Jacobs Solutions (NYSE:J) Reaches New 1-Year Low on Analyst Downgrade

Key Points

• Jacobs Solutions shares hit a new 52-week low after Weiss Ratings downgraded the stock from hold (c) to hold (c-), with the shares falling to as low as $118.51 from a prior close of $122.76.
• Despite the downgrade, analyst sentiment is mixed but generally constructive: the stock still carries a consensus rating of “Moderate Buy” and an average target price of $153.40, though several firms recently trimmed price targets.
• The company reported strong quarterly results, beating EPS and revenue estimates, and also announced a quarterly dividend of $0.36 per share, payable June 19, for an annualized yield of about 1.2%.

Jacobs Solutions Inc. (NYSE:J - Get Free Report)'s share price reached a new 52-week low during mid-day trading on Friday after Weiss Ratings downgraded the stock from a hold (c) rating to a hold (c-) rating. The stock traded as low as $118.51 and last traded at $118.4750, with a volume of 1003460 shares. The stock had previously closed at $122.76.

Several other brokerages have also weighed in on J. Robert W. Baird decreased their price objective on shares of Jacobs Solutions from $130.00 to $126.00 and set a "neutral" rating for the company in a report on Monday, April 13th. Citigroup raised their price objective on shares of Jacobs Solutions from $180.00 to $181.00 and gave the stock a "buy" rating in a report on Wednesday. Zacks Research raised shares of Jacobs Solutions from a "strong sell" rating to a "hold" rating in a report on Thursday, February 5th. Wells Fargo & Company decreased their price objective on shares of Jacobs Solutions from $137.00 to $131.00 and set an "equal weight" rating for the company in a report on Thursday. Finally, KeyCorp decreased their price objective on shares of Jacobs Solutions from $154.00 to $150.00 and set an "overweight" rating for the company in a report on Wednesday. Six analysts have rated the stock with a Buy rating and six have given a Hold rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $153.40.

Insiders Place Their Bets

In related news, President Shannon Miller sold 1,440 shares of Jacobs Solutions stock in a transaction dated Friday, March 6th. The shares were sold at an average price of $134.13, for a total value of $193,147.20. Following the sale, the president directly owned 25,344 shares in the company, valued at $3,399,390.72. This trade represents a 5.38% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. 0.48% of the stock is currently owned by corporate insiders.

Institutional Trading of Jacobs Solutions

Hedge funds have recently bought and sold shares of the company. Measured Wealth Private Client Group LLC bought a new stake in Jacobs Solutions in the 3rd quarter valued at about $27,000. Princeton Global Asset Management LLC bought a new stake in Jacobs Solutions in the 4th quarter valued at about $30,000. Central Pacific Bank Trust Division bought a new stake in Jacobs Solutions in the 4th quarter valued at about $31,000. Godsey & Gibb Inc. lifted its position in Jacobs Solutions by 121.0% in the 3rd quarter. Godsey & Gibb Inc. now owns 221 shares of the company's stock valued at $33,000 after purchasing an additional 121 shares during the last quarter. Finally, Geneos Wealth Management Inc. lifted its position in Jacobs Solutions by 65.4% in the 3rd quarter. Geneos Wealth Management Inc. now owns 220 shares of the company's stock valued at $33,000 after purchasing an additional 87 shares during the last quarter. 85.65% of the stock is currently owned by institutional investors.

Jacobs Solutions Stock Performance

The stock has a market capitalization of $13.99 billion, a P/E ratio of 36.79, a P/E/G ratio of 1.30 and a beta of 0.73. The company's 50-day moving average is $129.64 and its two-hundred day moving average is $137.46. The company has a current ratio of 1.43, a quick ratio of 1.33 and a debt-to-equity ratio of 1.24.

Jacobs Solutions (NYSE:J - Get Free Report) last issued its quarterly earnings data on Tuesday, May 5th. The company reported $1.75 earnings per share for the quarter, beating the consensus estimate of $1.64 by $0.11. Jacobs Solutions had a net margin of 2.92% and a return on equity of 22.29%. The firm had revenue of $2.33 billion for the quarter, compared to the consensus estimate of $2.28 billion. During the same period last year, the firm posted $1.43 EPS. Jacobs Solutions's quarterly revenue was up 8.9% compared to the same quarter last year. Jacobs Solutions has set its FY 2026 guidance at 7.100-7.350 EPS. As a group, sell-side analysts anticipate that Jacobs Solutions Inc. will post 7.18 EPS for the current fiscal year.

Jacobs Solutions Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, June 19th. Shareholders of record on Friday, May 22nd will be given a dividend of $0.36 per share. This represents a $1.44 dividend on an annualized basis and a dividend yield of 1.2%. The ex-dividend date is Friday, May 22nd. Jacobs Solutions's payout ratio is 44.72%.

Jacobs Solutions Company Profile

Jacobs Solutions Inc, commonly known as Jacobs, is a global professional services firm that provides technical, engineering, scientific and project delivery expertise across a broad range of industries. Founded in 1947 by Joseph J. Jacobs in Pasadena, California, the company evolved from a regional engineering consultancy into a diversified provider of design, program and construction management, operations and maintenance, and scientific services for complex infrastructure and industrial programs.

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