Zacks Investment Research upgraded shares of AECOM (NYSE:ACM) from a sell rating to a hold rating in a research note released on Wednesday morning.
According to Zacks, “AECOM’s fiscal fourth-quarter 2017 adjusted earnings beat the Zacks Consensus Estimate by 4.2% and were up 13.8% year over year. 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. Volatility in the oil and gas market, with declining prices and contracting spending levels, has been hurting the company’s projects and orders. Consequently, AECOM’s shares have underperformed the industry average on a year-to-date basis. Moreover, cyclical demand of the company’s services and currency fluctuations are likely to thwart growth, going forward.”
ACM has been the subject of several other research reports. UBS AG reissued a buy rating and issued a $4.00 price target (down previously from $40.00) on shares of AECOM in a research report on Tuesday, November 14th. KeyCorp reissued a buy rating on shares of AECOM in a research report on Friday, September 22nd. Canaccord Genuity reaffirmed a hold rating and set a $36.00 price objective on shares of AECOM in a report on Tuesday, November 14th. Robert W. Baird reaffirmed a neutral rating and set a $38.00 price objective (up previously from $36.00) on shares of AECOM in a report on Friday, September 22nd. Finally, DA Davidson reaffirmed a hold rating and set a $39.00 price objective on shares of AECOM in a report on Tuesday, November 14th. One research analyst has rated the stock with a sell rating, six have assigned a hold rating and five have given a buy rating to the company. The company currently has a consensus rating of Hold and a consensus price target of $31.70.
AECOM (NYSE:ACM) last posted its quarterly earnings results on Monday, November 13th. The construction company reported $0.74 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $0.71 by $0.03. AECOM had a net margin of 1.86% and a return on equity of 12.51%. The firm had revenue of $4.86 billion during the quarter, compared to analyst estimates of $4.63 billion. During the same quarter in the prior year, the business posted $0.65 earnings per share. The company’s quarterly revenue was up 12.3% compared to the same quarter last year. analysts expect that AECOM will post 2.68 EPS for the current fiscal year.
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AECOM announced that its Board of Directors has authorized a share repurchase plan on Thursday, September 21st that authorizes the company to repurchase $1.00 billion in shares. This repurchase authorization authorizes the construction company to buy up to 18.3% of its shares through open market purchases. Shares repurchase plans are typically an indication that the company’s board of directors believes its stock is undervalued.
In related news, CEO Michael S. Burke sold 30,000 shares of the firm’s stock in a transaction that occurred on Wednesday, September 27th. The shares were sold at an average price of $37.00, for a total value of $1,110,000.00. Following the completion of the sale, the chief executive officer now owns 154,362 shares of the company’s stock, valued at $5,711,394. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, CEO Michael S. Burke sold 56,800 shares of the firm’s stock in a transaction that occurred on Thursday, October 5th. The shares were sold at an average price of $36.86, for a total transaction of $2,093,648.00. The disclosure for this sale can be found here. Company insiders own 0.73% of the company’s stock.
Several institutional investors have recently modified their holdings of ACM. Crow Point Partners LLC acquired a new stake in shares of AECOM in the third quarter valued at approximately $102,000. Nomura Asset Management Co. Ltd. increased its holdings in shares of AECOM by 4.9% in the first quarter. Nomura Asset Management Co. Ltd. now owns 3,410 shares of the construction company’s stock valued at $122,000 after purchasing an additional 160 shares in the last quarter. Financial Architects Inc increased its holdings in shares of AECOM by 1.0% in the second quarter. Financial Architects Inc now owns 4,632 shares of the construction company’s stock valued at $150,000 after purchasing an additional 48 shares in the last quarter. Global X Management Co. LLC increased its holdings in shares of AECOM by 220.7% in the second quarter. Global X Management Co. LLC now owns 4,923 shares of the construction company’s stock valued at $159,000 after purchasing an additional 3,388 shares in the last quarter. Finally, Zurcher Kantonalbank Zurich Cantonalbank increased its holdings in shares of AECOM by 12.0% in the second quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 5,359 shares of the construction company’s stock valued at $173,000 after purchasing an additional 576 shares in the last quarter. 82.07% of the stock is owned by institutional investors and hedge funds.
AECOM Company Profile
AECOM is engaged in designing, building, financing and operating infrastructure assets for governments, businesses and organizations. The Company’s segments include design and consulting services (DCS), construction services (CS) and management services (MS). Its DCS segment is engaged in planning, consulting, architectural and engineering design services to commercial and government clients in major end markets, such as transportation, facilities, environmental, energy, water and government.
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