Orbis Allan Gray Ltd Takes $10.70 Million Position in EMCOR Group, Inc. $EME

Key Points

• Orbis Allan Gray Ltd has acquired a new stake in EMCOR Group, purchasing 28,937 shares valued at approximately $10.7 million, bringing its ownership to 0.06% of the company.
• EMCOR Group reported a significant earnings surprise for the second quarter, with $6.72 EPS exceeding estimates by $1.04, and a revenue of $4.3 billion, which is up 17.4% year-over-year.
• The company recently declared a quarterly dividend of $0.25 per share, reflecting a 0.2% yield and a low dividend payout ratio of 4.15%.

Orbis Allan Gray Ltd acquired a new position in shares of EMCOR Group, Inc. (NYSE:EME - Free Report) in the first quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund acquired 28,937 shares of the construction company's stock, valued at approximately $10,696,000. Orbis Allan Gray Ltd owned 0.06% of EMCOR Group as of its most recent SEC filing.

A number of other institutional investors have also made changes to their positions in the stock. Select Equity Group L.P. grew its stake in shares of EMCOR Group by 1.6% during the fourth quarter. Select Equity Group L.P. now owns 1,064,003 shares of the construction company's stock worth $482,951,000 after purchasing an additional 16,563 shares during the period. Northern Trust Corp lifted its holdings in EMCOR Group by 3.7% during the first quarter. Northern Trust Corp now owns 571,487 shares of the construction company's stock worth $211,239,000 after acquiring an additional 20,604 shares in the last quarter. Pacer Advisors Inc. lifted its holdings in EMCOR Group by 3,878.2% during the first quarter. Pacer Advisors Inc. now owns 534,585 shares of the construction company's stock worth $197,599,000 after acquiring an additional 521,147 shares in the last quarter. Burgundy Asset Management Ltd. lifted its holdings in shares of EMCOR Group by 6.9% in the first quarter. Burgundy Asset Management Ltd. now owns 515,522 shares of the construction company's stock valued at $190,552,000 after purchasing an additional 33,069 shares in the last quarter. Finally, Allspring Global Investments Holdings LLC boosted its position in shares of EMCOR Group by 6.5% during the first quarter. Allspring Global Investments Holdings LLC now owns 457,661 shares of the construction company's stock worth $171,852,000 after buying an additional 28,038 shares during the period. 92.59% of the stock is owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

Several research firms have recently weighed in on EME. TD Securities began coverage on EMCOR Group in a research report on Friday, June 27th. They set a "buy" rating for the company. Baird R W raised EMCOR Group to a "strong-buy" rating in a research report on Friday, June 27th. Jefferies Financial Group started coverage on EMCOR Group in a research report on Friday, June 27th. They set a "buy" rating on the stock. Northcoast Research downgraded EMCOR Group from a "buy" rating to a "neutral" rating and set a $500.00 target price on the stock. in a report on Thursday, August 7th. Finally, Stifel Nicolaus raised their target price on EMCOR Group from $503.00 to $597.00 and gave the company a "buy" rating in a report on Friday, July 11th. One analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average price target of $594.50.

EMCOR Group Stock Performance

Shares of NYSE:EME traded up $6.05 during mid-day trading on Wednesday, reaching $626.46. The company had a trading volume of 303,164 shares, compared to its average volume of 472,732. The company has a current ratio of 1.18, a quick ratio of 1.15 and a debt-to-equity ratio of 0.08. The firm has a market cap of $28.04 billion, a price-to-earnings ratio of 25.99 and a beta of 1.28. The company's 50-day moving average price is $588.43 and its 200-day moving average price is $479.47. EMCOR Group, Inc. has a one year low of $320.89 and a one year high of $667.64.

EMCOR Group (NYSE:EME - Get Free Report) last issued its earnings results on Thursday, July 31st. The construction company reported $6.72 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $5.68 by $1.04. EMCOR Group had a net margin of 7.07% and a return on equity of 38.01%. The business had revenue of $4.30 billion for the quarter, compared to analysts' expectations of $4.10 billion. During the same quarter in the previous year, the firm posted $5.25 EPS. The business's revenue for the quarter was up 17.4% compared to the same quarter last year. EMCOR Group has set its FY 2025 guidance at 24.500-25.750 EPS. As a group, equities research analysts anticipate that EMCOR Group, Inc. will post 20.74 EPS for the current fiscal year.

EMCOR Group Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Thursday, July 31st. Stockholders of record on Tuesday, July 15th were given a dividend of $0.25 per share. This represents a $1.00 dividend on an annualized basis and a dividend yield of 0.2%. The ex-dividend date was Tuesday, July 15th. EMCOR Group's payout ratio is 4.15%.

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.