AECOM (NYSE:ACM) was downgraded by Zacks Investment Research from a “hold” rating to a “strong sell” rating in a report released on Friday.
According to Zacks, “AECOM’s third-quarter fiscal 2017 adjusted earnings per share came in at 76 cents, in line with the Zacks Consensus Estimate but down 3.7% from the year-ago figure of 81 cents. Year to date, AECOM’s shares have recorded a negative return, steeper than the industry’s average. Volatility in the oil and gas market, with declining prices and contracting spending levels, has been restraining the company’s projects and orders. Moreover, cyclical demand of the company’s services and currency fluctuations are likely to thwart growth, going forward. Also, the Budget Control Act is expected to delay few major projects, thus adding to the company’s woes. However, on the positive side, increase in the proportion of higher margin work is benefitting AECOM’s Construction Services segment and Revenue in Management Services segments. Also, the Shimmick buyout is expected to supplement core revenue growth.”
Other equities research analysts have also recently issued research reports about the stock. Citigroup Inc. reiterated a “buy” rating and issued a $40.00 target price (down previously from $45.00) on shares of AECOM in a research note on Tuesday, July 18th. Credit Suisse Group reissued a “buy” rating and issued a $44.00 price target on shares of AECOM in a research report on Thursday, June 29th. UBS AG set a $38.00 price target on shares of AECOM and gave the stock a “buy” rating in a research report on Monday, June 26th. Argus dropped their price target on shares of AECOM from $43.00 to $33.00 and set a “buy” rating for the company in a research report on Friday, June 2nd. Finally, Deutsche Bank AG reissued a “hold” rating and issued a $38.00 price target (down previously from $41.00) on shares of AECOM in a research report on Saturday, April 22nd. Two research analysts have rated the stock with a sell rating, five have given a hold rating and four have assigned a buy rating to the stock. The stock currently has an average rating of “Hold” and an average price target of $35.10.
Shares of AECOM (NYSE:ACM) traded up 1.22% during mid-day trading on Friday, reaching $32.35. The company had a trading volume of 126,900 shares. The company has a market capitalization of $5.04 billion, a PE ratio of 19.81 and a beta of 1.75. AECOM has a 52-week low of $26.46 and a 52-week high of $40.72. The company’s 50-day moving average price is $32.24 and its 200-day moving average price is $34.18.
AECOM (NYSE:ACM) last released its earnings results on Tuesday, August 8th. The construction company reported $0.78 earnings per share for the quarter, meeting the Thomson Reuters’ consensus estimate of $0.78. AECOM had a net margin of 1.46% and a return on equity of 12.44%. The business had revenue of $4.56 billion during the quarter, compared to analysts’ expectations of $4.54 billion. During the same quarter last year, the company earned $0.81 earnings per share. The firm’s revenue was up 3.5% on a year-over-year basis. On average, analysts forecast that AECOM will post $2.92 earnings per share for the current fiscal year.
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Several hedge funds have recently bought and sold shares of the company. Macquarie Group Ltd. raised its stake in AECOM by 2.0% in the fourth quarter. Macquarie Group Ltd. now owns 225,034 shares of the construction company’s stock valued at $8,182,000 after buying an additional 4,350 shares during the last quarter. Bank of Montreal Can raised its stake in AECOM by 12.2% in the first quarter. Bank of Montreal Can now owns 30,036 shares of the construction company’s stock valued at $1,069,000 after buying an additional 3,255 shares during the last quarter. Fox Run Management L.L.C. raised its stake in AECOM by 54.7% in the first quarter. Fox Run Management L.L.C. now owns 22,900 shares of the construction company’s stock valued at $815,000 after buying an additional 8,100 shares during the last quarter. Louisiana State Employees Retirement System raised its stake in AECOM by 2.9% in the first quarter. Louisiana State Employees Retirement System now owns 39,200 shares of the construction company’s stock valued at $1,395,000 after buying an additional 1,100 shares during the last quarter. Finally, First United Bank Trust purchased a new stake in AECOM during the first quarter valued at $239,000. 82.80% of the stock is owned by institutional investors.
AECOM is engaged in designing, building, financing and operating infrastructure assets for governments, businesses and organizations. The Company’s segments include design and consulting services (DCS), construction services (CS) and management services (MS). Its DCS segment is engaged in planning, consulting, architectural and engineering design services to commercial and government clients in major end markets, such as transportation, facilities, environmental, energy, water and government.
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