Zacks Investment Research upgraded shares of Aecom (NYSE:ACM) from a strong sell rating to a hold rating in a research report sent to investors on Monday morning.
According to Zacks, “AECOM is well poised from the favorable political climate that will continue to unlock growth opportunities of the infrastructure and defense markets. Meanwhile, in order to improve profitability and de-risk its business profile, AECOM has initiated a $225-million General and Administrative (G&A) reduction plan. It has plans to exit more than 30 countries, in order to prioritize investments in markets with higher growth prospects and competitive advantages. However, shares of AECOM have advanced 6.1% in the past month, underperforming its industry. Estimates have remained unchanged for fiscal 2019 but declined for 2020 over the past 30 days. The company expects a large portion of expenses under the current plan to be incurred in the first half of 2019, which is a cause of concern.”
ACM has been the topic of several other research reports. Credit Suisse Group restated a hold rating and set a $30.00 price target on shares of Aecom in a report on Wednesday, December 12th. UBS Group set a $40.00 price objective on Aecom and gave the company a buy rating in a research report on Tuesday, November 13th. Barclays set a $30.00 price objective on Aecom and gave the stock a sell rating in a research note on Tuesday, November 13th. Citigroup reduced their target price on Aecom from $42.00 to $41.00 and set a buy rating on the stock in a research report on Tuesday, November 13th. Finally, Robert W. Baird reiterated a buy rating and issued a $36.00 price objective (down previously from $41.00) on shares of Aecom in a report on Monday, November 12th. One investment analyst has rated the stock with a sell rating, six have assigned a hold rating and three have assigned a buy rating to the company’s stock. Aecom presently has an average rating of Hold and a consensus price target of $36.75.
Aecom (NYSE:ACM) last announced its earnings results on Monday, November 12th. The construction company reported $0.83 earnings per share for the quarter, beating analysts’ consensus estimates of $0.82 by $0.01. Aecom had a net margin of 0.68% and a return on equity of 10.16%. The business had revenue of $5.31 billion for the quarter, compared to the consensus estimate of $5.27 billion. During the same period last year, the firm posted $0.74 earnings per share. Aecom’s quarterly revenue was up 9.3% on a year-over-year basis. Equities research analysts forecast that Aecom will post 2.72 earnings per share for the current year.
In other Aecom news, EVP Carla J. Christofferson sold 15,756 shares of the company’s stock in a transaction dated Tuesday, December 18th. The shares were sold at an average price of $27.62, for a total transaction of $435,180.72. Following the completion of the sale, the executive vice president now directly owns 18,203 shares in the company, valued at $502,766.86. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Corporate insiders own 0.74% of the company’s stock.
Several institutional investors and hedge funds have recently added to or reduced their stakes in ACM. Fox Run Management L.L.C. acquired a new stake in shares of Aecom during the fourth quarter worth $642,000. Greenhaven Associates Inc. boosted its holdings in Aecom by 0.5% in the 4th quarter. Greenhaven Associates Inc. now owns 1,644,689 shares of the construction company’s stock valued at $43,584,000 after purchasing an additional 8,600 shares during the period. Vanguard Group Inc raised its position in shares of Aecom by 1.5% in the 3rd quarter. Vanguard Group Inc now owns 14,139,854 shares of the construction company’s stock valued at $461,808,000 after buying an additional 204,643 shares in the last quarter. Clearbridge Investments LLC raised its position in shares of Aecom by 49,559.6% in the 3rd quarter. Clearbridge Investments LLC now owns 1,166,007 shares of the construction company’s stock valued at $38,082,000 after buying an additional 1,163,659 shares in the last quarter. Finally, Vanguard Group Inc. increased its position in Aecom by 1.5% during the 3rd quarter. Vanguard Group Inc. now owns 14,139,854 shares of the construction company’s stock worth $461,808,000 after purchasing an additional 204,643 shares in the last quarter. 87.78% of the stock is currently owned by institutional investors and hedge funds.
Aecom Company Profile
AECOM, together with its subsidiaries, engages in designing, building, financing, and operating infrastructure assets worldwide. It operates through four segments: Design and Consulting Services (DCS), Construction Services (CS), Management Services (MS), and AECOM Capital (ACAP). The DCS segment offers planning, consulting, architectural and engineering design, program management, and construction management services for industrial, commercial, institutional, and government clients, including the transportation, facilities, environmental, energy, and water markets.
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