EMCOR Group (NYSE:EME) Initiates Stock Buyback Plan

EMCOR Group (NYSE:EME) declared that its board has approved a share buyback plan on Thursday, December 18th, RTT News reports. The company plans to buyback $500.00 million in outstanding shares. This buyback authorization authorizes the construction company to buy up to 1.9% of its stock through open market purchases. Stock buyback plans are typically a sign that the company’s board of directors believes its shares are undervalued.

EMCOR Group Trading Up 2.7%

Shares of EME traded up $16.36 during midday trading on Thursday, hitting $612.83. The stock had a trading volume of 467,881 shares, compared to its average volume of 379,762. The business has a 50-day simple moving average of $648.04 and a two-hundred day simple moving average of $606.72. The firm has a market cap of $27.44 billion, a P/E ratio of 24.64 and a beta of 1.17. EMCOR Group has a fifty-two week low of $320.89 and a fifty-two week high of $778.64.

EMCOR Group (NYSE:EME) last posted its quarterly earnings data on Thursday, October 30th. The construction company reported $6.57 EPS for the quarter, hitting analysts’ consensus estimates of $6.57. The firm had revenue of $4.30 billion during the quarter, compared to analyst estimates of $4.27 billion. EMCOR Group had a net margin of 6.96% and a return on equity of 37.04%. The company’s revenue was up 16.4% on a year-over-year basis. During the same quarter last year, the business posted $5.80 EPS. EMCOR Group has set its FY 2025 guidance at 25.000-25.75 EPS. On average, analysts expect that EMCOR Group will post 20.74 earnings per share for the current fiscal year.

EMCOR Group Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Thursday, October 30th. Shareholders of record on Wednesday, October 15th were paid a dividend of $0.25 per share. This represents a $1.00 annualized dividend and a yield of 0.2%. The ex-dividend date of this dividend was Wednesday, October 15th. EMCOR Group’s payout ratio is 4.02%.

Analyst Upgrades and Downgrades

EME has been the topic of several research analyst reports. Zacks Research cut EMCOR Group from a “strong-buy” rating to a “hold” rating in a research report on Wednesday, November 19th. The Goldman Sachs Group upgraded shares of EMCOR Group from a “sell” rating to a “neutral” rating and boosted their price target for the stock from $495.00 to $676.00 in a research report on Tuesday, October 7th. Stifel Nicolaus upped their price target on shares of EMCOR Group from $692.00 to $718.00 and gave the company a “buy” rating in a report on Monday, October 13th. DA Davidson lifted their price objective on shares of EMCOR Group from $725.00 to $800.00 and gave the stock a “buy” rating in a research note on Friday, October 31st. Finally, Weiss Ratings reissued a “buy (b)” rating on shares of EMCOR Group in a research note on Wednesday, October 8th. One investment analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating and four have issued a Hold rating to the stock. According to MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $692.83.

Insider Activity at EMCOR Group

In other EMCOR Group news, Director Robin A. Walker-Lee sold 1,325 shares of the company’s stock in a transaction that occurred on Monday, November 3rd. The shares were sold at an average price of $677.22, for a total value of $897,316.50. Following the transaction, the director owned 6,140 shares in the company, valued at approximately $4,158,130.80. This represents a 17.75% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Corporate insiders own 0.83% of the company’s stock.

About EMCOR Group

EMCOR Group, Inc provides construction and facilities, building, and industrial services in the United States and the United Kingdom. It offers design, integration, installation, start-up, operation, and maintenance services related to power transmission, distribution, and generation systems; energy solutions; premises electrical and lighting systems; process instrumentation; low-voltage systems; voice and data communications systems; roadway and transit lighting, signaling, and fiber optic lines; computerized traffic control systems, and signal and communication equipment; heating, ventilation, air conditioning, refrigeration, and geothermal solutions; clean-room process ventilation systems; fire protection and suppression systems; plumbing, process, and high-purity piping systems; controls and filtration systems; water and wastewater treatment systems; central plant heating and cooling systems; crane and rigging services; millwright services; and steel fabrication, erection, and welding services.