Willdan Group (NASDAQ:WLDN) Reaches New 52-Week Low - Time to Sell?

Key Points

• Willdan shares hit a 52-week low, falling 6.5% to $65.95 after trading as low as $64.60, below the prior close of $70.85.
• Third-quarter revenue rose about 18% and adjusted EPS of $1.20 beat estimates of $1.08, but net income declined 13.6% year over year and GAAP diluted EPS fell 15.6%.
• The company was selected for a 10-year New York Power Authority energy-services program and will provide engineering for 643 MW of energy projects; analysts’ consensus rating is Buy, with a $118.33 price target.

Willdan Group, Inc. (NASDAQ:WLDN - Get Free Report)'s share price reached a new 52-week low on Friday. The stock traded as low as $64.60 and last traded at $65.95, with a volume of 52,662 shares changing hands. The stock had previously closed at $70.85.

Key Headlines Impacting Willdan Group

Here are the key news stories impacting Willdan Group this week:

• Positive Sentiment: Third-quarter contract revenue rose 17.9% to $214.5 million, net revenue increased 18.1% to $112.2 million, and adjusted EBITDA grew 22.4% to $28.3 million. Adjusted diluted EPS of $1.20 exceeded the $1.08 analyst estimate. Willdan Group Reports Third Quarter Results
• Positive Sentiment: Willdan was selected as one of 26 providers for the New York Power Authority’s Energy Services Program, with contracts running for ten years. Work will be assigned as projects arise, so the selection creates an opportunity but does not guarantee revenue. Willdan Selected To Be a NYPA Statewide Energy Services Provider
• Positive Sentiment: The company said it will provide engineering for energy-infrastructure projects totaling 643 megawatts, adding to its project opportunities. Willdan to Provide Engineering for 643 MW in Energy Infrastructure Projects
• Negative Sentiment: Despite revenue growth and the EPS beat, net income fell 13.6% and GAAP diluted EPS declined 15.6% year over year. Adjusted diluted EPS was also slightly lower than the $1.21 reported a year earlier, which may temper the positive headline beat. Willdan Group Reports Third Quarter Results

Analyst Ratings Changes

Several equities research analysts recently commented on WLDN shares. Wall Street Zen raised shares of Willdan Group from a "hold" rating to a "buy" rating in a research report on Saturday, August 15th. Zacks Research raised shares of Willdan Group from a "hold" rating to a "strong-buy" rating in a research note on Wednesday, October 7th. Weiss Ratings reiterated a "hold (c+)" rating on shares of Willdan Group in a report on Monday, October 19th. Wedbush reissued an "outperform" rating and issued a $130.00 price target on shares of Willdan Group in a research note on Wednesday, September 23rd. Finally, Yorkville Ives initiated coverage on Willdan Group in a research note on Monday, October 5th. They issued an "outperform" rating and a $100.00 price target on the stock. One analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating and one has given a Hold rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Buy" and a consensus target price of $118.33.

Willdan Group Stock Down 6.5%

The company has a market capitalization of $1.01 billion, a P/E ratio of 15.56 and a beta of 1.28. The firm's 50 day moving average price is $77.60 and its two-hundred day moving average price is $86.20. The company has a current ratio of 1.37, a quick ratio of 1.37 and a debt-to-equity ratio of 0.19.

Willdan Group (NASDAQ:WLDN - Get Free Report) last posted its quarterly earnings data on Thursday, November 5th. The construction company reported $1.20 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.08 by $0.12. The company had revenue of $214.53 million for the quarter, compared to the consensus estimate of $107.77 million. Willdan Group had a net margin of 8.80% and a return on equity of 24.51%. Equities research analysts forecast that Willdan Group, Inc. will post 4.06 EPS for the current year.

Insiders Place Their Bets

In other Willdan Group news, Director Thomas Brisbin sold 58,757 shares of the business's stock in a transaction dated Thursday, September 3rd. The shares were sold at an average price of $88.14, for a total transaction of $5,178,841.98. Following the sale, the director directly owned 96,687 shares of the company's stock, valued at $8,521,992.18. The trade was a 37.80% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through this link. Insiders have sold a total of 67,101 shares of company stock valued at $5,871,388 over the last ninety days. 5.60% of the stock is currently owned by company insiders.

Institutional Trading of Willdan Group

Hedge funds and other institutional investors have recently modified their holdings of the stock. Hsbc Holdings PLC boosted its stake in shares of Willdan Group by 1.6% during the 2nd quarter. Hsbc Holdings PLC now owns 13,173 shares of the construction company's stock worth $1,024,000 after acquiring an additional 208 shares during the period. Swiss National Bank increased its holdings in shares of Willdan Group by 1.0% during the 1st quarter. Swiss National Bank now owns 29,200 shares of the construction company's stock worth $2,236,000 after acquiring an additional 300 shares during the last quarter. International Assets Investment Management LLC raised its stake in Willdan Group by 67.0% in the 1st quarter. International Assets Investment Management LLC now owns 763 shares of the construction company's stock valued at $60,000 after acquiring an additional 306 shares during the period. Sterling Capital Management LLC raised its stake in Willdan Group by 254.9% in the 3rd quarter. Sterling Capital Management LLC now owns 433 shares of the construction company's stock valued at $32,000 after acquiring an additional 311 shares during the period. Finally, Integrated Wealth Concepts LLC bought a new stake in Willdan Group in the 2nd quarter valued at $29,000. Institutional investors and hedge funds own 72.29% of the company's stock.

Willdan Group Company Profile

Willdan Group, Inc NASDAQ: WLDN is a professional services company that provides technical, consulting and infrastructure solutions to utilities, government agencies and commercial clients. The company operates primarily in the United States, with a strong presence in California and other markets where energy, infrastructure and public-sector modernization services are in demand.

Through its energy-focused operations, Willdan designs and implements energy-efficiency, demand-response, electrification and distributed-energy programs.

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