Hsbc Holdings PLC Buys New Stake in Dycom Industries, Inc. $DY

Key Points

• HSBC Holdings purchased 20,760 Dycom shares in the second quarter, worth approximately $10.5 million and representing a 0.07% stake. Institutional investors collectively own 98.33% of the company.
• Dycom’s second-quarter results exceeded expectations, with EPS of $5.29 versus $4.72 expected and revenue of $2.01 billion, up 45.6% year over year. The board also authorized a $150 million share-repurchase program.
• Analysts maintain a generally bullish outlook, with 11 Buy ratings and one Hold rating and a consensus price target of $514. However, third-quarter EPS guidance of $4.33–$4.79 and a $150 million wireless-revenue deferral have pressured near-term sentiment.

Hsbc Holdings PLC bought a new position in Dycom Industries, Inc. (NYSE:DY - Free Report) during the 2nd quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm bought 20,760 shares of the construction company's stock, valued at approximately $10,468,000. Hsbc Holdings PLC owned 0.07% of Dycom Industries at the end of the most recent reporting period.

Other institutional investors and hedge funds have also recently bought and sold shares of the company. Northwestern Mutual Wealth Management Co. increased its stake in shares of Dycom Industries by 265,593,055.6% in the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 23,903,384 shares of the construction company's stock worth $8,076,953,000 after purchasing an additional 23,903,375 shares during the period. BlackRock Inc. bought a new stake in Dycom Industries during the 2nd quarter valued at approximately $1,513,523,000. Hill City Capital LP acquired a new stake in Dycom Industries in the 2nd quarter valued at approximately $510,536,693. Bank of New York Mellon Corp bought a new position in Dycom Industries in the 2nd quarter worth approximately $90,216,000. Finally, First Trust Advisors LP lifted its holdings in shares of Dycom Industries by 27.8% during the first quarter. First Trust Advisors LP now owns 798,699 shares of the construction company's stock worth $270,615,000 after buying an additional 173,528 shares during the last quarter. Institutional investors and hedge funds own 98.33% of the company's stock.

Analyst Upgrades and Downgrades

Several research firms have recently weighed in on DY. Weiss Ratings raised Dycom Industries from a "buy (b-)" rating to a "buy (b)" rating in a research report on Thursday, August 13th. Wall Street Zen lowered shares of Dycom Industries from a "strong-buy" rating to a "buy" rating in a research report on Saturday, July 25th. Guggenheim upped their target price on shares of Dycom Industries from $575.00 to $620.00 and gave the company a "buy" rating in a research note on Thursday, May 28th. Zacks Research downgraded shares of Dycom Industries from a "strong-buy" rating to a "hold" rating in a report on Monday, July 27th. Finally, UBS Group dropped their price objective on shares of Dycom Industries from $611.00 to $525.00 and set a "buy" rating on the stock in a report on Thursday. Eleven analysts have rated the stock with a Buy rating and one has given a Hold rating to the company's stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $514.00.

More Dycom Industries News

Here are the key news stories impacting Dycom Industries this week:

• Positive Sentiment: Dycom reported second-quarter earnings of $5.29 per share, above the $4.72 consensus estimate, while revenue reached approximately $2.01 billion versus expectations of $1.98 billion. Revenue increased 45.6% year over year, supported by communications infrastructure and digital-infrastructure demand. Dycom Industries beats Q2 forecasts as digital infrastructure demand accelerates
• Positive Sentiment: Management raised its fiscal 2027 revenue outlook, citing continued strength in fiber, data-center connectivity and Building Systems. These trends point to a multiyear opportunity from fiber-network expansion and AI-related infrastructure spending. DY Q2 Earnings Call Focuses on Fiber Demand and Higher Outlook
• Positive Sentiment: The board authorized a $150 million share-repurchase program, equivalent to as much as 1.4% of outstanding shares. The authorization may support per-share results and signals that management believes the stock is undervalued. Stock Buyback Program Declared by Dycom Industries
• Neutral Sentiment: JPMorgan, UBS, Wells Fargo, KeyCorp and Cantor Fitzgerald lowered their price targets following the earnings report but retained bullish ratings, including “overweight” or “buy.” The target cuts reflect reduced near-term assumptions rather than a broadly negative long-term view.
• Negative Sentiment: The main pressure is fiscal third-quarter EPS guidance of $4.33 to $4.79, which is below analyst expectations. Investors are also concerned about a $150 million wireless-revenue deferral, helping explain why the strong quarterly beat has not translated into positive stock performance. Why Dycom Industries Stock Is Plummeting This Week

Dycom Industries Stock Performance

DY opened at $295.11 on Friday. The stock's 50 day simple moving average is $418.01 and its 200-day simple moving average is $413.73. The company has a current ratio of 2.35, a quick ratio of 2.46 and a debt-to-equity ratio of 1.35. The stock has a market cap of $8.86 billion, a PE ratio of 26.85, a P/E/G ratio of 0.54 and a beta of 1.54. Dycom Industries, Inc. has a 1 year low of $242.55 and a 1 year high of $566.47.

Dycom Industries (NYSE:DY - Get Free Report) last issued its earnings results on Wednesday, August 26th. The construction company reported $5.29 EPS for the quarter, topping the consensus estimate of $4.72 by $0.57. Dycom Industries had a return on equity of 25.30% and a net margin of 4.79%.The firm had revenue of $2.01 billion during the quarter, compared to analysts' expectations of $1.98 billion. During the same period last year, the business earned $3.33 earnings per share. Dycom Industries's quarterly revenue was up 45.6% compared to the same quarter last year. Dycom Industries has set its Q3 2027 guidance at 4.330-4.790 EPS. Sell-side analysts forecast that Dycom Industries, Inc. will post 15.44 EPS for the current year.

Dycom Industries announced that its board has authorized a share buyback plan on Wednesday, August 26th that allows the company to repurchase $150.00 million in outstanding shares. This repurchase authorization allows the construction company to buy up to 1.4% of its shares through open market purchases. Shares repurchase plans are usually an indication that the company's leadership believes its stock is undervalued.

About Dycom Industries

Dycom Industries, Inc NYSE: DY is a leading provider of specialty contracting services to the telecommunications industry in North America. The company delivers engineering, construction, installation and maintenance solutions for communications infrastructure, supporting a broad range of network technologies and system architectures. Dycom's services span outside plant construction, cable placement, fiber optic deployment, wireless and wireline network engineering, as well as testing and turn-up services for voice, data and video applications.

Dycom's customer base includes major telecommunications carriers, cable operators, utility companies and competitive local exchange carriers.

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