MYR Group (NASDAQ:MYRG) Trading Down 7.3% - Should You Sell?

Key Points

• MYR Group shares fell 7.3% on Wednesday, trading as low as $468 and closing well below the prior day’s $500.40 level. Trading volume was sharply below average, with about 28,396 shares changing hands.
• Despite the stock drop, analysts remain generally constructive: MYR Group has a “Moderate Buy” consensus and an average price target of $358.17, with some firms assigning much higher targets, including $503.00. Recent commentary included a rating upgrade from Zacks Research to “strong-buy.”
• The company recently posted better-than-expected quarterly results, reporting EPS of $2.99 versus estimates of $2.09 and revenue of $1 billion, up 20% year over year. However, two directors sold shares in early June, and the stock has still been volatile amid a high valuation and mixed analyst views.

Shares of MYR Group, Inc. (NASDAQ:MYRG - Get Free Report) fell 7.3% during trading on Wednesday . The stock traded as low as $468.00 and last traded at $464.0570. Approximately 28,396 shares traded hands during mid-day trading, a decline of 90% from the average daily volume of 276,219 shares. The stock had previously closed at $500.40.

Wall Street Analysts Forecast Growth

Several brokerages have issued reports on MYRG. Zacks Research raised shares of MYR Group from a "hold" rating to a "strong-buy" rating in a report on Tuesday, March 3rd. Stifel Nicolaus set a $503.00 price objective on shares of MYR Group in a report on Monday, May 4th. Oppenheimer reissued a "market perform" rating on shares of MYR Group in a research note on Thursday, June 11th. Robert W. Baird set a $373.00 price target on shares of MYR Group in a research report on Thursday, April 30th. Finally, The Goldman Sachs Group raised their price target on shares of MYR Group from $248.00 to $296.00 and gave the stock a "neutral" rating in a research note on Tuesday, March 3rd. Two analysts have rated the stock with a Strong Buy rating, three have issued a Buy rating and four have issued a Hold rating to the company. According to MarketBeat.com, MYR Group presently has an average rating of "Moderate Buy" and an average price target of $358.17.

MYR Group Trading Down 6.6%

The firm has a market cap of $7.28 billion, a P/E ratio of 51.82 and a beta of 1.32. The company has a current ratio of 1.31, a quick ratio of 1.31 and a debt-to-equity ratio of 0.01. The company's fifty day moving average price is $435.71 and its two-hundred day moving average price is $321.73.

MYR Group (NASDAQ:MYRG - Get Free Report) last released its quarterly earnings results on Wednesday, April 29th. The utilities provider reported $2.99 EPS for the quarter, beating analysts' consensus estimates of $2.09 by $0.90. MYR Group had a net margin of 3.71% and a return on equity of 22.14%. The firm had revenue of $1 billion for the quarter, compared to analyst estimates of $932.45 million. During the same period in the previous year, the business earned $1.45 earnings per share. The company's revenue for the quarter was up 20.0% compared to the same quarter last year. As a group, sell-side analysts predict that MYR Group, Inc. will post 11.43 EPS for the current fiscal year.

Insiders Place Their Bets

In other MYR Group news, Director Kenneth Michael Hartwick sold 3,500 shares of MYR Group stock in a transaction on Wednesday, June 3rd. The stock was sold at an average price of $450.50, for a total value of $1,576,750.00. Following the completion of the transaction, the director owned 18,631 shares in the company, valued at approximately $8,393,265.50. The trade was a 15.81% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, Director Donald C.I. Lucky sold 14,675 shares of the business's stock in a transaction on Wednesday, June 3rd. The stock was sold at an average price of $449.53, for a total value of $6,596,852.75. Following the completion of the transaction, the director directly owned 5,579 shares in the company, valued at approximately $2,507,927.87. This represents a 72.45% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Company insiders own 1.90% of the company's stock.

Hedge Funds Weigh In On MYR Group

A number of large investors have recently modified their holdings of MYRG. Royal Bank of Canada grew its stake in shares of MYR Group by 20.8% during the first quarter. Royal Bank of Canada now owns 12,791 shares of the utilities provider's stock valued at $1,447,000 after purchasing an additional 2,205 shares during the last quarter. AQR Capital Management LLC lifted its holdings in MYR Group by 124.5% during the 1st quarter. AQR Capital Management LLC now owns 10,898 shares of the utilities provider's stock worth $1,232,000 after buying an additional 6,044 shares in the last quarter. Goldman Sachs Group Inc. boosted its position in MYR Group by 0.7% in the 1st quarter. Goldman Sachs Group Inc. now owns 203,356 shares of the utilities provider's stock valued at $22,998,000 after buying an additional 1,437 shares during the last quarter. Cetera Investment Advisers acquired a new stake in shares of MYR Group in the 2nd quarter valued at $221,000. Finally, Invesco Ltd. raised its position in shares of MYR Group by 26.9% during the second quarter. Invesco Ltd. now owns 153,512 shares of the utilities provider's stock worth $27,855,000 after acquiring an additional 32,544 shares during the last quarter. 88.90% of the stock is currently owned by institutional investors and hedge funds.

About MYR Group

MYR Group Inc NASDAQ: MYRG is a specialty electrical contractor that provides a broad array of construction, maintenance and emergency restoration services to utility, commercial, industrial and renewable energy customers. The company was formed in 1995 through the consolidation of several regional specialty contractors and has since expanded its capabilities to support complex transmission and distribution projects, substation installations, communication and wireless infrastructure, as well as renewable power interconnections.

Through a network of operating subsidiaries, MYR Group delivers turnkey solutions that include overhead and underground line construction, substation and switchgear installation, substation maintenance and testing, and storm restoration services.

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