Dycom Industries (NYSE:DY) Lowered to Hold Rating by Wall Street Zen

Key Points

• Wall Street Zen downgraded Dycom Industries to “hold” from “buy,” although analysts overall maintain a “Moderate Buy” consensus with an average price target of $502.42.
• Dycom reported quarterly EPS of $5.29, beating estimates by $0.57, while revenue reached $2.01 billion and increased 45.6% year over year.
• The company authorized a $150 million stock buyback, and institutional investors own approximately 98.33% of its outstanding shares.

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

DY has been the topic of several other reports. B. Riley Financial upped their price target on Dycom Industries from $485.00 to $625.00 and gave the company a "buy" rating in a research report on Thursday, May 28th. Raymond James Financial set a $375.00 price target on Dycom Industries in a research report on Thursday, September 3rd. Zacks Research downgraded shares of Dycom Industries from a "strong-buy" rating to a "hold" rating in a research note on Monday, July 27th. Weiss Ratings lowered shares of Dycom Industries from a "buy (b)" rating to a "buy (b-)" rating in a research report on Monday, August 31st. Finally, UBS Group reissued a "buy" rating on shares of Dycom Industries in a research note on Thursday. Eleven equities research analysts have rated the stock with a Buy rating and one has given a Hold rating to the company's stock. Based on data from MarketBeat, the company has an average rating of "Moderate Buy" and an average target price of $502.42.

Dycom Industries Trading Up 2.0%

Shares of DY opened at $291.17 on Friday. Dycom Industries has a fifty-two week low of $266.09 and a fifty-two week high of $566.47. The business has a 50-day moving average of $368.31 and a 200 day moving average of $400.23. The firm has a market cap of $8.78 billion, a P/E ratio of 26.49, a price-to-earnings-growth ratio of 0.50 and a beta of 1.49. 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 released its quarterly earnings data on Wednesday, August 26th. The construction company reported $5.29 EPS for the quarter, beating the consensus estimate of $4.72 by $0.57. The business had revenue of $2.01 billion for the quarter, compared to the consensus estimate of $1.98 billion. Dycom Industries had a net margin of 4.79% and a return on equity of 25.30%. The company's revenue was up 45.6% compared to the same quarter last year. During the same period in the prior year, the firm earned $3.33 earnings per share. Dycom Industries has set its Q3 2027 guidance at 4.330-4.790 EPS. As a group, research analysts forecast that Dycom Industries will post 15.63 EPS for the current year.

Dycom Industries announced that its Board of Directors has initiated a stock buyback program on Wednesday, August 26th that permits the company to repurchase $150.00 million in shares. This repurchase authorization permits the construction company to buy up to 1.4% of its shares through open market purchases. Shares repurchase programs are usually an indication that the company's board of directors believes its shares are undervalued.

Insider Buying and Selling

In other Dycom Industries news, Director David Fallon purchased 700 shares of the firm's stock in a transaction on Tuesday, September 1st. The shares were purchased at an average cost of $286.92 per share, with a total value of $200,844.00. Following the completion of the purchase, the director owned 1,043 shares of the company's stock, valued at $299,257.56. The trade was a 204.08% increase in their position. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. 1.22% of the stock is owned by insiders.

Hedge Funds Weigh In On Dycom Industries

Large investors have recently added to or reduced their stakes in the business. BlackRock Inc. purchased a new position in shares of Dycom Industries in the second quarter worth about $1,513,523,000. Hill City Capital LP purchased a new stake in Dycom Industries during the 2nd quarter valued at about $510,536,693. First Trust Advisors LP grew its position 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 acquiring an additional 173,528 shares during the last quarter. Bank of America Corp DE purchased a new position in Dycom Industries in the 2nd quarter worth approximately $270,174,000. Finally, Geode Capital Management LLC lifted its position in Dycom Industries by 8.0% in the fourth quarter. Geode Capital Management LLC now owns 727,238 shares of the construction company's stock valued at $245,771,000 after purchasing an additional 53,993 shares during the last quarter. Hedge funds and other institutional investors own 98.33% of the company's stock.

About Dycom Industries

Dycom Industries, Inc is a specialty contractor that provides infrastructure construction and maintenance services for the telecommunications and utility industries. The company supports the expansion, upgrade and upkeep of communications networks, including fiber-optic, broadband, wireless and other voice and data systems.

Its services include engineering and design, aerial and underground construction, fiber and cable installation, wireless infrastructure deployment, network maintenance, utility locating, vegetation management and emergency restoration.

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