EMCOR Group (NYSE:EME) Shares Gap Up - What's Next?

Key Points

• EMCOR Group shares opened at $607.01 after gapping up from a previous close of $578.80, with the last traded price at $619.75.
• Several analysts have upgraded EMCOR Group's stock ratings, with a mix of "buy," "hold," and "sell" ratings, leading to an average rating of "Moderate Buy."
• The company reported a quarterly EPS of $5.41, exceeding estimates by $0.84, and showed a 12.7% year-over-year revenue growth.
• EMCOR declared a quarterly dividend of $0.25, signaling a 0.16% yield for investors, with a low dividend payout ratio of 4.42%.

EMCOR Group, Inc. (NYSE:EME - Get Free Report) shares gapped up prior to trading on Friday . The stock had previously closed at $578.80, but opened at $607.01. EMCOR Group shares last traded at $619.75, with a volume of 95,430 shares changing hands.

Wall Street Analyst Weigh In

A number of equities analysts have issued reports on the company. Hovde Group raised EMCOR Group to a "hold" rating in a research report on Friday, June 27th. Baird R W raised EMCOR Group to a "strong-buy" rating in a research report on Friday, June 27th. TD Securities assumed coverage on EMCOR Group in a research report on Friday, June 27th. They issued a "buy" rating on the stock. Robert W. Baird assumed coverage on EMCOR Group in a research note on Friday, June 27th. They issued an "outperform" rating and a $560.00 price target for the company. Finally, The Goldman Sachs Group increased their price target on EMCOR Group from $384.00 to $435.00 and gave the stock a "sell" rating in a research note on Tuesday, July 8th. One investment analyst has rated the stock with a sell rating, one has given a hold rating, nine have given a buy rating and one has assigned a strong buy rating to the stock. Based on data from MarketBeat.com, EMCOR Group currently has an average rating of "Moderate Buy" and an average target price of $532.00.

EMCOR Group Stock Performance

The firm has a market capitalization of $27.64 billion, a PE ratio of 27.29 and a beta of 1.24. The company has a debt-to-equity ratio of 0.08, a current ratio of 1.16 and a quick ratio of 1.14. The firm has a fifty day moving average price of $507.85 and a 200 day moving average price of $450.72.

EMCOR Group (NYSE:EME - Get Free Report) last announced its earnings results on Wednesday, April 30th. The construction company reported $5.41 EPS for the quarter, beating the consensus estimate of $4.57 by $0.84. The business had revenue of $3.87 billion during the quarter, compared to the consensus estimate of $3.78 billion. EMCOR Group had a return on equity of 37.12% and a net margin of 7.00%. EMCOR Group's revenue was up 12.7% compared to the same quarter last year. During the same period in the prior year, the business posted $4.17 earnings per share. Research analysts anticipate that EMCOR Group, Inc. will post 20.74 earnings per share for the current fiscal year.

EMCOR Group Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, July 31st. Investors of record on Tuesday, July 15th will be paid a $0.25 dividend. This represents a $1.00 annualized dividend and a yield of 0.16%. The ex-dividend date of this dividend is Tuesday, July 15th. EMCOR Group's dividend payout ratio is currently 4.42%.

Insider Transactions at EMCOR Group

In other news, CEO Anthony Guzzi sold 7,000 shares of the firm's stock in a transaction dated Monday, May 5th. The stock was sold at an average price of $436.03, for a total transaction of $3,052,210.00. Following the completion of the sale, the chief executive officer directly owned 208,989 shares of the company's stock, valued at $91,125,473.67. This trade represents a 3.24% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Robin A. Walker-Lee sold 947 shares of the firm's stock in a transaction dated Thursday, May 1st. The stock was sold at an average price of $412.83, for a total value of $390,950.01. Following the sale, the director directly owned 7,094 shares of the company's stock, valued at $2,928,616.02. This trade represents a 11.78% decrease in their ownership of the stock. The disclosure for this sale can be found here. 0.83% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in EME. Private Trust Co. NA grew its holdings in EMCOR Group by 28.6% in the 1st quarter. Private Trust Co. NA now owns 279 shares of the construction company's stock valued at $103,000 after buying an additional 62 shares during the last quarter. Janney Montgomery Scott LLC raised its position in EMCOR Group by 20.8% in the 1st quarter. Janney Montgomery Scott LLC now owns 19,796 shares of the construction company's stock valued at $7,317,000 after purchasing an additional 3,407 shares during the last quarter. Redwood Investment Management LLC bought a new position in EMCOR Group in the 4th quarter valued at $1,417,000. Cambridge Investment Research Advisors Inc. raised its position in shares of EMCOR Group by 146.6% during the first quarter. Cambridge Investment Research Advisors Inc. now owns 10,700 shares of the construction company's stock worth $3,955,000 after acquiring an additional 6,361 shares during the last quarter. Finally, Fifth Third Bancorp raised its position in shares of EMCOR Group by 17.5% during the first quarter. Fifth Third Bancorp now owns 844 shares of the construction company's stock worth $312,000 after acquiring an additional 126 shares during the last quarter. 92.59% of the stock is owned by institutional investors.

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.

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