Guggenheim Reiterates Buy Rating for Dycom Industries (NYSE:DY)

Key Points

• Guggenheim reaffirmed its Buy rating on Dycom Industries and maintained a $620 price target, implying 115.72% upside from the prior close. Analysts overall rate the stock “Moderate Buy,” with a consensus target of $502.42.
• Dycom reported quarterly results above expectations, with EPS of $5.29 versus a $4.72 consensus and revenue of $2.01 billion, up 45.6% year over year.
• The company authorized a $150 million share buyback, while director David Fallon purchased approximately $200,844 of stock. Institutional investors own 98.33% of Dycom’s shares.

Dycom Industries (NYSE:DY - Get Free Report)'s stock had its "buy" rating reaffirmed by equities researchers at Guggenheim in a note issued to investors on Thursday, Benzinga reports. They currently have a $620.00 price objective on the construction company's stock. Guggenheim's target price points to a potential upside of 115.72% from the stock's previous close.

A number of other equities research analysts have also issued reports on the stock. Wells Fargo & Company set a $476.00 price target on shares of Dycom Industries in a report on Thursday, August 27th. Zacks Research downgraded Dycom Industries from a "strong-buy" rating to a "hold" rating in a report on Monday, July 27th. KeyCorp reduced their price objective on shares of Dycom Industries from $610.00 to $423.00 and set an "overweight" rating for the company in a research note on Thursday, August 27th. UBS Group lowered their price objective on shares of Dycom Industries from $611.00 to $525.00 and set a "buy" rating on the stock in a research report on Thursday, August 27th. Finally, Raymond James Financial set a $375.00 price objective on shares of Dycom Industries in a research note on Thursday, September 3rd. Eleven investment analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company's stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $502.42.

Dycom Industries Trading Up 1.8%

DY stock opened at $287.41 on Thursday. 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 has a one year low of $254.90 and a one year high of $566.47. The company's 50 day moving average price is $373.82 and its two-hundred day moving average price is $401.95. The company has a market capitalization of $8.67 billion, a PE ratio of 26.15, a price-to-earnings-growth ratio of 0.49 and a beta of 1.49.

Dycom Industries (NYSE:DY - Get Free Report) last posted its quarterly earnings results on Wednesday, August 26th. The construction company reported $5.29 earnings per share for the quarter, topping 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 business had revenue of $2.01 billion during the quarter, compared to the consensus estimate of $1.98 billion. During the same period in the previous year, the firm posted $3.33 earnings per share. The firm's revenue for the quarter was up 45.6% on a year-over-year basis. Dycom Industries has set its Q3 2027 guidance at 4.330-4.790 EPS. As a group, analysts predict that Dycom Industries will post 15.63 earnings per share for the current fiscal year.

Dycom Industries declared that its board has approved a stock buyback 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 stock through open market purchases. Stock buyback plans are usually a sign that the company's leadership believes its shares are undervalued.

Insiders Place Their Bets

In related news, Director David Fallon acquired 700 shares of the firm's stock in a transaction on Tuesday, September 1st. The shares were acquired at an average cost of $286.92 per share, for a total transaction of $200,844.00. Following the completion of the transaction, the director directly owned 1,043 shares in the company, valued at approximately $299,257.56. This trade represents a 204.08% increase in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. 1.22% of the stock is owned by insiders.

Institutional Investors Weigh In On Dycom Industries

Several institutional investors have recently made changes to their positions in DY. BlackRock Inc. purchased a new stake in Dycom Industries in the second quarter worth $1,513,523,000. Hill City Capital LP purchased a new position in shares of Dycom Industries in the 2nd quarter valued at $510,536,693. First Trust Advisors LP boosted its position in Dycom Industries by 27.8% during the first 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 in the last quarter. Bank of America Corp DE bought a new stake in shares of Dycom Industries in the 2nd quarter valued at about $270,174,000. Finally, Geode Capital Management LLC lifted its position in Dycom Industries by 8.0% during the fourth quarter. Geode Capital Management LLC now owns 727,238 shares of the construction company's stock valued at $245,771,000 after acquiring an additional 53,993 shares during the last quarter. Institutional investors own 98.33% of the company's stock.

Dycom Industries Company Profile

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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