Campbell & CO Investment Adviser LLC significantly increased its investment in EMCOR Group, Inc. (NYSE: EME) by a remarkable 551.7% during the third quarter of 2023. This move, disclosed in a filing with the Securities and Exchange Commission (SEC), saw the institutional investor acquire an additional 3,757 shares, bringing its total holdings to 4,438 shares. The value of these holdings now stands at approximately $2.88 million.
Several other institutional investors have also recently adjusted their positions in EMCOR Group. For instance, Quent Capital LLC opened a new position estimated at around $29,000 during the same quarter. Additionally, Tobam expanded its stake by a staggering 1,900% in the second quarter, increasing its share count to 80 shares valued at $43,000. Other notable investors include Twin Peaks Wealth Advisors LLC and Hazlett Burt & Watson Inc., both of which made similar strategic acquisitions.
As of now, institutional investors and hedge funds collectively own 92.59% of EMCOR Group’s stock.
Insider Transactions and Analyst Insights
In a related transaction, Director Robin A. Walker-Lee sold 1,325 shares of EMCOR on November 3, 2023, at an average price of $677.22, amounting to a total transaction value of $897,316.50. Following the sale, Walker-Lee holds 6,140 shares valued at approximately $4.16 million, reflecting a 17.75% reduction in their position.
Analysts have also weighed in on EMCOR Group, offering varied perspectives on the stock’s future. Stifel Nicolaus raised its price target from $692.00 to $718.00, maintaining a “buy” rating. Robert W. Baird set a target price of $713.00, while DA Davidson increased its target from $725.00 to $800.00, also issuing a “buy” rating. In contrast, Zacks Research lowered its rating from “strong-buy” to “hold.” Overall, the consensus rating stands at “Moderate Buy” with a target price averaging $692.83.
Stock Performance and Corporate Developments
As of the latest trading session, EMCOR Group’s stock opened at $681.92, with a market capitalization of $30.53 billion. The company has experienced considerable price fluctuations, recording a yearly low of $320.89 and a high of $778.64. The stock’s fifty-day moving average is $626.09, while the two-hundred-day moving average is $627.61.
In its recent quarterly earnings report, released on October 30, 2023, EMCOR Group announced an earnings per share (EPS) of $6.57, meeting analysts’ expectations. The company reported a revenue of $4.30 billion, surpassing estimates of $4.27 billion. This marks a year-over-year revenue increase of 16.4%, compared to an EPS of $5.80 from the same quarter last year. EMCOR has projected its fiscal year 2025 EPS guidance at between $25.00 and $25.75, with analysts predicting an EPS of $20.74 for the current fiscal year.
On December 18, 2023, EMCOR Group’s Board of Directors announced a share buyback program, authorizing the repurchase of up to $500 million of its shares, which represents up to 1.9% of its outstanding stock. Such buyback initiatives often indicate that the board views the company’s shares as undervalued.
Additionally, EMCOR Group has declared a quarterly dividend of $0.40 per share, which will be distributed on January 30, 2025, to shareholders on record as of January 14, 2025. This reflects an increase from the previous quarterly dividend of $0.25, resulting in an annualized dividend of $1.60 and a yield of 0.2%. Currently, the company’s dividend payout ratio is 6.43%.
EMCOR Group, Inc. provides a wide range of services, including mechanical and electrical construction, industrial and energy infrastructure, and facilities services to various clients across commercial, institutional, and industrial sectors. Their service offerings include design-build and traditional construction of mechanical, electrical, and plumbing systems, alongside ongoing facilities maintenance and specialized industrial services for sectors such as healthcare and utilities.
