AECOM (NYSE:ACM) Sees Strong Trading Volume – What’s Next?

AECOM (NYSE:ACM) shares saw unusually-strong trading volume on Wednesday . Approximately 267,526 shares traded hands during trading, a decline of 47% from the previous session’s volume of 509,290 shares.The stock last traded at $106.26 and had previously closed at $107.14.

Analyst Ratings Changes

ACM has been the subject of several recent research reports. StockNews.com upgraded shares of AECOM from a “hold” rating to a “buy” rating in a research report on Sunday, October 27th. The Goldman Sachs Group initiated coverage on AECOM in a report on Friday, November 22nd. They issued a “buy” rating and a $130.00 price objective for the company. Robert W. Baird raised their target price on AECOM from $113.00 to $122.00 and gave the stock an “outperform” rating in a research report on Tuesday, November 19th. KeyCorp upped their price target on AECOM from $115.00 to $122.00 and gave the company an “overweight” rating in a research report on Thursday, November 7th. Finally, Citigroup raised their price objective on AECOM from $110.00 to $128.00 and gave the stock a “buy” rating in a research report on Tuesday, October 22nd. Nine research analysts have rated the stock with a buy rating, According to data from MarketBeat.com, the company has an average rating of “Buy” and a consensus price target of $119.38.

AECOM Price Performance

The business has a 50 day moving average price of $110.69 and a 200-day moving average price of $101.36. The company has a market capitalization of $14.14 billion, a price-to-earnings ratio of 36.06, a P/E/G ratio of 1.92 and a beta of 1.19. The company has a debt-to-equity ratio of 1.03, a quick ratio of 1.13 and a current ratio of 1.13.

AECOM (NYSE:ACM) last released its quarterly earnings data on Monday, November 18th. The construction company reported $1.27 earnings per share for the quarter, beating the consensus estimate of $1.24 by $0.03. The company had revenue of $1.81 billion during the quarter, compared to analyst estimates of $1.86 billion. AECOM had a net margin of 2.50% and a return on equity of 25.46%. AECOM’s revenue for the quarter was up 4.9% compared to the same quarter last year. During the same quarter in the previous year, the business posted $1.01 EPS. Research analysts predict 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. Investors of record on Thursday, January 2nd will be given a $0.26 dividend. This represents a $1.04 dividend on an annualized basis and a yield of 0.97%. This is a positive change from AECOM’s previous quarterly dividend of $0.22. The ex-dividend date is Thursday, January 2nd. AECOM’s payout ratio is presently 35.14%.

AECOM announced that its Board of Directors has approved a share buyback plan on Monday, November 18th that permits the company to repurchase $1.00 billion in shares. This repurchase authorization permits the construction company to buy up to 6.8% of its shares through open market purchases. Shares repurchase plans are typically a sign that the company’s board believes its stock is undervalued.

Insider Activity

In other news, CFO Gaurav Kapoor sold 42,400 shares of the business’s stock in a transaction dated Wednesday, November 6th. The shares were sold at an average price of $115.34, for a total transaction of $4,890,416.00. Following the completion of the sale, the chief financial officer now directly owns 31,228 shares of the company’s stock, valued at $3,601,837.52. The trade was a 57.59 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Corporate insiders own 0.42% of the company’s stock.

Hedge Funds Weigh In On AECOM

A number of hedge funds have recently added to or reduced their stakes in the stock. Private Trust Co. NA purchased a new position in shares of AECOM during the third quarter valued at approximately $30,000. True Wealth Design LLC boosted its holdings in AECOM by 4,242.9% during the 3rd quarter. True Wealth Design LLC now owns 304 shares of the construction company’s stock worth $31,000 after acquiring an additional 297 shares during the last quarter. UMB Bank n.a. raised its holdings in shares of AECOM by 196.2% in the third quarter. UMB Bank n.a. now owns 388 shares of the construction company’s stock valued at $40,000 after purchasing an additional 257 shares during the last quarter. Kathleen S. Wright Associates Inc. bought a new position in shares of AECOM during the third quarter valued at about $50,000. Finally, Mirae Asset Global Investments Co. Ltd. purchased a new position in AECOM during the third quarter worth about $59,000. Institutional investors and hedge funds own 85.41% of the company’s stock.

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.