Dycom Industries Stock Receives Multiple Upgrades from Analysts

Dycom Industries (NYSE:DY) has been reaffirmed with a “Buy (B)” rating by analysts at Weiss Ratings, according to a report released on Friday. This endorsement reflects a positive outlook on the company’s stock, which has garnered attention from several other research firms in recent weeks.

Analysts from Wells Fargo & Company raised their price target for Dycom Industries from $295.00 to $305.00, maintaining an “overweight” rating. This adjustment was noted in a research note dated September 26, 2023. Similarly, UBS Group increased their target price from $296.00 to $336.00, assigning a “buy” rating in a report on October 13, 2023. Such adjustments underscore a growing confidence in Dycom’s financial trajectory.

Adding to this momentum, Zacks Research upgraded Dycom Industries from a “hold” rating to a “strong-buy” rating on October 15, 2023. Bank of America also boosted their price target from $299.00 to $310.00, maintaining a “buy” rating as of September 29, 2023. In a similar vein, Raymond James Financial raised their price objective from $290.00 to $300.00, issuing a “strong-buy” rating on August 21, 2023. Currently, two analysts have rated the stock as a Strong Buy, while eight have given it a Buy rating. Data from MarketBeat indicates that the stock holds an average rating of “Buy” with a consensus price target of $301.38.

Dycom’s Recent Performance and Financials

On Friday, Dycom Industries opened trading at $291.24. Over the past year, the stock has shown considerable volatility, with a 52-week low of $131.37 and a high of $301.88. The company’s financial ratios reflect a solid position, with a debt-to-equity ratio of 0.74, a quick ratio of 2.96, and a current ratio of 3.16. The stock’s fifty-day moving average stands at $273.08, while the 200-day moving average is $239.69. With a market capitalization of $8.43 billion, Dycom has a price-to-earnings (P/E) ratio of 32.72 and a price-to-earnings-growth (PEG) ratio of 1.37, alongside a beta of 1.15.

The company recently reported its earnings results on August 20, 2023, revealing an earnings per share (EPS) of $3.33, which exceeded the consensus estimate of $2.92 by $0.41. Revenue for the quarter totaled $1.38 billion, slightly below the expected $1.41 billion. Year-over-year, Dycom’s quarterly revenue increased by 14.5%, compared to $2.46 EPS from the same quarter last year. The firm has set a fiscal year 2026 guidance of $3.030-3.360 EPS for Q3 2026. Analysts anticipate Dycom will post an average of $7.13 EPS for the current fiscal year.

Institutional Investor Activity

Recent trading activity indicates robust interest from institutional investors in Dycom Industries. Twin Peaks Wealth Advisors LLC acquired a new position during the second quarter, valued at approximately $32,000. Similarly, AlphaQuest LLC entered the market in the first quarter with a stake worth around $37,000. Salomon & Ludwin LLC also invested in the company during the third quarter, contributing another $37,000 to Dycom’s growing institutional investor base.

Furthermore, EverSource Wealth Advisors LLC increased its stake in Dycom Industries by 73.1% in the second quarter, now owning 161 shares valued at $39,000. Caldwell Trust Co also made a new investment in the second quarter, estimated at $61,000. In total, institutional investors hold 98.33% of Dycom’s stock, reflecting strong confidence in its future prospects.

Dycom Industries, based in the United States, specializes in providing contracting services within the telecommunications and utility sectors. The company offers a range of engineering services to telecommunications providers, encompassing the planning and design of various types of cable systems and wireless networks, as well as project management and inspection services.