Dycom Industries (NYSE:DY) Shares Climb 6.1% - Should You Buy?

Key Points

• Dycom shares rose 6.1% to about $291.28, although trading volume was 93% below the daily average.
• Analysts maintain a generally positive outlook, with a consensus “Moderate Buy” rating and a $502.92 price target; however, some firms recently lowered ratings or targets to “Hold.”
• Dycom reported quarterly EPS of $5.29 versus the $4.72 estimate, while revenue increased 45.6% year over year to $2.01 billion. The company also authorized a $150 million share-repurchase program, and two directors recently bought shares.

Dycom Industries, Inc. (NYSE:DY - Get Free Report)'s stock price shot up 6.1% during trading on Tuesday. The company traded as high as $284.43 and last traded at $291.2760. Approximately 34,763 shares traded hands during mid-day trading, a decline of 93% from the average daily volume of 510,853 shares. The stock had previously closed at $274.41.

Analysts Set New Price Targets

Several equities analysts have issued reports on DY shares. JPMorgan Chase & Co. dropped their target price 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. KeyCorp raised their price target on Dycom Industries from $423.00 to $429.00 and gave the company an "overweight" rating in a report on Monday, September 21st. Weiss Ratings downgraded Dycom Industries from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Friday, September 18th. Raymond James Financial set a $375.00 price objective on Dycom Industries in a report on Thursday, September 3rd. Finally, Wall Street Zen cut Dycom Industries from a "buy" rating to a "hold" rating in a research report on Saturday, September 19th. Ten analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $502.92.

Dycom Industries Price Performance

The firm has a market cap of $8.84 billion, a PE ratio of 26.68, a price-to-earnings-growth ratio of 0.46 and a beta of 1.50. 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 company has a 50 day moving average price of $335.99 and a 200 day moving average price of $393.01.

Dycom Industries (NYSE:DY - Get Free Report) last released its quarterly earnings data on Wednesday, August 26th. The construction company reported $5.29 earnings per share for the quarter, beating the consensus estimate of $4.72 by $0.57. The firm had revenue of $2.01 billion during the quarter, compared to the consensus estimate of $1.98 billion. Dycom Industries had a return on equity of 25.30% and a net margin of 4.79%.Dycom Industries's quarterly revenue was up 45.6% on a year-over-year basis. During the same period last year, the business posted $3.33 EPS. Dycom Industries has set its Q3 2027 guidance at 4.330-4.790 EPS. On average, sell-side analysts expect that Dycom Industries, Inc. will post 16.06 EPS for the current year.

Dycom Industries declared that its Board of Directors has authorized a share repurchase plan on Wednesday, August 26th that permits the company to repurchase $150.00 million in shares. This repurchase authorization permits the construction company to reacquire up to 1.4% of its stock through open market purchases. Stock repurchase plans are usually an indication that the company's leadership believes its stock is undervalued.

Insider Buying and Selling at Dycom Industries

In other Dycom Industries news, Director David Fallon bought 700 shares of the company's stock in a transaction on Tuesday, September 1st. The stock was purchased at an average cost of $286.92 per share, for a total transaction of $200,844.00. Following the acquisition, the director owned 1,043 shares of the company's stock, valued at $299,257.56. The trade was a 204.08% increase in their position. The acquisition was disclosed in a document filed with the SEC, which is available through the SEC website. Also, Director Carmen M. Sabater bought 350 shares of the company's stock in a transaction on Wednesday, September 23rd. The shares were 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 directly owned 7,154 shares in the company, valued at $2,007,555.48. This represents a 5.14% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Insiders own 1.22% of the company's stock.

Institutional Trading of Dycom Industries

Several institutional investors and hedge funds have recently modified their holdings of the business. Allworth Financial LP acquired a new position in shares of Dycom Industries during the 2nd quarter worth approximately $35,000. Harbor Investment Advisory LLC acquired a new stake in Dycom Industries during the 2nd quarter valued at $52,000. Continuum Advisory LLC acquired a new stake in Dycom Industries during the 2nd quarter valued at $59,000. Nemes Rush Group LLC purchased a new position in Dycom Industries during the fourth quarter worth $40,000. Finally, Legacy Wealth Managment LLC ID increased its position in Dycom Industries by 30.4% during the first quarter. Legacy Wealth Managment LLC ID now owns 150 shares of the construction company's stock worth $51,000 after buying an additional 35 shares in the last quarter. Hedge funds and other institutional investors own 98.33% of the company's stock.

About Dycom Industries

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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