Ameresco (NYSE:AMRC) Trading Down 6.8% - Time to Sell?

Key Points

• Ameresco shares fell 6.8% to about $21.19 in mid-day trading, below both the 50-day ($23.46) and 200-day ($26.36) moving averages.
• Analyst sentiment remains cautiously positive, with a “Moderate Buy” consensus and an average price target of $41.89, although several firms recently reduced their targets.
• The company met quarterly EPS expectations at $0.20 and reported 9.1% year-over-year revenue growth, while insiders have purchased approximately $1.78 million of stock over the past 90 days.

Ameresco, Inc. (NYSE:AMRC - Get Free Report)'s stock price traded down 6.8% during mid-day trading on Thursday . The stock traded as low as $21.26 and last traded at $21.1850. 88,255 shares traded hands during mid-day trading, a decline of 85% from the average session volume of 596,616 shares. The stock had previously closed at $22.73.

Wall Street Analysts Forecast Growth

A number of equities research analysts have issued reports on the company. Cantor Fitzgerald cut their price target on Ameresco from $44.00 to $36.00 and set an "overweight" rating for the company in a research note on Thursday, August 27th. Weiss Ratings upgraded shares of Ameresco from a "sell (d)" rating to a "sell (d+)" rating in a research note on Wednesday, August 5th. Robert W. Baird reissued a "neutral" rating and issued a $32.00 price objective (down from $36.00) on shares of Ameresco in a report on Tuesday, August 18th. Canaccord Genuity Group boosted their target price on shares of Ameresco from $59.00 to $62.00 and gave the company a "buy" rating in a research report on Tuesday, August 4th. Finally, Zacks Research cut shares of Ameresco from a "strong-buy" rating to a "hold" rating in a report on Wednesday, September 2nd. One equities research analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating, six have given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average price target of $41.89.

Ameresco Stock Down 4.2%

The company has a 50-day moving average of $23.46 and a two-hundred day moving average of $26.36. The company has a debt-to-equity ratio of 1.33, a current ratio of 1.67 and a quick ratio of 1.66. The company has a market capitalization of $1.16 billion, a PE ratio of 41.92, a P/E/G ratio of 1.80 and a beta of 2.63.

Ameresco (NYSE:AMRC - Get Free Report) last issued its quarterly earnings results on Monday, August 3rd. The utilities provider reported $0.20 EPS for the quarter, hitting analysts' consensus estimates of $0.20. Ameresco had a return on equity of 2.82% and a net margin of 1.40%.The business had revenue of $515.46 million during the quarter, compared to analysts' expectations of $465.18 million. During the same quarter in the prior year, the business posted $0.27 earnings per share. The business's quarterly revenue was up 9.1% on a year-over-year basis. Ameresco has set its FY 2026 guidance at 1.150-1.350 EPS. Sell-side analysts anticipate that Ameresco, Inc. will post 1.22 earnings per share for the current fiscal year.

Insider Activity

In other news, Director Jennifer Miller bought 2,000 shares of the firm's stock in a transaction on Monday, August 24th. The shares were bought at an average price of $20.96 per share, for a total transaction of $41,920.00. Following the purchase, the director owned 34,546 shares in the company, valued at approximately $724,084.16. The trade was a 6.15% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Brian Cox purchased 4,625 shares of the stock in a transaction on Friday, August 21st. The shares were purchased at an average cost of $21.64 per share, for a total transaction of $100,085.00. Following the acquisition, the director directly owned 44,325 shares of the company's stock, valued at approximately $959,193. This represents a 11.65% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. Over the last 90 days, insiders purchased 75,025 shares of company stock valued at $1,778,963. 45.10% of the stock is owned by insiders.

Institutional Trading of Ameresco

Institutional investors and hedge funds have recently modified their holdings of the company. Fifth Third Bancorp bought a new position in Ameresco in the 1st quarter worth $44,000. Caitong International Asset Management Co. Ltd bought a new stake in Ameresco during the fourth quarter valued at about $48,000. Optiver Holding B.V. lifted its position in shares of Ameresco by 550.8% in the first quarter. Optiver Holding B.V. now owns 2,369 shares of the utilities provider's stock valued at $60,000 after acquiring an additional 2,005 shares in the last quarter. Northside Capital Management LLC purchased a new position in shares of Ameresco in the second quarter valued at about $207,000. Finally, Entropy Technologies LP bought a new position in shares of Ameresco in the first quarter worth about $216,000. 99.24% of the stock is currently owned by institutional investors.

About Ameresco

Ameresco, Inc is an energy solutions and renewable energy company that develops, designs, engineers, and operates projects intended to improve energy efficiency, reduce energy costs, and support decarbonization. The company serves public-sector, commercial, industrial, healthcare, education, and utility customers.

Ameresco's services include energy-efficiency upgrades, energy infrastructure modernization, renewable energy development, battery energy storage, distributed energy systems, and operations and maintenance.

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