KBR, Inc. (KBR) Downgraded to Sell at Zacks Investment Research
KBR, Inc. (NYSE:KBR) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research report issued to clients and investors on Wednesday.
According to Zacks, “Over the past one year, KBR’s shares have underperformed the industry’s average gain significantly. Prolonged softness in the Engineering & Construction sector, coupled with volatility in oil and gas prices, may pose a threat to KBR's growth. Sluggish activities in several projects approaching completion add to the company’s concerns. Moreover, long-cycle nature of the contracts, volatility in material and equipment pricing and stiff competition pose as major concerns. Also, the company continues to incur high general and administrative expenses which are about $4-$5 million above the normative level. However, on the flip side, the company’s Government Services business is experiencing stellar growth and the company remains confident that recent acquisitions will continue to accelerate growth momentum of this business.”
KBR has been the topic of a number of other research reports. BidaskClub lowered shares of KBR from a “hold” rating to a “sell” rating in a research note on Friday, July 28th. KeyCorp set a $20.00 price target on shares of KBR and gave the stock a “buy” rating in a research note on Friday, August 25th. Finally, TheStreet upgraded shares of KBR from a “d+” rating to a “c-” rating in a report on Thursday, August 3rd. Three investment analysts have rated the stock with a sell rating, two have given a hold rating and seven have issued a buy rating to the company’s stock. KBR has an average rating of “Hold” and an average price target of $18.40.
Shares of KBR (KBR) traded down 0.94% during midday trading on Wednesday, hitting $17.89. 462,164 shares of the company’s stock were exchanged. The stock’s market cap is $2.50 billion. The stock’s 50 day moving average is $16.77 and its 200-day moving average is $15.44. KBR has a 1-year low of $13.17 and a 1-year high of $18.28.
KBR (NYSE:KBR) last issued its earnings results on Wednesday, August 2nd. The construction company reported $0.54 earnings per share for the quarter, topping the Thomson Reuters’ consensus estimate of $0.49 by $0.05. KBR had a positive return on equity of 8.74% and a negative net margin of 0.81%. The company had revenue of $1.09 billion during the quarter, compared to the consensus estimate of $1.10 billion. During the same quarter in the prior year, the business earned $0.35 earnings per share. The company’s revenue was up 8.4% compared to the same quarter last year. Analysts predict that KBR will post $1.43 earnings per share for the current fiscal year.
Several large investors have recently modified their holdings of KBR. NGAM Advisors L.P. lifted its position in shares of KBR by 1.0% in the 2nd quarter. NGAM Advisors L.P. now owns 19,629 shares of the construction company’s stock worth $299,000 after buying an additional 201 shares during the last quarter. Ngam Advisors L.P. boosted its holdings in shares of KBR by 1.6% in the 1st quarter. Ngam Advisors L.P. now owns 19,428 shares of the construction company’s stock valued at $292,000 after buying an additional 309 shares during the period. Teacher Retirement System of Texas boosted its holdings in shares of KBR by 3.4% in the 2nd quarter. Teacher Retirement System of Texas now owns 11,603 shares of the construction company’s stock valued at $177,000 after buying an additional 381 shares during the period. Advantus Capital Management Inc boosted its holdings in shares of KBR by 3.2% in the 1st quarter. Advantus Capital Management Inc now owns 18,293 shares of the construction company’s stock valued at $275,000 after buying an additional 562 shares during the period. Finally, Amalgamated Bank grew its position in shares of KBR by 3.0% during the 1st quarter. Amalgamated Bank now owns 22,608 shares of the construction company’s stock valued at $340,000 after buying an additional 663 shares during the last quarter. 99.74% of the stock is currently owned by institutional investors.
KBR Company Profile
KBR, Inc is a provider of professional services and technologies across the asset and program life-cycle within the government services and hydrocarbons industries. The Company operates through business segments, including Technology & Consulting (T&C), Engineering & Construction (E&C), Government Services (GS), Non-strategic Business and Other.
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