AECOM (NYSE:ACM) Sees Large Volume Increase – Still a Buy?

AECOM (NYSE:ACM) saw strong trading volume on Friday . 521,515 shares were traded during trading, a decline of 35% from the previous session’s volume of 802,075 shares.The stock last traded at $107.71 and had previously closed at $107.04.

Wall Street Analysts Forecast Growth

Several research firms have recently commented on ACM. Citigroup upped their price objective on AECOM from $110.00 to $128.00 and gave the stock a “buy” rating in a research note on Tuesday, October 22nd. Truist Financial upped their price target on AECOM from $119.00 to $129.00 and gave the stock a “buy” rating in a research report on Friday, November 22nd. KeyCorp lifted their price objective on AECOM from $115.00 to $122.00 and gave the company an “overweight” rating in a research report on Thursday, November 7th. Robert W. Baird increased their target price on shares of AECOM from $113.00 to $122.00 and gave the stock an “outperform” rating in a report on Tuesday, November 19th. Finally, StockNews.com upgraded shares of AECOM from a “hold” rating to a “buy” rating in a research note on Sunday, October 27th. Nine analysts have rated the stock with a buy rating, Based on data from MarketBeat, the company currently has an average rating of “Buy” and an average price target of $119.38.

AECOM Price Performance

The company has a quick ratio of 1.13, a current ratio of 1.13 and a debt-to-equity ratio of 1.03. The firm’s fifty day moving average price is $110.45 and its 200 day moving average price is $99.57. The stock has a market cap of $14.30 billion, a PE ratio of 36.48, a P/E/G ratio of 1.92 and a beta of 1.17.

AECOM (NYSE:ACM) last announced its quarterly earnings results on Monday, November 18th. The construction company reported $1.27 EPS for the quarter, topping the consensus estimate of $1.24 by $0.03. The business had revenue of $1.81 billion for the quarter, compared to analysts’ expectations of $1.86 billion. AECOM had a net margin of 2.50% and a return on equity of 25.46%. The business’s quarterly revenue was up 4.9% compared to the same quarter last year. During the same quarter in the previous year, the company earned $1.01 EPS. As a group, equities analysts expect that AECOM will post 5.1 EPS for the current fiscal year.

AECOM Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, January 17th. Stockholders of record on Thursday, January 2nd will be given a dividend of $0.26 per share. This is an increase from AECOM’s previous quarterly dividend of $0.22. This represents a $1.04 dividend on an annualized basis and a dividend yield of 0.96%. The ex-dividend date of this dividend is Thursday, January 2nd. AECOM’s dividend payout ratio is currently 35.14%.

AECOM declared that its Board of Directors has approved a share buyback plan on Monday, November 18th that allows the company to repurchase $1.00 billion in shares. This repurchase authorization allows the construction company to buy up to 6.8% of its shares through open market purchases. Shares repurchase plans are generally an indication that the company’s management believes its shares are undervalued.

Insider Activity

In other news, CFO Gaurav Kapoor sold 42,400 shares of the firm’s stock in a transaction dated Wednesday, November 6th. The shares were sold at an average price of $115.34, for a total value of $4,890,416.00. Following the completion of the sale, the chief financial officer now owns 31,228 shares in the company, valued at approximately $3,601,837.52. This trade represents a 57.59 % decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Corporate insiders own 0.42% of the company’s stock.

Hedge Funds Weigh In On AECOM

Several hedge funds have recently added to or reduced their stakes in the company. Mackenzie Financial Corp boosted its position in shares of AECOM by 12.5% during the second quarter. Mackenzie Financial Corp now owns 10,621 shares of the construction company’s stock valued at $936,000 after buying an additional 1,180 shares during the period. Sumitomo Mitsui Trust Group Inc. boosted its holdings in AECOM by 5.0% during the 3rd quarter. Sumitomo Mitsui Trust Group Inc. now owns 258,680 shares of the construction company’s stock valued at $26,714,000 after acquiring an additional 12,224 shares during the period. BRITISH COLUMBIA INVESTMENT MANAGEMENT Corp boosted its holdings in AECOM by 60.5% during the 2nd quarter. BRITISH COLUMBIA INVESTMENT MANAGEMENT Corp now owns 26,051 shares of the construction company’s stock valued at $2,296,000 after acquiring an additional 9,815 shares during the period. B. Metzler seel. Sohn & Co. Holding AG bought a new position in AECOM in the 3rd quarter valued at $495,000. Finally, Barrow Hanley Mewhinney & Strauss LLC increased its stake in AECOM by 5.5% in the second quarter. Barrow Hanley Mewhinney & Strauss LLC now owns 2,339,185 shares of the construction company’s stock worth $206,176,000 after purchasing an additional 122,015 shares during the period. 85.41% of the stock is currently owned by institutional investors.

About AECOM

AECOM, together with its subsidiaries, provides professional infrastructure consulting services worldwide. It operates in three segments: Americas, International, and AECOM Capital. The company offers planning, consulting, architectural and engineering design, construction and program management, and investment and development services to public and private clients.