Dycom Industries (NYSE:DY) Sets New 1-Year Low - Here's Why

Key Points

• Dycom shares hit a new 52-week low, trading as low as $265.09, well below their 50-day and 200-day moving averages of $345.48 and $394.75.
• Analyst sentiment remains broadly positive, with 10 Buy ratings and two Holds, a “Moderate Buy” consensus, and an average price target of $502.92, although some analysts recently reduced their targets.
• Despite the sell-off, Dycom reported stronger-than-expected quarterly results, including $5.29 EPS and $2.01 billion in revenue, while authorizing a $150 million share buyback and reporting insider purchases.

Shares of Dycom Industries, Inc. (NYSE:DY - Get Free Report) hit a new 52-week low during mid-day trading on Thursday. The stock traded as low as $265.09 and last traded at $269.5320, with a volume of 724847 shares trading hands. The stock had previously closed at $269.04.

Analysts Set New Price Targets

A number of analysts have weighed in on DY shares. KeyCorp upped their target price on Dycom Industries from $423.00 to $429.00 and gave the stock an "overweight" rating in a report on Monday, September 21st. Guggenheim reiterated a "buy" rating and issued a $620.00 price target on shares of Dycom Industries in a report on Thursday, September 17th. Weiss Ratings lowered Dycom Industries from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Friday, September 18th. UBS Group restated a "buy" rating on shares of Dycom Industries in a research note on Thursday, September 17th. Finally, JPMorgan Chase & Co. dropped their price objective on Dycom Industries from $650.00 to $570.00 and set an "overweight" rating on the stock in a research report on Thursday, August 27th. Ten equities research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. According to data from MarketBeat.com, Dycom Industries has a consensus rating of "Moderate Buy" and a consensus target price of $502.92.

Dycom Industries Price Performance

The company has a market cap of $8.13 billion, a PE ratio of 24.53, a PEG ratio of 0.46 and a beta of 1.49. The company has a debt-to-equity ratio of 1.35, a current ratio of 2.35 and a quick ratio of 2.24. The stock's 50-day moving average is $345.48 and its 200 day moving average is $394.75.

Dycom Industries (NYSE:DY - Get Free Report) last released its quarterly earnings results on Wednesday, August 26th. The construction company reported $5.29 earnings per share (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 analyst estimates of $1.98 billion. During the same period in the previous year, the company earned $3.33 earnings per share. The business's revenue for the quarter was up 45.6% on a year-over-year basis. Dycom Industries has set its Q3 2027 guidance at 4.330-4.790 EPS. On average, equities analysts anticipate that Dycom Industries, Inc. will post 15.94 earnings per share for the current fiscal year.

Dycom Industries declared that its Board of Directors has authorized a stock buyback program on Wednesday, August 26th that allows the company to buyback $150.00 million in outstanding shares. This buyback authorization allows the construction company to purchase up to 1.4% of its stock through open market purchases. Stock buyback programs are generally an indication that the company's board of directors believes its shares are undervalued.

Insider Activity

In other Dycom Industries news, Director Carmen M. Sabater purchased 350 shares of the stock in a transaction on Wednesday, September 23rd. The stock was acquired at an average price of $280.62 per share, with a total value of $98,217.00. Following the completion of the acquisition, the director owned 7,154 shares in the company, valued at $2,007,555.48. The trade was a 5.14% increase in their ownership of the stock. The acquisition was disclosed in a filing with the SEC, which can be accessed through this link. Also, Director David Fallon purchased 700 shares of the company's stock in a transaction dated Tuesday, September 1st. The shares were acquired at an average price of $286.92 per share, for a total transaction of $200,844.00. Following the purchase, 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 position. Additional details regarding this purchase are available in the official SEC disclosure. Corporate insiders own 1.22% of the company's stock.

Hedge Funds Weigh In On Dycom Industries

Several hedge funds and other institutional investors have recently modified their holdings of DY. Allworth Financial LP purchased a new stake in Dycom Industries during the 2nd quarter worth approximately $35,000. Nemes Rush Group LLC purchased a new position in shares of Dycom Industries in the fourth quarter worth $40,000. Clearstead Advisors LLC lifted its stake in shares of Dycom Industries by 212.8% during the fourth quarter. Clearstead Advisors LLC now owns 122 shares of the construction company's stock worth $41,000 after buying an additional 83 shares during the period. Hantz Financial Services Inc. lifted its stake in shares of Dycom Industries by 150.0% during the fourth quarter. Hantz Financial Services Inc. now owns 145 shares of the construction company's stock worth $49,000 after buying an additional 87 shares during the period. Finally, Legacy Wealth Managment LLC ID grew its holdings in shares of Dycom Industries by 30.4% during the first quarter. Legacy Wealth Managment LLC ID now owns 150 shares of the construction company's stock valued at $51,000 after buying an additional 35 shares during the last quarter. 98.33% of the stock is owned by hedge funds and other institutional investors.

Dycom Industries Company Profile

Dycom Industries, Inc is a provider of specialty contracting services for the telecommunications and utility industries. Through its operating subsidiaries, the company designs, builds, installs, maintains and repairs infrastructure used by telecommunications providers, utilities and government agencies.

Its services include engineering and project management, aerial and underground construction, fiber-optic and broadband network deployment, wireless infrastructure installation, network maintenance, fulfillment services and emergency restoration.

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