Dycom Industries (NYSE:DY) Hits New 12-Month Low - Should You Sell?

Key Points

• Dycom shares fell to a new 52-week low of $270.48 and remain technically weak, trading well below their 50-day and 200-day moving averages after declining sharply since the latest earnings report.
• Despite the selloff, the company reported strong quarterly results, with EPS of $5.29 versus a $4.72 estimate and revenue up 45.6% year over year to $2.01 billion. Dycom also authorized a $150 million share-repurchase program.
• Analyst sentiment remains broadly positive, with a “Moderate Buy” consensus and a $502.92 average price target, while directors have recently purchased shares. However, some firms downgraded the stock to “Hold,” highlighting uncertainty after the post-earnings decline.

Dycom Industries, Inc. (NYSE:DY - Get Free Report) shares hit a new 52-week low during trading on Friday. The company traded as low as $270.48 and last traded at $272.4190, with a volume of 252955 shares traded. The stock had previously closed at $272.10.

Key Headlines Impacting Dycom Industries

Here are the key news stories impacting Dycom Industries this week:

• Positive Sentiment: Director Carmen Sabater purchased 350 shares at an average price of $280.62, increasing her holdings by 5.14%. Insider buying can signal management confidence that the recent decline has created value. Insider Buying: Dycom Industries Director Buys 350 Shares
• Positive Sentiment: Cantor Fitzgerald reaffirmed its “overweight” rating and assigned a $476 price target, implying substantial upside from recent trading levels. The firm cited Dycom’s growth prospects. Cantor Fitzgerald Rating
• Positive Sentiment: Dycom’s latest quarter exceeded expectations, with earnings per share of $5.29 versus the $4.72 consensus estimate and revenue of $2.01 billion, up 45.6% year over year. The company also authorized a $150 million share repurchase program, potentially supporting per-share value.
• Positive Sentiment: Zacks highlighted Dycom as a long-term growth stock, reflecting favorable style-score characteristics and expectations for continued expansion in telecommunications and utility infrastructure services. Why Dycom Industries Is a Top Growth Stock
• Neutral Sentiment: Analyst opinion remains broadly favorable, with a consensus “Moderate Buy” rating, though price targets have varied widely. The company recently presented at an industrials and services conference, giving investors additional detail on its growth outlook. Dycom Conference Transcript
• Negative Sentiment: The principal pressure on DY is the sharp decline since earnings and weak technical positioning: the stock is below its major moving averages and near its 52-week low. Zacks is assessing whether the shares can rebound after the post-earnings selloff. Dycom Shares After Earnings

Analysts Set New Price Targets

Several research firms have recently commented on DY. Wall Street Zen downgraded Dycom Industries from a "buy" rating to a "hold" rating in a research note on Saturday, September 19th. Zacks Research lowered shares of Dycom Industries from a "strong-buy" rating to a "hold" rating in a report on Monday, July 27th. Guggenheim restated a "buy" rating and set a $620.00 target price on shares of Dycom Industries in a research note on Thursday, September 17th. KeyCorp lifted their price target on shares of Dycom Industries from $423.00 to $429.00 and gave the company an "overweight" rating in a report on Monday. Finally, Cantor Fitzgerald reaffirmed an "overweight" rating and set a $476.00 price target on shares of Dycom Industries in a report on Thursday. Ten research analysts have rated the stock with a Buy rating and two have given a Hold rating to the company's stock. According to data from MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus target price of $502.92.

Dycom Industries Stock Up 0.7%

The company has a quick ratio of 2.24, a current ratio of 2.35 and a debt-to-equity ratio of 1.35. The company has a market capitalization of $8.26 billion, a PE ratio of 24.86, a PEG ratio of 0.48 and a beta of 1.49. The company's 50 day moving average is $357.42 and its two-hundred day moving average is $397.35.

Dycom Industries (NYSE:DY - Get Free Report) last announced its quarterly earnings results on Wednesday, August 26th. The construction company reported $5.29 EPS for the quarter, topping the consensus estimate of $4.72 by $0.57. Dycom Industries had a net margin of 4.79% and a return on equity of 25.30%. The business had revenue of $2.01 billion for the quarter, compared to analysts' expectations of $1.98 billion. During the same quarter in the previous year, the company earned $3.33 EPS. The business's quarterly revenue was up 45.6% compared to the same quarter last year. Dycom Industries has set its Q3 2027 guidance at 4.330-4.790 EPS. On average, analysts anticipate that Dycom Industries, Inc. will post 15.94 earnings per share for the current year.

Dycom Industries declared that its board has authorized a stock repurchase plan on Wednesday, August 26th that permits the company to buyback $150.00 million in shares. This buyback authorization permits the construction company to buy up to 1.4% of its stock through open market purchases. Stock buyback plans are generally a sign that the company's board of directors believes its stock is undervalued.

Insider Buying and Selling

In other news, Director David Fallon acquired 700 shares of the firm's stock in a transaction dated Tuesday, September 1st. The shares were acquired at an average cost of $286.92 per share, with a total value of $200,844.00. Following the acquisition, the director directly owned 1,043 shares of the company's stock, valued at approximately $299,257.56. The trade was a 204.08% increase in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, Director Carmen Sabater bought 350 shares of the stock in a transaction dated Wednesday, September 23rd. The shares were purchased at an average price of $280.62 per share, with a total value of $98,217.00. Following the completion of the transaction, the director directly owned 7,154 shares in the company, valued at approximately $2,007,555.48. The trade was a 5.14% increase in their position. The disclosure for this purchase is available in the SEC filing. Insiders own 1.22% of the company's stock.

Hedge Funds Weigh In On Dycom Industries

Several institutional investors have recently bought and sold shares of the business. Tidal Investments LLC increased its holdings in shares of Dycom Industries by 25.2% in the 2nd quarter. Tidal Investments LLC now owns 48,093 shares of the construction company's stock worth $24,315,000 after buying an additional 9,691 shares during the last quarter. WINTON GROUP Ltd lifted its holdings in shares of Dycom Industries by 173.3% in the 2nd quarter. WINTON GROUP Ltd now owns 1,640 shares of the construction company's stock valued at $829,000 after acquiring an additional 1,040 shares during the last quarter. Integrated Wealth Concepts LLC bought a new position in shares of Dycom Industries in the 2nd quarter valued at about $91,000. NewEdge Advisors LLC grew its position in Dycom Industries by 1,124.4% in the second quarter. NewEdge Advisors LLC now owns 551 shares of the construction company's stock worth $279,000 after acquiring an additional 506 shares in the last quarter. Finally, Arizona State Retirement System grew its position in Dycom Industries by 0.5% in the second quarter. Arizona State Retirement System now owns 8,283 shares of the construction company's stock worth $4,188,000 after acquiring an additional 44 shares in the last quarter. Institutional investors own 98.33% of the company's stock.

About Dycom Industries

Dycom Industries, Inc is a specialty contractor that provides infrastructure construction and maintenance services for the telecommunications and utility industries. The company supports the expansion, upgrade and upkeep of communications networks, including fiber-optic, broadband, wireless and other voice and data systems.

Its services include engineering and design, aerial and underground construction, fiber and cable installation, wireless infrastructure deployment, network maintenance, utility locating, vegetation management and emergency restoration.

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