IES (NASDAQ:IESC) Shares Gap Up on Strong Earnings

Key Points

• IES Holdings shares surged 27.2% after opening at $677.98 versus a prior close of $571.54, later trading near $721.39 following strong earnings.
• The company reported quarterly EPS of $6.70, beating analysts’ $4.83 consensus by $1.87; it posted a 33.97% return on equity and a 10.40% net margin.
• Analyst sentiment remains a “Moderate Buy,” although the $458 consensus price target is below the current share price. Insiders have sold 208,102 shares worth roughly $146.5 million over the past 90 days.

Shares of IES Holdings, Inc. (NASDAQ:IESC - Get Free Report) gapped up prior to trading on Friday following a better than expected earnings announcement. The stock had previously closed at $571.54, but opened at $677.98. IES shares last traded at $721.3850, with a volume of 37,983 shares changing hands.

The technology company reported $6.70 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $4.83 by $1.87. IES had a return on equity of 33.97% and a net margin of 10.40%.

Analyst Upgrades and Downgrades

Several analysts have recently commented on the company. Freedom Capital cut IES from a "strong-buy" rating to a "hold" rating in a report on Tuesday, May 5th. Wall Street Zen downgraded shares of IES from a "strong-buy" rating to a "buy" rating in a report on Sunday, May 10th. Finally, Weiss Ratings reaffirmed a "buy (b)" rating on shares of IES in a research note on Thursday, June 18th. One 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.com, the company presently has an average rating of "Moderate Buy" and a consensus target price of $458.00.

Insider Buying and Selling at IES

In related news, CFO Tracy Mclauchlin sold 3,000 shares of the company's stock in a transaction on Friday, May 8th. The shares were sold at an average price of $662.61, for a total transaction of $1,987,830.00. Following the completion of the sale, the chief financial officer directly owned 62,525 shares of the company's stock, valued at approximately $41,429,690.25. This represents a 4.58% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Todd M. Cleveland sold 11,578 shares of the stock in a transaction on Friday, May 8th. The shares were sold at an average price of $663.52, for a total value of $7,682,234.56. Following the completion of the sale, the director owned 65,817 shares of the company's stock, valued at approximately $43,670,895.84. This represents a 14.96% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders have sold 208,102 shares of company stock worth $146,518,202. Insiders own 56.43% of the company's stock.

Institutional Investors Weigh In On IES

Institutional investors and hedge funds have recently modified their holdings of the stock. Northwestern Mutual Wealth Management Co. raised its holdings in shares of IES by 324,337.8% during the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 120,042 shares of the technology company's stock valued at $46,699,000 after buying an additional 120,005 shares during the period. Norges Bank purchased a new position in IES in the 4th quarter worth approximately $40,578,000. First Trust Advisors LP boosted its holdings in IES by 40.4% in the 1st quarter. First Trust Advisors LP now owns 349,163 shares of the technology company's stock worth $166,366,000 after acquiring an additional 100,425 shares during the period. Parsifal Capital Management LP acquired a new stake in IES in the third quarter valued at approximately $25,768,000. Finally, Arrowstreet Capital Limited Partnership grew its position in IES by 25.3% in the fourth quarter. Arrowstreet Capital Limited Partnership now owns 164,722 shares of the technology company's stock valued at $64,080,000 after acquiring an additional 33,273 shares in the last quarter. Hedge funds and other institutional investors own 86.60% of the company's stock.

IES Stock Up 27.2%

The company has a market cap of $14.48 billion, a PE ratio of 38.31 and a beta of 1.78. The business's 50 day moving average price is $673.17 and its 200-day moving average price is $569.44.

About IES

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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