AECOM (NYSE:ACM) Sees Strong Trading Volume - Should You Buy?

Shares of AECOM (NYSE:ACM - Get Free Report) saw unusually-strong trading volume on Friday . Approximately 521,515 shares traded hands during trading, a decline of 35% from the previous session's volume of 802,075 shares.The stock last traded at $107.71 and had previously closed at $107.04.

Wall Street Analyst Weigh In

ACM has been the subject of a number of recent analyst reports. KeyCorp boosted their target price on shares of AECOM from $115.00 to $122.00 and gave the company an "overweight" rating in a research note on Thursday, November 7th. The Goldman Sachs Group assumed coverage on shares of AECOM in a research report on Friday, November 22nd. They issued a "buy" rating and a $130.00 price objective for the company. Robert W. Baird upped their target price on shares of AECOM from $113.00 to $122.00 and gave the stock an "outperform" rating in a research note on Tuesday, November 19th. Truist Financial lifted their price target on shares of AECOM from $119.00 to $129.00 and gave the company a "buy" rating in a research note on Friday, November 22nd. Finally, StockNews.com raised AECOM from a "hold" rating to a "buy" rating in a research note on Sunday, October 27th. Nine investment analysts have rated the stock with a buy rating, According to MarketBeat.com, the company has a consensus rating of "Buy" and an average target price of $119.38.

AECOM Price Performance

The company has a current ratio of 1.13, a quick ratio of 1.13 and a debt-to-equity ratio of 1.03. The firm's 50-day moving average price is $110.41 and its two-hundred day moving average price is $99.31. The stock has a market cap of $14.30 billion, a PE ratio of 36.48, a PEG ratio of 1.92 and a beta of 1.17.

AECOM (NYSE:ACM - Get Free Report) last posted its earnings results on Monday, November 18th. The construction company reported $1.27 earnings per share for the quarter, topping analysts' consensus estimates of $1.24 by $0.03. AECOM had a return on equity of 25.46% and a net margin of 2.50%. The company had revenue of $1.81 billion during the quarter, compared to analyst estimates of $1.86 billion. During the same quarter in the prior year, the business earned $1.01 earnings per share. AECOM's revenue was up 4.9% on a year-over-year basis. On average, equities analysts expect that AECOM will post 5.1 earnings per share for the current fiscal year.

AECOM Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, January 17th. Shareholders of record on Thursday, January 2nd will be issued a $0.26 dividend. The ex-dividend date of this dividend is Thursday, January 2nd. This is an increase from AECOM's previous quarterly dividend of $0.22. This represents a $1.04 dividend on an annualized basis and a yield of 0.96%. AECOM's payout ratio is currently 35.14%.

AECOM announced that its board has approved a stock buyback plan on Monday, November 18th that permits the company to buyback $1.00 billion in shares. This buyback authorization permits the construction company to purchase up to 6.8% of its shares through open market purchases. Shares buyback plans are typically an indication that the company's board believes its stock is undervalued.

Insider Activity

In related news, CFO Gaurav Kapoor sold 42,400 shares of the company's stock in a transaction dated Wednesday, November 6th. The stock was sold at an average price of $115.34, for a total transaction of $4,890,416.00. Following the transaction, the chief financial officer now directly owns 31,228 shares of the company's stock, valued at $3,601,837.52. This represents a 57.59 % decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this link. Company insiders own 0.42% of the company's stock.

Hedge Funds Weigh In On AECOM

Several hedge funds have recently modified their holdings of the stock. Mackenzie Financial Corp grew its position in AECOM by 12.5% during the 2nd quarter. Mackenzie Financial Corp now owns 10,621 shares of the construction company's stock worth $936,000 after purchasing an additional 1,180 shares during the last quarter. Sumitomo Mitsui Trust Group Inc. lifted its stake in shares of AECOM by 5.0% during the third quarter. Sumitomo Mitsui Trust Group Inc. now owns 258,680 shares of the construction company's stock worth $26,714,000 after buying an additional 12,224 shares during the period. BRITISH COLUMBIA INVESTMENT MANAGEMENT Corp grew its holdings in shares of AECOM by 60.5% during the second quarter. BRITISH COLUMBIA INVESTMENT MANAGEMENT Corp now owns 26,051 shares of the construction company's stock valued at $2,296,000 after buying an additional 9,815 shares during the last quarter. B. Metzler seel. Sohn & Co. Holding AG acquired a new position in shares of AECOM in the 3rd quarter valued at $495,000. Finally, Barrow Hanley Mewhinney & Strauss LLC increased its position in shares of AECOM by 5.5% in the 2nd quarter. Barrow Hanley Mewhinney & Strauss LLC now owns 2,339,185 shares of the construction company's stock valued at $206,176,000 after acquiring an additional 122,015 shares during the period. Institutional investors and hedge funds own 85.41% of the company's stock.

About AECOM

AECOM, together with its subsidiaries, provides professional infrastructure consulting services worldwide. It operates in three segments: Americas, International, and AECOM Capital. The company offers planning, consulting, architectural and engineering design, construction and program management, and investment and development services to public and private clients.