IES (NASDAQ:IESC) Downgraded to "Buy" Rating by Wall Street Zen

Key Points

• Wall Street Zen downgraded IES from “strong-buy” to “buy,” while other analysts have also turned more cautious, including Freedom Capital cutting its view to “hold.” The stock now carries a consensus rating of Moderate Buy with a $458 price target.
• IES reported mixed quarterly results: earnings of $4.16 per share beat estimates of $3.95, but revenue of $974.2 million came in below the $1.01 billion expected by analysts. The company still showed strong profitability with a 10.40% net margin and 33.97% return on equity.
• Insider selling has been notable, with CEO Matthew Simmes and Chairman Jeffrey L. Et Al Gendell both selling shares recently. Over the last three months, insiders sold 87,315 shares worth about $55.5 million, which may weigh on investor sentiment.

IES (NASDAQ:IESC - Get Free Report) was downgraded by investment analysts at Wall Street Zen from a "strong-buy" rating to a "buy" rating in a research report issued on Sunday.

IESC has been the subject of a number of other reports. Freedom Capital lowered IES from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, May 5th. Loop Capital set a $458.00 price objective on IES in a report on Tuesday, February 3rd. One investment analyst has rated the stock with a Buy rating and one has issued a Hold rating to the company's stock. According to data from MarketBeat, IES currently has a consensus rating of "Moderate Buy" and a consensus price target of $458.00.

IES Price Performance

Shares of NASDAQ IESC opened at $666.70 on Friday. The company has a 50-day simple moving average of $511.80 and a 200-day simple moving average of $456.24. The company has a market cap of $13.29 billion, a PE ratio of 35.56 and a beta of 1.81. IES has a 12 month low of $235.99 and a 12 month high of $688.51.

IES (NASDAQ:IESC - Get Free Report) last posted its quarterly earnings data on Friday, May 1st. The technology company reported $4.16 earnings per share (EPS) for the quarter, beating the consensus estimate of $3.95 by $0.21. IES had a net margin of 10.40% and a return on equity of 33.97%. The business had revenue of $974.20 million during the quarter, compared to analysts' expectations of $1.01 billion.

Insider Transactions at IES

In other news, CEO Matthew J. Simmes sold 7,000 shares of the company's stock in a transaction on Tuesday, May 5th. The stock was sold at an average price of $658.24, for a total transaction of $4,607,680.00. Following the completion of the sale, the chief executive officer directly owned 86,575 shares of the company's stock, valued at $56,987,128. This represents a 7.48% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, Chairman Jeffrey L. Et Al Gendell sold 7,052 shares of the stock in a transaction on Friday, May 8th. The shares were sold at an average price of $674.25, for a total value of $4,754,811.00. Following the completion of the transaction, the chairman owned 10,540,005 shares of the company's stock, valued at $7,106,598,371.25. This trade represents a 0.07% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 87,315 shares of company stock valued at $55,468,083 over the last three months. Company insiders own 56.43% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in the company. Florida Financial Advisors LLC lifted its position in shares of IES by 18.7% in the 1st quarter. Florida Financial Advisors LLC now owns 4,548 shares of the technology company's stock valued at $2,167,000 after acquiring an additional 715 shares in the last quarter. Parallel Advisors LLC grew its position in IES by 121.4% during the 1st quarter. Parallel Advisors LLC now owns 62 shares of the technology company's stock worth $30,000 after purchasing an additional 34 shares in the last quarter. SEB Asset Management AB acquired a new stake in IES during the 1st quarter valued at $238,000. Swiss National Bank raised its stake in IES by 0.5% during the 1st quarter. Swiss National Bank now owns 17,740 shares of the technology company's stock valued at $8,453,000 after purchasing an additional 80 shares during the period. Finally, Allspring Global Investments Holdings LLC purchased a new stake in shares of IES in the first quarter valued at $332,000. 86.60% of the stock is owned by hedge funds and other institutional investors.

Trending Headlines about IES

Here are the key news stories impacting IES this week:

• Positive Sentiment: IES reported quarterly earnings of $4.16 per share, topping analyst estimates of $3.95 and reinforcing the company’s strong profitability profile. Revenue came in below expectations, but the earnings beat may still support the stock’s higher valuation. IES earnings and stock page
• Neutral Sentiment: Wall Street Zen recently upgraded IESC from “buy” to “strong-buy,” while Freedom Capital downgraded the stock from “strong-buy” to “hold.” The mixed analyst signals suggest some disagreement about how much upside remains after the stock’s sharp run. Article on Freedom Capital downgrade
• Negative Sentiment: CEO Matthew Simmes sold 7,000 shares, and Director Todd M. Cleveland sold 11,578 shares plus an additional 922 shares in separate transactions. Large insider sales can raise concern that executives and directors see less near-term upside at current levels. Insider selling alert
• Negative Sentiment: Chairman Jeffrey L. Et Al Gendell also sold 40,103 shares and then another 7,052 shares, adding to the negative sentiment around insider activity. Although the sales were small relative to his overall stake, the pace of selling may weigh on investor confidence. SEC filing

IES Company Profile

IES Holdings, Inc NASDAQ: IESC is a specialty contractor providing integrated electrical and mechanical construction services, engineering, and systems integration across North America. The company focuses on delivering end-to-end solutions for commercial, industrial and mission-critical facilities, combining design, build, commission and maintenance capabilities to serve a wide range of markets.

Through its subsidiaries, IES offers a comprehensive portfolio of services including electrical distribution and infrastructure, mechanical contracting, process piping, controls and automation, energy management, and ongoing service and maintenance.

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