year, the business posted $0.53 EPS. AECOM’s revenue for the quarter was up 12.7% compared to the same quarter last year. analysts expect that AECOM will post 2.69 EPS for the current year.
In other news, Vice Chairman Daniel R. Tishman sold 15,000 shares of the firm’s stock in a transaction dated Tuesday, February 27th. The stock was sold at an average price of $37.00, for a total transaction of $555,000.00. Following the completion of the transaction, the insider now owns 114,095 shares in the company, valued at $4,221,515. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, Director Linda M. Griego sold 5,160 shares of the firm’s stock in a transaction dated Friday, January 12th. The shares were sold at an average price of $38.11, for a total value of $196,647.60. Following the transaction, the director now owns 33,335 shares of the company’s stock, valued at approximately $1,270,396.85. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 40,136 shares of company stock valued at $1,517,467. Company insiders own 0.74% of the company’s stock.
A number of institutional investors and hedge funds have recently added to or reduced their stakes in ACM. Ladenburg Thalmann Financial Services Inc. grew its position in AECOM by 170.5% in the fourth quarter. Ladenburg Thalmann Financial Services Inc. now owns 5,391 shares of the construction company’s stock worth $201,000 after acquiring an additional 3,398 shares in the last quarter. Raymond James Financial Services Advisors Inc. purchased a new position in AECOM in the fourth quarter worth about $205,000. Boston Advisors LLC purchased a new position in AECOM in the fourth quarter worth about $206,000. Virtu Financial LLC purchased a new position in AECOM in the fourth quarter worth about $213,000. Finally, Princeton Capital Management LLC purchased a new position in AECOM in the fourth quarter worth about $220,000. Institutional investors own 84.01% of the company’s stock.
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AECOM, together with its subsidiaries, engages in designing, building, financing, and operating infrastructure assets worldwide. The company operates through four segments: Design and Consulting Services (DCS), Construction Services (CS), Management Services (MS), and AECOM Capital (ACAP). The DCS segment provides planning, consulting, architectural and engineering design, program management, and construction management services for industrial, commercial, institutional, and government clients, such as transportation, facilities, environmental, and energy/power markets.
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