Dycom Industries (NYSE:DY) Raised to Buy at Wall Street Zen

Key Points

• Wall Street Zen upgraded Dycom Industries to “buy” from “hold.” The stock has a consensus “Moderate Buy” rating from analysts, with an average price target of $502.92.
• Dycom reported quarterly EPS of $5.29, exceeding estimates of $4.72, while revenue reached $2.01 billion and increased 45.6% year over year.
• The board authorized a $150 million share-repurchase program, and company directors recently purchased shares, signaling potential confidence in the stock’s valuation.

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

A number of other research analysts also recently issued reports on DY. KeyCorp upped their price objective on Dycom Industries from $423.00 to $429.00 and gave the company an "overweight" rating in a research note on Monday, September 21st. Weiss Ratings downgraded shares of Dycom Industries from a "buy (b-)" rating to a "hold (c+)" rating in a report on Friday, September 18th. Raymond James Financial set a $375.00 price target on shares of Dycom Industries in a research report on Thursday, September 3rd. UBS Group restated a "buy" rating on shares of Dycom Industries in a report on Thursday, September 17th. Finally, Cantor Fitzgerald reaffirmed an "overweight" rating and issued a $476.00 price objective on shares of Dycom Industries in a research report on Friday. Ten analysts have rated the stock with a Buy rating and two have given a Hold rating to the stock. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average target price of $502.92.

Dycom Industries Price Performance

Shares of NYSE DY opened at $270.19 on Friday. Dycom Industries has a twelve month low of $263.36 and a twelve month high of $566.47. The stock's 50 day moving average price is $326.60 and its 200-day moving average price is $390.79. The company has a market capitalization of $8.15 billion, a PE ratio of 24.58, a PEG ratio of 0.47 and a beta of 1.50. The company has a quick ratio of 2.24, a current ratio of 2.35 and a debt-to-equity ratio of 1.35.

Dycom Industries (NYSE:DY - Get Free Report) last released its earnings results on Wednesday, August 26th. The construction company reported $5.29 earnings per share (EPS) for the quarter, beating the consensus estimate of $4.72 by $0.57. The company had revenue of $2.01 billion during the quarter, compared to analyst estimates of $1.98 billion. Dycom Industries had a return on equity of 25.30% and a net margin of 4.79%. Dycom Industries's quarterly revenue was up 45.6% on a year-over-year basis. During the same period in the prior year, the company posted $3.33 earnings per share. Dycom Industries has set its Q3 2027 guidance at 4.330-4.790 EPS. On average, equities analysts anticipate that Dycom Industries will post 16.06 EPS for the current year.

Dycom Industries announced that its board has initiated a share 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 purchase up to 1.4% of its shares through open market purchases. Share repurchase programs are usually an indication that the company's board believes its shares are undervalued.

Insider Buying and Selling at Dycom Industries

In other news, Director David Fallon bought 700 shares of the stock in a transaction on Tuesday, September 1st. The shares were purchased at an average cost of $286.92 per share, for a total transaction of $200,844.00. Following the completion of the purchase, the director directly owned 1,043 shares in the company, valued at $299,257.56. This represents a 204.08% increase in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, Director Carmen Sabater purchased 350 shares of the company's 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 transaction, the director directly owned 7,154 shares in the company, valued at approximately $2,007,555.48. The trade was a 5.14% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Insiders own 1.22% of the company's stock.

Institutional Investors Weigh In On Dycom Industries

Several institutional investors have recently added to or reduced their stakes in the business. BlackRock Inc. bought a new stake in Dycom Industries during the 2nd quarter worth approximately $1,513,523,000. Hill City Capital LP purchased a new stake in Dycom Industries in the 2nd quarter worth approximately $510,536,693. First Trust Advisors LP boosted its holdings in Dycom Industries by 27.8% in the 1st quarter. First Trust Advisors LP now owns 798,699 shares of the construction company's stock valued at $270,615,000 after purchasing an additional 173,528 shares during the period. Bank of America Corp DE bought a new position in Dycom Industries in the 2nd quarter valued at $270,174,000. Finally, Arrowstreet Capital Limited Partnership grew its position in shares of Dycom Industries by 19.9% during the 1st quarter. Arrowstreet Capital Limited Partnership now owns 396,240 shares of the construction company's stock valued at $134,254,000 after purchasing an additional 65,724 shares in the last quarter. 98.33% of the stock is owned by hedge funds and other institutional investors.

Dycom Industries Company Profile

Dycom Industries, Inc is a provider of specialty contracting services for the telecommunications and utility industries. Through its operating subsidiaries, the company designs, builds, installs, maintains and repairs infrastructure used by telecommunications providers, utilities and government agencies.

Its services include engineering and project management, aerial and underground construction, fiber-optic and broadband network deployment, wireless infrastructure installation, network maintenance, fulfillment services and emergency restoration.

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