Dycom Industries (NYSE:DY) Cut to "Hold" at Wall Street Zen

Key Points

• Wall Street Zen downgraded Dycom Industries to “Hold” from “Buy,” although the broader analyst consensus remains “Moderate Buy,” with 10 Buy ratings and three Holds and an average price target of $502.92.
• Dycom shares opened at $227.42, down 5.1%, and remain well below their 52-week high of $566.47. The company recently beat quarterly expectations, reporting $5.29 in EPS and $2.01 billion in revenue, up 45.6% year over year.
• The board authorized a $150 million share-repurchase program, while directors also bought shares; institutional investors own 98.33% of the company.

Dycom Industries (NYSE:DY - Get Free Report) was downgraded by research analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a research note issued on Saturday, Wall Street Zen reports.

Several other analysts have also recently weighed in on DY. Zacks Research cut shares of Dycom Industries from a "strong-buy" rating to a "hold" rating in a research note on Monday, July 27th. Guggenheim reaffirmed a "buy" rating and set a $620.00 price objective on shares of Dycom Industries in a report on Thursday, September 17th. Oppenheimer began coverage on shares of Dycom Industries in a research note on Tuesday. They issued a "market perform" rating for the company. Cantor Fitzgerald reissued an "overweight" rating and issued a $476.00 target price on shares of Dycom Industries in a report on Friday, October 9th. Finally, UBS Group reissued a "buy" rating on shares of Dycom Industries in a report on Thursday, September 17th. Ten research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. According to data from MarketBeat.com, Dycom Industries currently has an average rating of "Moderate Buy" and an average target price of $502.92.

Dycom Industries Stock Down 5.1%

Shares of NYSE DY opened at $227.42 on Friday. The stock has a market cap of $6.86 billion, a PE ratio of 15.59, a PEG ratio of 0.41 and a beta of 1.50. The business has a fifty day moving average of $278.94 and a two-hundred day moving average of $378.40. Dycom Industries has a 52-week low of $215.28 and a 52-week high of $566.47. The company has a debt-to-equity ratio of 1.35, a quick ratio of 2.24 and a current ratio of 2.35.

Dycom Industries (NYSE:DY - Get Free Report) last issued its earnings results on Wednesday, August 26th. The construction company reported $5.29 EPS for the quarter, beating the consensus estimate of $4.72 by $0.57. Dycom Industries had a net margin of 4.79% and a return on equity of 25.30%. The company had revenue of $2.01 billion for the quarter, compared to the consensus estimate of $1.98 billion. During the same quarter in the previous year, the company earned $3.33 EPS. The firm's revenue for the quarter was up 45.6% compared to the same quarter last year. Dycom Industries has set its Q3 2027 guidance at 4.330-4.790 EPS. As a group, equities research analysts expect that Dycom Industries will post 15.98 earnings per share for the current fiscal year.

Dycom Industries announced that its Board of Directors has approved a share repurchase plan on Wednesday, August 26th that authorizes the company to repurchase $150 million in shares. This repurchase authorization authorizes the construction company to buy up to 1.4% of its stock through open market purchases. Share repurchase plans are usually an indication that the company's board of directors believes its shares are undervalued.

Insider Buying and Selling

In other news, Director David Fallon bought 700 shares of the business's stock in a transaction on Tuesday, September 1st. The shares were bought at an average cost of $286.92 per share, for a total transaction of $200,844.00. Following the completion of the acquisition, the director owned 1,043 shares in the company, valued at approximately $299,257.56. This trade represents a 204.08% increase in their position. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Carmen M. Sabater purchased 350 shares of Dycom Industries stock in a transaction dated Wednesday, September 23rd. The shares were purchased at an average cost of $280.62 per share, for a total transaction of $98,217.00. Following the completion of the transaction, the director owned 7,154 shares of the company's stock, valued at approximately $2,007,555.48. This represents a 5.14% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. 1.22% of the stock is currently owned by insiders.

Institutional Trading of Dycom Industries

A number of large investors have recently made changes to their positions in the company. BlackRock Inc. bought a new stake in shares of Dycom Industries during the second quarter worth approximately $1,513,523,000. Hill City Capital LP acquired a new stake in Dycom Industries during the 2nd quarter worth approximately $510,536,693. First Trust Advisors LP lifted its holdings in Dycom Industries by 27.8% during the 1st quarter. First Trust Advisors LP now owns 798,699 shares of the construction company's stock worth $270,615,000 after purchasing an additional 173,528 shares during the last quarter. Bank of America Corp DE acquired a new stake in Dycom Industries during the 2nd quarter worth approximately $270,174,000. Finally, Arrowstreet Capital Limited Partnership lifted its holdings in Dycom Industries by 19.9% during the 1st quarter. Arrowstreet Capital Limited Partnership now owns 396,240 shares of the construction company's stock worth $134,254,000 after purchasing an additional 65,724 shares during the last quarter. Institutional investors own 98.33% of the company's stock.

About Dycom Industries

Dycom Industries, Inc is a specialty contracting company that provides infrastructure services to telecommunications providers, utilities, cable and broadband companies, and government agencies. Headquartered in Palm Beach Gardens, Florida, the company operates primarily across the United States.

Its services include engineering, construction, installation, maintenance, and repair of telecommunications infrastructure. Dycom supports the deployment of fiber-optic networks, broadband systems, wireless networks, underground and aerial lines, and other communications facilities.

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