EMCOR Group (NYSE:EME) Reaches New 1-Year High - Here's Why

Key Points

• EMCOR Group's share price surged to a new 52-week high of $642.56, reflecting strong trading volume of 323,004 shares.
• Several analysts have given mixed ratings on EMCOR Group, with eight issuing a "buy" recommendation and a consensus target price of $581.40, despite Goldman Sachs assigning a "sell" rating.
• The company announced a quarterly dividend of $0.25 per share, with the ex-dividend date set for July 15th, which indicates a low annualized yield of 0.16% relative to its earnings performance.

EMCOR Group, Inc. (NYSE:EME - Get Free Report)'s share price hit a new 52-week high on Wednesday . The company traded as high as $642.56 and last traded at $636.74, with a volume of 323004 shares trading hands. The stock had previously closed at $636.23.

Wall Street Analyst Weigh In

A number of brokerages recently weighed in on EME. The Goldman Sachs Group raised their price target on shares of EMCOR Group from $384.00 to $435.00 and gave the company a "sell" rating in a research note on Tuesday, July 8th. Robert W. Baird began coverage on shares of EMCOR Group in a research note on Friday, June 27th. They issued an "outperform" rating and a $560.00 price target on the stock. William Blair assumed coverage on shares of EMCOR Group in a research note on Friday, June 27th. They issued an "outperform" rating on the stock. Jefferies Financial Group assumed coverage on shares of EMCOR Group in a research note on Friday, June 27th. They issued a "buy" rating on the stock. Finally, Hovde Group raised shares of EMCOR Group to a "hold" rating in a research note on Friday, June 27th. One equities research analyst has rated the stock with a sell rating, one has given a hold rating, eight have assigned a buy rating and one has issued a strong buy rating to the company. Based on data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus price target of $581.40.

EMCOR Group Price Performance

The firm has a market capitalization of $28.25 billion, a PE ratio of 27.83 and a beta of 1.24. The company has a debt-to-equity ratio of 0.08, a quick ratio of 1.14 and a current ratio of 1.16. The stock's 50 day simple moving average is $524.51 and its two-hundred day simple moving average is $456.34.

EMCOR Group (NYSE:EME - Get Free Report) last released its quarterly earnings results on Thursday, July 31st. The construction company reported $6.72 EPS for the quarter, beating the consensus estimate of $5.68 by $1.04. EMCOR Group had a net margin of 7.00% and a return on equity of 37.12%. The firm had revenue of $4.30 billion for the quarter, compared to analyst estimates of $4.10 billion. During the same quarter in the previous year, the company earned $5.25 EPS. The business's revenue for the quarter was up 17.4% compared to the same quarter last year. On average, sell-side analysts forecast that EMCOR Group, Inc. will post 20.74 EPS for the current year.

EMCOR Group Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Thursday, July 31st. Investors of record on Tuesday, July 15th were issued a $0.25 dividend. This represents a $1.00 annualized dividend and a yield of 0.2%. The ex-dividend date was Tuesday, July 15th. EMCOR Group's dividend payout ratio (DPR) is 4.42%.

Insiders Place Their Bets

In other EMCOR Group news, CEO Anthony Guzzi sold 7,000 shares of the business's stock in a transaction on Monday, May 5th. The shares were sold at an average price of $436.03, for a total value of $3,052,210.00. Following the completion of the transaction, the chief executive officer owned 208,989 shares in the company, valued at $91,125,473.67. The trade was a 3.24% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at the SEC website. Company insiders own 0.83% of the company's stock.

Hedge Funds Weigh In On EMCOR Group

Several institutional investors have recently modified their holdings of the business. McLean Asset Management Corp grew its stake in shares of EMCOR Group by 2.8% in the second quarter. McLean Asset Management Corp now owns 700 shares of the construction company's stock worth $379,000 after acquiring an additional 19 shares in the last quarter. Park Place Capital Corp raised its holdings in shares of EMCOR Group by 6.9% in the second quarter. Park Place Capital Corp now owns 308 shares of the construction company's stock valued at $164,000 after buying an additional 20 shares during the last quarter. NBC Securities Inc. raised its holdings in shares of EMCOR Group by 0.7% in the second quarter. NBC Securities Inc. now owns 3,170 shares of the construction company's stock valued at $1,695,000 after buying an additional 23 shares during the last quarter. Institute for Wealth Management LLC. raised its holdings in shares of EMCOR Group by 2.2% in the second quarter. Institute for Wealth Management LLC. now owns 1,051 shares of the construction company's stock valued at $562,000 after buying an additional 23 shares during the last quarter. Finally, Wealthstream Advisors Inc. raised its holdings in shares of EMCOR Group by 3.4% in the second quarter. Wealthstream Advisors Inc. now owns 721 shares of the construction company's stock valued at $386,000 after buying an additional 24 shares during the last quarter. Institutional investors and hedge funds own 92.59% of the company's stock.

EMCOR Group Company Profile

EMCOR Group, Inc provides construction and facilities, building, and industrial services in the United States and the United Kingdom. It offers design, integration, installation, start-up, operation, and maintenance services related to power transmission, distribution, and generation systems; energy solutions; premises electrical and lighting systems; process instrumentation; low-voltage systems; voice and data communications systems; roadway and transit lighting, signaling, and fiber optic lines; computerized traffic control systems, and signal and communication equipment; heating, ventilation, air conditioning, refrigeration, and geothermal solutions; clean-room process ventilation systems; fire protection and suppression systems; plumbing, process, and high-purity piping systems; controls and filtration systems; water and wastewater treatment systems; central plant heating and cooling systems; crane and rigging services; millwright services; and steel fabrication, erection, and welding services.