Jacobs Engineering Group (JEC) Downgraded to Hold at Zacks Investment Research

Zacks Investment Research lowered shares of Jacobs Engineering Group (NYSE:JEC) from a buy rating to a hold rating in a report published on Tuesday morning.

According to Zacks, “Shares of Jacobs have outperformed the industry so far this year. Earnings estimates for fiscal 2018 and fiscal 2019 have remained stable over the last 60 days. Robust segmental performance, ongoing contract wins and CH2M buyout will likely aid in augmenting Jacobs top-line performances going forward. On the other hand, higher revenues, increased focus on high-value businesses and efficient project execution are likely to boost the company’s bottom-line results in the upcoming quarters. Elevated construction spending in the United States and Trump’s impetus to boost infrastructure spending have been triggering demand for Jacob’s state-of-the-art construction, and engineering services since the past few quarters. However, Jacobs' business remains exposed to stiff industry rivalry and persistent headwinds in the global energy and commodity markets remain a matter for concern.”

A number of other analysts have also commented on the company. Jefferies Financial Group reaffirmed a hold rating and set a $74.00 price objective on shares of Jacobs Engineering Group in a research note on Tuesday, August 7th. DA Davidson raised Jacobs Engineering Group from a neutral rating to a buy rating and set a $85.00 price objective on the stock in a research note on Monday, August 6th. ValuEngine raised Jacobs Engineering Group from a hold rating to a buy rating in a research note on Wednesday, September 19th. KeyCorp increased their price objective on Jacobs Engineering Group from $75.00 to $80.00 and gave the company an overweight rating in a research note on Tuesday, August 7th. Finally, Credit Suisse Group increased their price objective on Jacobs Engineering Group from $86.00 to $88.00 and gave the company an outperform rating in a research note on Tuesday, August 7th. Three investment analysts have rated the stock with a hold rating and fourteen have issued a buy rating to the company. Jacobs Engineering Group presently has an average rating of Buy and an average price target of $79.85.

Shares of JEC stock opened at $72.00 on Tuesday. Jacobs Engineering Group has a fifty-two week low of $55.21 and a fifty-two week high of $78.32. The firm has a market capitalization of $10.86 billion, a PE ratio of 22.50, a PEG ratio of 1.34 and a beta of 1.55. The company has a debt-to-equity ratio of 0.39, a current ratio of 1.45 and a quick ratio of 1.45.

Jacobs Engineering Group (NYSE:JEC) last posted its quarterly earnings data on Monday, August 6th. The construction company reported $1.35 EPS for the quarter, beating analysts’ consensus estimates of $1.21 by $0.14. The business had revenue of $4.16 billion for the quarter, compared to analyst estimates of $4 billion. Jacobs Engineering Group had a return on equity of 9.83% and a net margin of 2.19%. The business’s revenue for the quarter was up 65.3% compared to the same quarter last year. During the same quarter last year, the company earned $0.79 earnings per share. As a group, sell-side analysts anticipate that Jacobs Engineering Group will post 4.38 earnings per share for the current fiscal year.

The firm also recently declared a quarterly dividend, which will be paid on Friday, October 26th. Shareholders of record on Friday, September 28th will be paid a $0.15 dividend. This represents a $0.60 dividend on an annualized basis and a yield of 0.83%. The ex-dividend date is Thursday, September 27th. Jacobs Engineering Group’s payout ratio is 18.52%.

Large investors have recently modified their holdings of the business. Integrated Investment Consultants LLC acquired a new stake in Jacobs Engineering Group in the 2nd quarter worth about $102,000. Point72 Asia Hong Kong Ltd boosted its stake in Jacobs Engineering Group by 2,423.3% in the 1st quarter. Point72 Asia Hong Kong Ltd now owns 2,271 shares of the construction company’s stock worth $134,000 after buying an additional 2,181 shares during the last quarter. Northwestern Mutual Wealth Management Co. boosted its stake in Jacobs Engineering Group by 88.6% in the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 2,137 shares of the construction company’s stock worth $136,000 after buying an additional 1,004 shares during the last quarter. Rampart Investment Management Company LLC boosted its stake in Jacobs Engineering Group by 73.5% in the 1st quarter. Rampart Investment Management Company LLC now owns 2,627 shares of the construction company’s stock worth $155,000 after buying an additional 1,113 shares during the last quarter. Finally, Trust Department MB Financial Bank N A acquired a new stake in Jacobs Engineering Group in the 2nd quarter worth about $213,000. 86.52% of the stock is currently owned by hedge funds and other institutional investors.

Jacobs Engineering Group Company Profile

Jacobs Engineering Group Inc provides technical, professional, and construction services. It offers project services that include engineering, architectural, interiors, design, planning, and related services, as well as planning, scheduling, procurement, estimating, cost engineering, project accounting and delivery, safety, and other support services.

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