Everus Construction Group (NYSE:ECG) Cut to "Hold" at Zacks Research

Key Points

• Zacks Research downgraded Everus Construction Group to “hold” from “strong buy,” although the broader analyst consensus remains “Moderate Buy” with an average price target of $169.50.
• Everus reported a strong quarter, with EPS of $1.64 beating estimates by $0.50 and revenue of $1.23 billion rising 33.7% year over year.
• The stock opened at $125.38, below the consensus target, while institutional ownership expanded through major purchases by BlackRock, Wasatch Advisors and First Trust Advisors.

Everus Construction Group (NYSE:ECG - Get Free Report) was downgraded by research analysts at Zacks Research from a "strong-buy" rating to a "hold" rating in a research report issued to clients and investors on Tuesday, Zacks reports.

Other equities research analysts also recently issued research reports about the company. Guggenheim increased their price objective on Everus Construction Group from $160.00 to $184.00 and gave the stock a "buy" rating in a research report on Thursday, August 6th. Oppenheimer restated an "outperform" rating and set a $200.00 target price on shares of Everus Construction Group in a research report on Thursday, August 6th. Cantor Fitzgerald decreased their target price on Everus Construction Group from $174.00 to $152.00 and set a "neutral" rating on the stock in a research note on Thursday, August 13th. DA Davidson assumed coverage on Everus Construction Group in a report on Friday, August 21st. They issued a "buy" rating and a $168.00 price target on the stock. Finally, Freedom Capital upgraded shares of Everus Construction Group from a "hold" rating to a "strong-buy" rating in a research report on Thursday, August 6th. One analyst has rated the stock with a Strong Buy rating, four have given a Buy rating and four have issued a Hold rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $169.50.

Everus Construction Group Price Performance

Shares of NYSE:ECG opened at $125.38 on Tuesday. The company has a 50 day moving average of $123.08 and a 200 day moving average of $134.66. The company has a current ratio of 1.59, a quick ratio of 1.53 and a debt-to-equity ratio of 0.34. The stock has a market cap of $6.40 billion, a P/E ratio of 25.23 and a beta of 2.27. Everus Construction Group has a 12 month low of $78.14 and a 12 month high of $171.58.

Everus Construction Group (NYSE:ECG - Get Free Report) last posted its earnings results on Tuesday, August 4th. The company reported $1.64 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.14 by $0.50. Everus Construction Group had a net margin of 5.96% and a return on equity of 38.22%. The business had revenue of $1.23 billion for the quarter, compared to analysts' expectations of $1.08 billion. During the same period in the prior year, the company posted $1.03 EPS. The business's revenue for the quarter was up 33.7% compared to the same quarter last year. As a group, sell-side analysts forecast that Everus Construction Group will post 5.25 EPS for the current fiscal year.

Insider Activity

In other news, VP Paul Sanderson sold 3,300 shares of the company's stock in a transaction dated Friday, August 7th. The stock was sold at an average price of $136.69, for a total value of $451,077.00. Following the completion of the transaction, the vice president directly owned 18,950 shares in the company, valued at approximately $2,590,275.50. This represents a 14.83% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, Director David Sparby acquired 1,000 shares of Everus Construction Group stock in a transaction dated Monday, August 17th. The shares were purchased at an average price of $144.95 per share, for a total transaction of $144,950.00. Following the completion of the transaction, the director directly owned 19,658 shares in the company, valued at approximately $2,849,427.10. The trade was a 5.36% increase in their position. The SEC filing for this purchase provides additional information. Insiders own 0.33% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of ECG. BlackRock Inc. bought a new stake in shares of Everus Construction Group in the 2nd quarter worth approximately $1,094,243,000. Wasatch Advisors LP raised its position in Everus Construction Group by 39.7% in the 1st quarter. Wasatch Advisors LP now owns 3,017,249 shares of the company's stock worth $356,216,000 after purchasing an additional 856,912 shares during the period. First Trust Advisors LP lifted its stake in Everus Construction Group by 109.9% in the first quarter. First Trust Advisors LP now owns 1,280,916 shares of the company's stock worth $151,225,000 after purchasing an additional 670,646 shares during the last quarter. Dimensional Fund Advisors LP lifted its stake in Everus Construction Group by 1.0% in the first quarter. Dimensional Fund Advisors LP now owns 1,105,056 shares of the company's stock worth $130,431,000 after purchasing an additional 10,760 shares during the last quarter. Finally, De Lisle Partners LLP purchased a new stake in Everus Construction Group during the second quarter valued at about $59,936,000.

Everus Construction Group Company Profile

Everus Construction Group, Inc is a U.S.-based infrastructure construction company that provides services for electric, natural gas, communications and other utility networks. Its work includes the construction, maintenance and repair of power transmission and distribution systems, underground and overhead utility infrastructure, natural gas pipelines and related facilities.

The company also serves telecommunications, renewable energy, industrial and commercial customers. Its capabilities include engineering and construction, storm restoration, distribution system work, substation and transmission construction, fiber and communications infrastructure, and other specialized projects that support energy and utility networks.

Everus Construction Group was formerly known as MDU Construction Services Group and became an independent publicly traded company following its separation from MDU Resources Group in 2024.

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