Dycom Industries (NYSE:DY) Price Target Lowered to $525.00 at UBS Group

Key Points

• UBS lowered Dycom’s price target to $525 from $611 but maintained a “buy” rating, implying substantial upside from the stock’s prior close. Analysts overall hold a “Moderate Buy” consensus with an average target of $521.27.
• Dycom reported a strong quarter, with EPS of $5.29 beating estimates and revenue rising 45.6% year over year to $2.01 billion. However, fiscal Q3 EPS guidance of $4.33–$4.79 came in below consensus, while $150 million of wireless revenue was deferred to fiscal 2028.
• The company authorized a $150 million share-repurchase program, covering up to roughly 1.4% of shares outstanding. Strong fiber, data-center and infrastructure demand helped drive a record $12.24 billion backlog.

Dycom Industries (NYSE:DY - Get Free Report) had its price objective dropped by analysts at UBS Group from $611.00 to $525.00 in a research report issued to clients and investors on Thursday,Benzinga reports. The brokerage currently has a "buy" rating on the construction company's stock. UBS Group's price objective would indicate a potential upside of 70.94% from the company's previous close.

Several other research analysts also recently commented on the company. B. Riley Financial lifted their price objective on Dycom Industries from $485.00 to $625.00 and gave the stock a "buy" rating in a report on Thursday, May 28th. Cantor Fitzgerald reduced their price target on Dycom Industries from $654.00 to $476.00 and set an "overweight" rating on the stock in a research report on Thursday. KeyCorp lowered their price objective on Dycom Industries from $610.00 to $423.00 and set an "overweight" rating for the company in a research report on Thursday. Wedbush set a $654.00 price objective on Dycom Industries in a research note on Friday, May 29th. Finally, Weiss Ratings upgraded shares of Dycom Industries from a "buy (b-)" rating to a "buy (b)" rating in a report on Thursday, August 13th. Eleven investment analysts have rated the stock with a Buy rating and one has issued a Hold rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus price target of $521.27.

Dycom Industries Trading Down 1.2%

Shares of Dycom Industries stock traded down $3.79 during trading on Thursday, reaching $307.12. The company's stock had a trading volume of 230,550 shares, compared to its average volume of 487,023. The company has a quick ratio of 2.46, a current ratio of 2.58 and a debt-to-equity ratio of 1.48. Dycom Industries has a 52-week low of $242.55 and a 52-week high of $566.47. The firm's 50-day moving average is $424.20 and its two-hundred day moving average is $415.22. The company has a market cap of $9.22 billion, a price-to-earnings ratio of 29.33, a PEG ratio of 0.62 and a beta of 1.54.

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, topping analysts' consensus estimates of $4.72 by $0.57. The company had revenue of $2.01 billion for the quarter, compared to analysts' expectations of $1.98 billion. Dycom Industries had a net margin of 4.98% and a return on equity of 24.13%. The firm's revenue was up 45.6% compared to the same quarter last year. During the same quarter last year, the company earned $3.33 EPS. Dycom Industries has set its Q3 2027 guidance at 4.330-4.790 EPS. On average, sell-side analysts anticipate that Dycom Industries will post 15.45 earnings per share for the current year.

Dycom Industries declared that its board has approved a share repurchase plan on Wednesday, August 26th that allows the company to buyback $150.00 million in shares. This buyback authorization allows the construction company to reacquire up to 1.4% of its shares through open market purchases. Shares buyback plans are generally a sign that the company's board of directors believes its stock is undervalued.

Institutional Investors Weigh In On Dycom Industries

A number of large investors have recently made changes to their positions in the business. Northwestern Mutual Wealth Management Co. lifted its holdings in Dycom Industries by 265,593,055.6% in the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 23,903,384 shares of the construction company's stock worth $8,076,953,000 after buying an additional 23,903,375 shares during the period. California State Teachers Retirement System grew its holdings in shares of Dycom Industries by 51,902.4% during the 2nd quarter. California State Teachers Retirement System now owns 17,614,250 shares of the construction company's stock worth $8,905,589,000 after acquiring an additional 17,580,378 shares during the period. BlackRock Inc. bought a new position in shares of Dycom Industries in the 2nd quarter worth approximately $1,513,523,000. Hill City Capital LP purchased a new position in shares of Dycom Industries in the 2nd quarter valued at approximately $510,536,693,000. Finally, Bank of America Corp DE purchased a new position in shares of Dycom Industries in the 2nd quarter valued at approximately $270,174,000. 98.33% of the stock is currently owned by institutional investors.

Trending Headlines about Dycom Industries

Here are the key news stories impacting Dycom Industries this week:

• Positive Sentiment: Record Q2 results beat expectations. Adjusted EPS was $5.29 versus the $4.72 consensus, while revenue rose 45.6% year over year to $2.01 billion, exceeding estimates. Adjusted EBITDA reached $315.5 million, above Wall Street’s $297 million forecast. Dycom Industries Reports Record Fiscal 2027 Second Quarter Results
• Positive Sentiment: Strong infrastructure demand is supporting growth. Management highlighted continued fiber demand, data-center activity and Building Systems work, while the backlog reached a record $12.24 billion, up 53.2% year over year. The trends are viewed as potential beneficiaries of broader AI and digital-infrastructure investment. DY Q2 Earnings Call Focuses on Fiber Demand and Higher Outlook
• Positive Sentiment: Dycom raised its fiscal 2027 revenue outlook to approximately $7.48 billion-$7.66 billion, broadly in line with the $7.6 billion analyst consensus, and completed its acquisition of National Technology Integrators. Dycom Forecasts Fiscal 2027 Revenue Outlook
• Positive Sentiment: A new $150 million share-repurchase authorization could support per-share value and signals that the board considers the stock attractively valued. The program permits repurchases of up to roughly 1.4% of outstanding shares. Dycom Announces New Stock Repurchase Program
• Negative Sentiment: Fiscal Q3 EPS guidance disappointed. The company projected adjusted EPS of $4.33-$4.79, with the midpoint below the $4.68 consensus, causing investors to discount the otherwise strong earnings beat.
• Negative Sentiment: Approximately $150 million of wireless revenue was deferred into fiscal 2028. Although the work was postponed rather than canceled, the timing shift raised concerns about near-term growth and execution. Why Is Dycom Industries Stock Sinking
• Negative Sentiment: Analysts lowered price targets following the report: Wells Fargo cut its target to $550, KeyCorp to $423 and Cantor Fitzgerald to $476. All retained an “overweight” rating, but the reductions reflect more cautious near-term expectations.

Dycom Industries Company Profile

Dycom Industries, Inc NYSE: DY is a leading provider of specialty contracting services to the telecommunications industry in North America. The company delivers engineering, construction, installation and maintenance solutions for communications infrastructure, supporting a broad range of network technologies and system architectures. Dycom's services span outside plant construction, cable placement, fiber optic deployment, wireless and wireline network engineering, as well as testing and turn-up services for voice, data and video applications.

Dycom's customer base includes major telecommunications carriers, cable operators, utility companies and competitive local exchange carriers.

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