Dycom Industries (DY) Lifted to Hold at Zacks Investment Research

Zacks Investment Research upgraded shares of Dycom Industries (NYSE:DY) from a strong sell rating to a hold rating in a research note published on Tuesday.

According to Zacks, “Dycom is likely to gain from surging demand for 1-gigabit deployment and wireline networks, strong backlog and continuous contract flows in the long run. Moreover, with the commencement of new contracts, the company expects engineering and construction work to gain strong momentum in the coming quarters. In order to expand its market share, the company seeks to grab opportunities by undertaking acquisitions. Its strong financial position, coupled with diligent operational execution, allows it to undertake strategic initiatives. However, shares of Dycom have significantly underperformed the industry in the past six months. Also, massive promotional expenditure and intense competition in U.S. telecommunications industry remain threat. Seasonal fluctuations and cyclicality of business further add to the woes.”

Several other equities analysts have also issued reports on DY. B. Riley lowered Dycom Industries from a buy rating to a neutral rating and dropped their price target for the company from $120.00 to $75.00 in a research note on Monday, August 13th. ValuEngine lowered Dycom Industries from a sell rating to a strong sell rating in a research note on Monday, August 13th. Craig Hallum lowered Dycom Industries from a buy rating to a hold rating in a research note on Tuesday, August 14th. Canaccord Genuity restated a buy rating and set a $90.00 price objective (down previously from $120.00) on shares of Dycom Industries in a report on Tuesday, August 14th. Finally, Deutsche Bank set a $85.00 price objective on Dycom Industries and gave the company a buy rating in a report on Tuesday, August 14th. One analyst has rated the stock with a sell rating, four have assigned a hold rating and six have given a buy rating to the company’s stock. The stock currently has a consensus rating of Hold and an average price target of $101.40.

Dycom Industries stock opened at $75.26 on Tuesday. The company has a current ratio of 3.24, a quick ratio of 2.96 and a debt-to-equity ratio of 0.93. The company has a market capitalization of $2.45 billion, a P/E ratio of 27.94, a P/E/G ratio of 3.27 and a beta of 1.21. Dycom Industries has a one year low of $67.15 and a one year high of $123.99.

Dycom Industries (NYSE:DY) last posted its quarterly earnings data on Wednesday, August 29th. The construction company reported $1.05 EPS for the quarter, hitting the Zacks’ consensus estimate of $1.05. The company had revenue of $799.50 million for the quarter, compared to analyst estimates of $799.51 million. Dycom Industries had a return on equity of 12.07% and a net margin of 3.94%. The firm’s quarterly revenue was up 2.5% on a year-over-year basis. During the same period in the previous year, the firm earned $1.47 earnings per share. Equities analysts predict that Dycom Industries will post 2.82 earnings per share for the current fiscal year.

Dycom Industries declared that its board has authorized a stock buyback program on Wednesday, August 29th that allows the company to repurchase $150.00 million in outstanding shares. This repurchase authorization allows the construction company to buy up to 6.3% of its shares through open market purchases. Shares repurchase programs are typically an indication that the company’s management believes its shares are undervalued.

A number of hedge funds have recently bought and sold shares of DY. New York State Common Retirement Fund boosted its position in Dycom Industries by 9.3% in the first quarter. New York State Common Retirement Fund now owns 38,835 shares of the construction company’s stock worth $4,180,000 after purchasing an additional 3,305 shares during the last quarter. California Public Employees Retirement System boosted its position in Dycom Industries by 1.6% in the first quarter. California Public Employees Retirement System now owns 65,578 shares of the construction company’s stock worth $7,058,000 after purchasing an additional 1,032 shares during the last quarter. Stifel Financial Corp boosted its position in Dycom Industries by 13.0% in the first quarter. Stifel Financial Corp now owns 31,820 shares of the construction company’s stock worth $3,423,000 after purchasing an additional 3,669 shares during the last quarter. Principal Financial Group Inc. lifted its position in shares of Dycom Industries by 3.2% during the 1st quarter. Principal Financial Group Inc. now owns 135,182 shares of the construction company’s stock valued at $14,550,000 after buying an additional 4,205 shares during the last quarter. Finally, Northwestern Mutual Investment Management Company LLC lifted its position in shares of Dycom Industries by 57.5% during the 1st quarter. Northwestern Mutual Investment Management Company LLC now owns 6,382 shares of the construction company’s stock valued at $687,000 after buying an additional 2,330 shares during the last quarter.

Dycom Industries Company Profile

Dycom Industries, Inc provides specialty contracting services in the United States and Canada. The company offers various specialty contracting services, including program management, engineering, construction, maintenance, and installation services, such as placement and splicing of fiber, copper, and coaxial cables to telecommunications providers.

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