AECOM (NYSE:ACM) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a report issued on Wednesday.

According to Zacks, “AECOM’s fiscal fourth-quarter 2017 adjusted earnings beat the Zacks Consensus Estimate by 4.2% and were up 13.8% year over year. Increase in the proportion of higher margin work is benefiting AECOM’s Construction Services segment and Management Services segments. Also, the Shimmick buyout is supplementing core revenue growth. Going forward, the company remains optimistic that favorable political climate both in the United States and abroad will continue to create growth opportunities of the infrastructure and defense markets. Volatility in the oil and gas market, with declining prices and contracting spending levels, has been hurting the company’s projects and orders. Consequently, AECOM’s shares have underperformed the industry average on a year-to-date basis. Moreover, cyclical demand of the company’s services and currency fluctuations are likely to thwart growth, going forward.”

Other equities research analysts also recently issued reports about the stock. UBS AG reissued a “buy” rating and issued a $4.00 price target (down from $40.00) on shares of AECOM in a report on Tuesday. Citigroup Inc. reissued a “buy” rating and issued a $40.00 price target (down from $45.00) on shares of AECOM in a report on Tuesday, July 18th. KeyCorp reissued a “buy” rating on shares of AECOM in a report on Friday, September 22nd. Credit Suisse Group reissued a “hold” rating and issued a $37.00 price target on shares of AECOM in a report on Thursday, August 10th. Finally, Canaccord Genuity reissued a “hold” rating and issued a $36.00 price target on shares of AECOM in a report on Tuesday, August 8th. One analyst has rated the stock with a sell rating, six have issued a hold rating and five have given a buy rating to the stock. The stock has an average rating of “Hold” and an average price target of $31.70.

AECOM (NYSE ACM) opened at $34.21 on Wednesday. The company has a current ratio of 1.22, a quick ratio of 1.22 and a debt-to-equity ratio of 0.96. The firm has a market cap of $5,360.00, a PE ratio of 12.12, a price-to-earnings-growth ratio of 1.86 and a beta of 1.71. AECOM has a 1 year low of $30.15 and a 1 year high of $40.72.

AECOM (NYSE:ACM) last issued its earnings results on Monday, November 13th. The construction company reported $0.74 earnings per share for the quarter, topping analysts’ consensus estimates of $0.71 by $0.03. AECOM had a net margin of 1.86% and a return on equity of 12.51%. The firm had revenue of $4.86 billion during the quarter, compared to analyst estimates of $4.63 billion. During the same quarter last year, the business earned $0.65 earnings per share. The company’s quarterly revenue was up 12.3% on a year-over-year basis. sell-side analysts expect that AECOM will post 2.74 EPS for the current fiscal year.

AECOM announced that its Board of Directors has authorized a share repurchase plan on Thursday, September 21st that authorizes the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization authorizes the construction company to repurchase up to 18.3% of its shares through open market purchases. Shares repurchase plans are usually a sign that the company’s board of directors believes its stock is undervalued.

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In related news, CEO Michael S. Burke sold 30,000 shares of the firm’s stock in a transaction that occurred on Wednesday, September 27th. The shares were sold at an average price of $37.00, for a total value of $1,110,000.00. Following the sale, the chief executive officer now directly owns 154,362 shares of the company’s stock, valued at $5,711,394. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CEO Michael S. Burke sold 56,800 shares of the firm’s stock in a transaction that occurred on Thursday, October 5th. The shares were sold at an average price of $36.86, for a total transaction of $2,093,648.00. The disclosure for this sale can be found here. Company insiders own 1.14% of the company’s stock.

A number of institutional investors and hedge funds have recently made changes to their positions in ACM. Vanguard Group Inc. raised its stake in shares of AECOM by 1.3% during the second quarter. Vanguard Group Inc. now owns 13,443,021 shares of the construction company’s stock worth $434,613,000 after acquiring an additional 176,473 shares in the last quarter. Dimensional Fund Advisors LP raised its stake in shares of AECOM by 0.5% during the third quarter. Dimensional Fund Advisors LP now owns 4,742,824 shares of the construction company’s stock worth $174,587,000 after acquiring an additional 24,471 shares in the last quarter. State Street Corp raised its stake in shares of AECOM by 1.1% during the second quarter. State Street Corp now owns 3,977,619 shares of the construction company’s stock worth $128,599,000 after acquiring an additional 44,044 shares in the last quarter. Alliancebernstein L.P. raised its stake in shares of AECOM by 0.3% during the second quarter. Alliancebernstein L.P. now owns 2,816,118 shares of the construction company’s stock worth $91,045,000 after acquiring an additional 7,075 shares in the last quarter. Finally, Brandywine Global Investment Management LLC raised its stake in shares of AECOM by 8.9% during the second quarter. Brandywine Global Investment Management LLC now owns 1,902,787 shares of the construction company’s stock worth $61,518,000 after acquiring an additional 156,003 shares in the last quarter. 82.07% of the stock is currently owned by institutional investors and hedge funds.

AECOM Company Profile

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.

Analyst Recommendations for AECOM (NYSE:ACM)

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