Dycom Industries (NYSE:DY) Upgraded by Zacks Investment Research to Hold

Zacks Investment Research upgraded shares of Dycom Industries (NYSE:DY) from a sell rating to a hold rating in a research note issued to investors on Monday, August 6th.

According to Zacks, “Going forward, favorable industry trends like surging demand for 1-gigabit deployment, huge investment in wireline networks and cable capacity bodes well for Dycom. Also, the company’s earnings estimates have moved north in the past 30 days. However, over the past six months, the company’s shares have significantly underperformed the industry average. Initiations of large-scale network deployments, particularly those occurring during periods of customer M&A activity, remain vulnerable to timing uncertainty. Also, the company’s margins will likely suffer due to timing volatility, customer spending modulations and under absorption of labor and field costs. Moreover, the company slashed guidance for fiscal 2019. This apart, stiff competition as well as the dynamic nature of the U.S. telecommunications industry poses as headwinds for the company.”

Several other equities research analysts have also issued reports on the stock. B. Riley decreased their price target on shares of Dycom Industries from $137.00 to $120.00 and set a buy rating for the company in a research note on Wednesday, May 23rd. Craig Hallum decreased their price target on shares of Dycom Industries from $129.00 to $100.00 and set a buy rating for the company in a research note on Wednesday, May 23rd. Stifel Nicolaus cut their price objective on shares of Dycom Industries from $126.00 to $117.00 and set a buy rating for the company in a report on Wednesday, May 23rd. KeyCorp cut their price objective on shares of Dycom Industries from $123.00 to $112.00 and set an overweight rating for the company in a report on Wednesday, May 23rd. Finally, ValuEngine downgraded shares of Dycom Industries from a hold rating to a sell rating in a report on Tuesday, May 22nd. One equities research analyst has rated the stock with a sell rating, four have assigned a hold rating and six have issued a buy rating to the stock. The company has a consensus rating of Hold and a consensus price target of $100.50.

NYSE:DY traded up $0.17 on Monday, hitting $83.91. The stock had a trading volume of 528,800 shares, compared to its average volume of 561,825. The company has a debt-to-equity ratio of 0.98, a quick ratio of 3.09 and a current ratio of 3.39. The firm has a market cap of $2.42 billion, a price-to-earnings ratio of 24.01, a price-to-earnings-growth ratio of 2.22 and a beta of 1.29. Dycom Industries has a 1 year low of $67.15 and a 1 year high of $123.99.

Dycom Industries (NYSE:DY) last issued its quarterly earnings results on Wednesday, August 29th. The construction company reported $1.05 earnings per share (EPS) for the quarter, hitting the Thomson Reuters’ consensus estimate of $1.05. Dycom Industries had a net margin of 4.44% and a return on equity of 14.59%. The company had revenue of $799.50 million during the quarter, compared to analyst estimates of $799.51 million. During the same quarter last year, the business posted $1.47 EPS. Dycom Industries’s quarterly revenue was up 2.5% compared to the same quarter last year. sell-side analysts forecast that Dycom Industries will post 2.82 earnings per share for the current year.

Dycom Industries announced that its board has authorized a stock buyback plan on Wednesday, August 29th that authorizes the company to buyback $150.00 million in outstanding shares. This buyback authorization authorizes the construction company to buy up to 6.3% of its stock through open market purchases. Stock buyback plans are generally an indication that the company’s board believes its stock is undervalued.

Several institutional investors have recently bought and sold shares of DY. Millennium Management LLC purchased a new stake in shares of Dycom Industries during the 4th quarter valued at $798,000. LPL Financial LLC raised its position in shares of Dycom Industries by 83.5% during the 4th quarter. LPL Financial LLC now owns 9,524 shares of the construction company’s stock valued at $1,061,000 after buying an additional 4,335 shares in the last quarter. Xact Kapitalforvaltning AB purchased a new stake in shares of Dycom Industries during the 4th quarter valued at $318,000. Global X Management Co. LLC raised its position in shares of Dycom Industries by 190.2% during the 1st quarter. Global X Management Co. LLC now owns 6,352 shares of the construction company’s stock valued at $684,000 after buying an additional 4,163 shares in the last quarter. Finally, Atria Investments LLC raised its position in Dycom Industries by 24.0% in the 1st quarter. Atria Investments LLC now owns 5,876 shares of the construction company’s stock worth $632,000 after purchasing an additional 1,136 shares during the period.

About Dycom Industries

Dycom Industries, Inc provides specialty contracting services in the United States and Canada. The company offers various specialty contracting services, including program management, engineering, construction, maintenance, and installation services, such as placement and splicing of fiber, copper, and coaxial cables to telecommunications providers.

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