Value Hunters: Look To AECOM (NYSE: ACM)

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PRIMECAP Management Co. recently announced the acquisition of new stake in AECOM (NYSE:ACM). The institutional investor has increased its shareholding in the Industrials company by 6.38% to 23.55 million shares with purchase of 1.41 million shares. This fresh investment now brings its stake to 14.71% valued currently at $884.93 million. In addition, Fidelity Management & Research Co. raised its holdings by 1.56 million to 20.01 million shares. And The Vanguard Group, Inc. has lifted its position by 1.19% or 0.16 million shares – to 13.92 million shares.

With over 0.64 million AECOM (ACM) shares trading Thursday and a closing price of $37.48 on the day, the dollar volume was approximately $23.99 million. The shares have shown a positive weekly performance of 6.66% and its price on 07/16/20 lost nearly -1.21%. Currently, there are 158.55M common shares owned by the public and among those 152.39M shares have been available to trade.

An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 11 analysts who have offered their price forecasts for ACM have a consensus price objective of $46.11. The analysts have set the share’s price value over the next 12 months at a high of $55.00 and a low of $42.00 should the stock experience a downside. Incidentally, analysts’ outlook for the AECOM stock is 1.60 for the next 12 months. The average price target is 18.72% above its last price level and an upside to the estimated low will see the stock gain 10.76% over that period. But an upside of 31.85% will see the stock hit the forecast high price target while mean target price for the stock is $45.00.

Insiders at the company have transacted a total of 51 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 34 of these insider trades were purchases, accounting for 728,447 shares. Insider sales of the common stock occurred on 17 occasions, with total insider shares sold totaling 331,167 shares.

The top 3 mutual fund holders in AECOM are PRIMECAP Odyssey Growth Fund, Vanguard Capital Opportunity Fund, and PRIMECAP Odyssey Stock Fund. PRIMECAP Odyssey Growth Fund owns 5.26 million shares of the company’s stock, all valued at over $197.73 million. The company sold 18400.0 shares recently to bring their total holdings to about 3.29% of the shares outstanding. Vanguard Capital Opportunity Fund bought 0.17 million shares to see its total holdings expand to 4.66 million shares valued at over $175.08 million and representing 2.91% of the shares outstanding. PRIMECAP Odyssey Stock Fund bought 0.42 million shares to bring its total holdings to over 4.32 million shares at a value of $162.5 million. PRIMECAP Odyssey Stock Fund now owns shares totaling to 2.70% of the shares outstanding.

Shares of AECOM (NYSE: ACM) opened at $37.78, down -$0.16 from a prior closing price of $37.94. However, the script later closed the day at $37.48, down -1.21%. The company’s stock has a 5-day price change of 6.66% and 20.40% over the past three months. ACM shares are trading -13.10% year to date (YTD), with the 12-month market performance up to 1.46% higher. It has a 12-month low price of $21.76 and touched a high of $52.40 over the same period. Currently, 0.64 million shares have been traded, compared to an average intraday trading volume of 1.76 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by 1.63%, -0.13%, and -5.83% respectively.

Institutional ownership of AECOM (NYSE: ACM) shares accounts for 89.20% of the company’s 158.55M shares outstanding. Mutual fund holders own 54.21%, while other institutional holders and individual stakeholders account for 6.86% and 34.25% respectively.

It has a market capitalization of $5.87B and a beta (3y monthly) value of 1.74. The earnings-per-share (ttm) stands at -$2.06. Price movements for the stock have been influenced by the stock’s volatility, which stands at 2.70% over the week and 3.47% over the month.

Analysts forecast that AECOM (ACM) will achieve an EPS of $0.49 for the current quarter, $0.59 for the next quarter and $2.58 for 2021. The lowest estimate earnings-per-share for the quarter is $0.4 while analysts give the company a high EPS estimate of $0.55. Comparatively, EPS for the current quarter was $0.72 a year ago. Earnings per share for the fiscal year are expected to decrease by -405.90%, and 23.11% over the next financial year. EPS should grow at an annualized rate of 17.30% over the next five years, compared to -22.10% over the past 5-year period.

If you are looking to buy this stock, then you may note that the average analyst recommendation by 11 brokerage firm advisors rate AECOM (ACM) as a “Strong Buy” at a consensus score of 1.60. Specifically, 8 Wall Street analysts polled rate the stock as a buy, while 2 of the 11 advise that investors “hold,” and 0 rated it as a “Sell.”

Looking at the support for the ACM, a number of firms have released research notes about the stock. Deutsche Bank stated their Buy rating for the stock in a research note on November 05, 2019, with the firm’s price target at $44-$49. BofA/Merrill coverage for the AECOM (ACM) stock in a research note released on October 14, 2019 offered a Buy rating with a price target of. Argus was of a view on September 20, 2019 that the stock is Buy, while BofA/Merrill gave the stock Neutral rating on August 22, 2019, issuing a price target of $37. Barclays on their part issued Overweight rating on August 19, 2019.

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