Campbell & CO Investment Adviser LLC has significantly increased its stake in EMCOR Group, Inc. (NYSE: EME), raising its holdings by a remarkable 551.7% during the third quarter of 2023. According to a recent filing with the Securities and Exchange Commission (SEC), the institutional investor now owns 4,438 shares of the construction company after acquiring an additional 3,757 shares during the quarter. As of the latest report, Campbell & CO’s investment in EMCOR Group is valued at approximately $2.883 million.
Other institutional investors have also made moves in EMCOR Group recently. Quent Capital LLC entered a new position valued at around $29,000 in the third quarter, while Tobam boosted its stake by an astounding 1,900% in the second quarter, now owning 80 shares worth $43,000. Additionally, Twin Peaks Wealth Advisors LLC and Hazlett Burt & Watson Inc. each acquired new stakes in the company, valued at $43,000 and $59,000 respectively. Institutional investors collectively own 92.59% of EMCOR Group’s stock.
In related developments, Director Robin A. Walker-Lee sold 1,325 shares of EMCOR on November 3, 2023, at an average price of $677.22, totaling $897,316.50. This sale reduced Walker-Lee’s holdings to 6,140 shares, valued at approximately $4.158 million, reflecting a 17.75% decrease in her position. This transaction was also disclosed in a filing with the SEC.
Analyst Ratings and Stock Performance
Recent analysis of EMCOR Group shares has produced a mix of ratings from various equity analysts. Stifel Nicolaus has increased its price target from $692.00 to $718.00, assigning a “buy” rating. Robert W. Baird set a target price of $713.00, while DA Davidson raised its target from $725.00 to $800.00 with a “buy” recommendation. On the other hand, Zacks Research downgraded EMCOR from a “strong buy” to a “hold” rating. Overall, the consensus rating for EMCOR Group remains a “Moderate Buy,” with a consensus target price of $692.83 according to MarketBeat.com.
As of November 3, 2023, EMCOR Group’s stock opened at $681.92 and has a market capitalization of $30.53 billion, with a price-to-earnings ratio of 27.42 and a beta of 1.17. The stock has fluctuated between a one-year low of $320.89 and a high of $778.64, with its fifty-day moving average at $626.09.
EMCOR Group reported its quarterly earnings on October 30, 2023, announcing an earnings per share (EPS) of $6.57, meeting consensus estimates. The company achieved a net margin of 6.96% and a return on equity of 37.04%. Revenue for the quarter reached $4.30 billion, surpassing analyst expectations of $4.27 billion. Year-over-year, the revenue grew by 16.4% compared to the same quarter last year.
Share Buyback and Dividend Announcement
In a strategic move, EMCOR Group’s Board of Directors has initiated a share buyback program valued at $500 million, allowing the company to repurchase up to 1.9% of its stock through open market purchases. Such buyback programs often signal that the company’s leadership believes its stock is undervalued.
Additionally, EMCOR Group has declared a quarterly dividend of $0.40 per share, set to be paid on January 30, 2024, to shareholders of record by January 14, 2024. This marks an increase from the previous quarterly dividend of $0.25, translating to an annualized dividend of $1.60 and a yield of 0.2%. The company’s current dividend payout ratio stands at 6.43%.
EMCOR Group, Inc. specializes in mechanical and electrical construction, industrial and energy infrastructure, and facilities services, serving a diverse clientele including commercial, institutional, and industrial sectors. The company offers a wide range of services, including design-build construction, ongoing facilities maintenance, and specialized industrial services across various sectors such as manufacturing and healthcare.
