KBR Inc. (KBR) Testing Investors’ Patience Right Now

0
98

The Vanguard Group, Inc. recently announced the acquisition of new stake in KBR Inc. (NYSE:KBR). The institutional investor has increased its shareholding in the Industrials company by 2.62% to 13.6 million shares with purchase of 0.35 million shares. This fresh investment now brings its stake to 9.56% valued currently at $306.75 million. In addition, Massachusetts Financial Services. raised its holdings by 0.83 million to 8.08 million shares. And Russell Investment Management LLC has lifted its position by 7.96% or 0.21 million shares – to 2.85 million shares.

With over 0.8 million KBR Inc. (KBR) shares trading Wednesday and a closing price of $22.65 on the day, the dollar volume was approximately $18.01 million. The shares have shown a negative weekly performance of -1.92% and its price on 07/28/20 gained nearly 2.91%. Currently, there are 142.00M common shares owned by the public and among those 140.96M 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 KBR have a consensus price objective of $29.80. The analysts have set the share’s price value over the next 12 months at a high of $34.00 and a low of $25.00 should the stock experience a downside. Incidentally, analysts’ outlook for the KBR Inc. stock is 1.80 for the next 12 months. The average price target is 25.0% above its last price level and an upside to the estimated low will see the stock gain 9.4% over that period. But an upside of 33.38% will see the stock hit the forecast high price target while mean target price for the stock is $30.00.

Insiders at the company have transacted a total of 82 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 50 of these insider trades were purchases, accounting for 314,420 shares. Insider sales of the common stock occurred on 32 occasions, with total insider shares sold totaling 148,866 shares.

The top 3 mutual fund holders in KBR Inc. are Vanguard Total Stock Market Index, MFS Mid Cap Value Fund, and iShares Core S&P Mid Cap ETF. Vanguard Total Stock Market Index owns 4.06 million shares of the company’s stock, all valued at over $91.54 million. The company sold 21705.0 shares recently to bring their total holdings to about 2.85% of the shares outstanding. iShares Core S&P Mid Cap ETF now owns shares totaling to 2.69% of the shares outstanding.

Shares of KBR Inc. (NYSE: KBR) opened at $22.19, up $0.18 from a prior closing price of $22.01. However, the script later closed the day at $22.65, up 2.91%. The company’s stock has a 5-day price change of -1.92% and 2.99% over the past three months. KBR shares are trading -27.84% year to date (YTD), with the 12-month market performance down to -16.31% lower. It has a 12-month low price of $12.00 and touched a high of $31.92 over the same period. Currently, 0.8 million shares have been traded, compared to an average intraday trading volume of 1.55 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 2.42%, -2.09%, and -9.42% respectively.

Institutional ownership of KBR Inc. (NYSE: KBR) shares accounts for 99.20% of the company’s 142.00M shares outstanding. Mutual fund holders own 39.13%, while other institutional holders and individual stakeholders account for 58.81% and 14.42% respectively.

It has a market capitalization of $3.18B and a beta (3y monthly) value of 1.25. The stock’s trailing 12-month PE ratio is 54.75, while the earnings-per-share (ttm) stands at $0.40. The company has a PEG of 8.32 and a Quick Ratio of 1.20 with the debt-to-equity ratio at 0.66. Price movements for the stock have been influenced by the stock’s volatility, which stands at 2.34% over the week and 3.22% over the month.

Analysts forecast that KBR Inc. (KBR) will achieve an EPS of $0.37 for the current quarter, $0.42 for the next quarter and $1.8 for 2021. The lowest estimate earnings-per-share for the quarter is $0.29 while analysts give the company a high EPS estimate of $0.4. Comparatively, EPS for the current quarter was $0.41 a year ago. Earnings per share for the fiscal year are expected to decrease by -28.60%, and 10.17% over the next financial year. EPS should shrink at an annualized rate of 6.58% over the next five years, compared to 16.70% 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 KBR Inc. (KBR) as a “Strong Buy” at a consensus score of 1.80. Specifically, 10 Wall Street analysts polled rate the stock as a buy, while 0 of the 11 advise that investors “hold,” and 0 rated it as a “Sell.”

Looking at the support for the KBR, a number of firms have released research notes about the stock. Goldman stated their Buy rating for the stock in a research note on June 03, 2020, with the firm’s price target at $24-$31. UBS coverage for the KBR Inc. (KBR) stock in a research note released on May 26, 2020 offered a Buy rating with a price target of $28. Citigroup was of a view on April 27, 2020 that the stock is Buy, while Credit Suisse gave the stock Outperform rating on March 27, 2020, issuing a price target of $34. BofA/Merrill on their part issued Buy rating on August 22, 2019.

LEAVE A REPLY

Please enter your comment!
Please enter your name here