Dycom Industries (NYSE:DY) Sets New 52-Week Low - Here's Why

Key Points

• Dycom shares fell to a new 52-week low of $246.34 during Tuesday trading and last traded near $251.60, well below the 50-day and 200-day moving averages.
• Despite recent rating downgrades from some firms, analysts maintain a consensus “Moderate Buy” rating, with an average price target of $502.92.
• Fundamentals remained positive in the latest quarter: Dycom beat earnings and revenue estimates, reported 45.6% year-over-year revenue growth, and authorized a $150 million share buyback; two directors also purchased shares.

Dycom Industries, Inc. (NYSE:DY - Get Free Report)'s stock price hit a new 52-week low during mid-day trading on Tuesday. The company traded as low as $246.34 and last traded at $251.6040, with a volume of 26,251 shares trading hands. The stock had previously closed at $254.39.

Analyst Ratings Changes

DY has been the topic of a number of recent research reports. Raymond James Financial set a $375.00 target price on Dycom Industries in a research note on Thursday, September 3rd. Weiss Ratings lowered Dycom Industries from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Friday, September 18th. Zacks Research cut shares of Dycom Industries from a "strong-buy" rating to a "hold" rating in a research note on Monday, July 27th. UBS Group reiterated a "buy" rating on shares of Dycom Industries in a research note on Thursday, September 17th. Finally, Wall Street Zen raised shares of Dycom Industries from a "hold" rating to a "buy" rating in a research report on Saturday, October 10th. Ten analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $502.92.

Dycom Industries Stock Up 0.0%

The company has a current ratio of 2.35, a quick ratio of 2.24 and a debt-to-equity ratio of 1.35. The firm has a market cap of $7.67 billion, a P/E ratio of 23.30, a PEG ratio of 0.43 and a beta of 1.50. The company's 50 day simple moving average is $308.87 and its 200-day simple moving average is $387.68.

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 analysts' consensus estimates of $4.72 by $0.57. Dycom Industries had a net margin of 4.79% and a return on equity of 25.30%. The firm had revenue of $2.01 billion during the quarter, compared to analyst estimates of $1.98 billion. During the same period in the previous year, the business posted $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. Research analysts forecast that Dycom Industries, Inc. will post 16.06 earnings per share for the current fiscal year.

Dycom Industries declared that its Board of Directors has authorized a share buyback plan on Wednesday, August 26th that authorizes the company to buy back $150.00 million in outstanding shares. This buyback authorization authorizes the construction company to buy up to 1.4% of its shares through open market purchases. Stock buyback plans are typically a sign that the company's leadership believes its stock is undervalued.

Insider Activity at Dycom Industries

In related news, Director David Fallon bought 700 shares of the firm's stock in a transaction on Tuesday, September 1st. The stock was acquired at an average cost of $286.92 per share, for a total transaction of $200,844.00. Following the purchase, the director owned 1,043 shares in the company, valued at approximately $299,257.56. This represents a 204.08% increase in their ownership of the stock. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, Director Carmen M. Sabater bought 350 shares of the firm's stock in a transaction on Wednesday, September 23rd. The shares were bought at an average price of $280.62 per share, with a total value of $98,217.00. Following the completion of the purchase, the director 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 SEC filing for this purchase provides additional information. Company insiders own 1.22% of the company's stock.

Hedge Funds Weigh In On Dycom Industries

A number of institutional investors and hedge funds have recently modified their holdings of DY. Allworth Financial LP purchased a new stake in Dycom Industries during the second quarter valued at $35,000. Harbor Investment Advisory LLC purchased a new position in Dycom Industries in the second quarter worth about $52,000. Continuum Advisory LLC purchased a new position in Dycom Industries in the second quarter worth about $59,000. Legacy Wealth Managment LLC ID grew its stake in shares of Dycom Industries by 30.4% during the 1st quarter. Legacy Wealth Managment LLC ID now owns 150 shares of the construction company's stock valued at $51,000 after purchasing an additional 35 shares during the period. Finally, C M Bidwell & Associates Ltd. bought a new stake in shares of Dycom Industries during the 2nd quarter valued at about $82,000. 98.33% of the stock is currently owned by hedge funds and other institutional investors.

Dycom Industries Company Profile

Dycom Industries, Inc is a specialty contracting company that provides infrastructure services to telecommunications providers, utilities, cable and broadband companies, and government agencies. Headquartered in Palm Beach Gardens, Florida, the company operates primarily across the United States.

Its services include engineering, construction, installation, maintenance, and repair of telecommunications infrastructure. Dycom supports the deployment of fiber-optic networks, broadband systems, wireless networks, underground and aerial lines, and other communications facilities.

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