Emcor Group (NYSE:EME) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research report issued 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.”
Several other analysts also recently weighed in on EME. Stifel Nicolaus restated a “buy” rating and set a $88.00 price objective (up from $75.00) on shares of Emcor Group in a research report on Wednesday, November 1st. KeyCorp restated a “hold” rating on shares of Emcor Group in a research report on Friday, November 17th. Finally, ValuEngine downgraded Emcor Group from a “buy” rating to a “hold” rating in a research report on Tuesday, November 14th. One equities research analyst has rated the stock with a sell rating, five have issued a hold rating and one has assigned a buy rating to the stock. The stock has an average rating of “Hold” and a consensus price target of $83.33.
Shares of Emcor Group (NYSE EME) traded up $1.48 during mid-day trading on Tuesday, hitting $83.31. The company had a trading volume of 654,100 shares, compared to its average volume of 381,288. The company has a current ratio of 1.44, a quick ratio of 1.41 and a debt-to-equity ratio of 0.25. Emcor Group has a twelve month low of $59.76 and a twelve month high of $84.73. The company has a market cap of $4,900.00, a P/E ratio of 23.01, a P/E/G ratio of 1.37 and a beta of 1.02.
Emcor Group (NYSE:EME) last announced its quarterly earnings data on Thursday, October 26th. The construction company reported $1.09 earnings per share for the quarter, topping the consensus estimate of $0.82 by $0.27. Emcor Group had a return on equity of 13.94% and a net margin of 2.82%. The business had revenue of $1.87 billion during the quarter, compared to the consensus estimate of $1.93 billion. During the same period in the prior year, the company earned $0.85 EPS. Emcor Group’s revenue for the quarter was down 2.9% on a year-over-year basis. analysts anticipate that Emcor Group will post 3.79 EPS for the current year.
Emcor Group declared that its board has approved a stock repurchase plan on Thursday, October 26th that permits the company to repurchase $100.00 million in shares. This repurchase authorization permits the construction company to repurchase up to 2.4% of its stock through open market purchases. Stock repurchase plans are usually a sign that the company’s management believes its shares are undervalued.
In other Emcor Group news, Director William P. Reid sold 4,647 shares of the stock in a transaction dated Wednesday, December 20th. The stock was sold at an average price of $82.90, for a total value of $385,236.30. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, Director Jerry E. Ryan sold 13,000 shares of the stock in a transaction dated Friday, October 27th. The shares were 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. 2.00% of the stock is currently owned by company insiders.
Several institutional investors and hedge funds have recently modified their holdings of the company. Prudential Financial Inc. raised its position in shares of Emcor Group by 19.8% during the third quarter. Prudential Financial Inc. now owns 1,102,699 shares of the construction company’s stock worth $76,506,000 after acquiring an additional 182,340 shares during the last quarter. Parametric Portfolio Associates LLC raised its position in shares of Emcor Group by 6.5% during the third quarter. Parametric Portfolio Associates LLC now owns 217,580 shares of the construction company’s stock worth $15,096,000 after acquiring an additional 13,353 shares during the last quarter. Public Employees Retirement System of Ohio raised its position in shares of Emcor Group by 53.1% during the third quarter. Public Employees Retirement System of Ohio now owns 170,281 shares of the construction company’s stock worth $11,814,000 after acquiring an additional 59,092 shares during the last quarter. Hahn Capital Management LLC raised its position in shares of Emcor Group by 28.3% during the third quarter. Hahn Capital Management LLC now owns 418,659 shares of the construction company’s stock worth $29,047,000 after acquiring an additional 92,305 shares during the last quarter. Finally, California Public Employees Retirement System raised its position in shares of Emcor Group by 1.6% during the third quarter. California Public Employees Retirement System now owns 126,868 shares of the construction company’s stock worth $8,802,000 after acquiring an additional 1,968 shares during the last quarter. Institutional investors own 94.07% of the company’s stock.
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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