Are AECOM (ACM) Shares Headed For A Pullback?

On Wednesday, shares of AECOM (NYSE:ACM) marked $49.42 per share versus a previous $49.74 closing price. With having a -0.64% loss, an insight into the fundamental values of AECOM, investors would also find a great ally in the technical patterns of the stock movements showed in stock charts. ACM showed a rise of 14.58% within its YTD performance, with highs and lows between $28.11 – $50.32 during the period of 52 weeks, compared to the simple moving average of 32.59% in the period of the last 200 days.

Deutsche Bank equity researchers changed the status of AECOM (NYSE: ACM) shares from “Hold” to a “Buy” rating in the report published on November 5th, 2019. Other analysts, including BofA/Merrill, also published their reports on ACM shares. BofA/Merrill repeated the rating from the previous report, marking ACM under “Buy” rating, in the report published on October 14th, 2019. Additionally, ACM shares got another “Buy” rating from Argus, setting a target price of $44 on the company’s shares, according to the report published in September 20th, 2019. On August 22nd, 2019, BofA/Merrill Resumed an Neutral rating and increased its price target to $37. On the other hand, Barclays Upgrade the “Overweight” rating for ACM shares, as published in the report on August 19th, 2019. Argus seems to be going bullish on the price of ACM shares, based on the price prediction for ACM. Another “Outperform” rating came from Robert W. Baird, providing a prediction for price target according to the report published in January 3rd, 2018.

AECOM (ACM) Analysis

The present dividend yield for ACM owners is set at 0, marking the return investors will get regardless of the company’s performance in the upcoming period. However, in order for the company to be able to pay its dividends, just like it is the case with AECOM, the company needs to provide a healthy cash flow, currently at the value of 11.39. In addition, the growth of sales from quarter to quarter is recording -3.60%, hinting the company’s progress in the upcoming progress.

In order to gain a clear insight on the performance of AECOM (ACM) as it may occur in the future, there are more than several well-rounded types of analysis and research techniques, while equity is most certainly one of the more important indicators into the company’s growth and performance. In this case, you want to make sure that the return on the present equity of -6.40% is enough for you to make a profit out of your investment. You may also count in the quick ratio of the company, currently set at 1.20 so you would make sure that the company is able to cover the debts it may have, which can be easily seen in annual reports of the company.

Set to affect the volatility of a given stock, the average volume can also be a valuable indicator, while ACM is currently recording an average of 1.20M in volumes. The volatility of the stock on monthly basis is set at 1.78%, while the weekly volatility levels are marked at 3.08%with 13.01% of gain in the last seven days. Additionally, long-term investors are predicting the target price of $49.22, indicating growth from the present price of $49.42, which can represent yet another valuable research and analysis points that can help you decide whether to invest in ACM or pass.

What to Look for When Analyzing AECOM Shares?

AECOM (ACM) is based in the USA and it represents one of the well-known company operating with Services sector. If you wish to compare ACM shares with other companies under Electronic Equipment and Consumer Goods, a factor to note is the P/E value of for AECOM, while the value 13.31 can represent an indicator in the future growth of the company in terms of investor’s expectations. The later value should have a steady growth rate, increasing and growing gradually, which serves the purpose of reliably showcasing the progress of the company. The value -1.68 is supported by the yearly ESP growth of -405.90%.

Besides from looking into the fundamentals, you should also note the number of people inside the company owning the shares, as the values should be in line with the expectations of investors. In that spirit, the present ownership of stocks inside the company is set at 0.70%, which can provide you with an insight of how involved executives are in owning shares of the company. In oppose to the executives’ share, the institutional ownership counts 89.80% of shares, carrying an equal significance as an indicator of value, as the presence of large investors may signal a strong company.

Are Institutional Investors Increasing Stakes in ACM Shares?

It appears that more than several institutional investors and hedge funds decided to increase stakes in ACM in the recent period. That is how PRIMECAP Management Co. now has an increase position in ACM by 0.93% in the first quarter, owning 21.88 million shares of ACM stocks, with the value of $943.63 million after the purchase of an additional 201,600 shares during the last quarter. In the meanwhile, The Vanguard Group, Inc. also increased their stake in ACM shares changed 0.25% in the first quarter, which means that the company now owns 14.31 million shares of company, all valued at $617.16 million after the acquisition of additional 35,079 shares during the last quarter.

Starboard Value LP acquired a new position in AECOM during the first quarter, with the value of $257.71 million, and Dimensional Fund Advisors LP increased their stake in the company’s shares by 0.32% in the first quarter, now owning 15,213 shares valued at $204.37 million after the acquisition of the additional 4.74 million shares during the last quarter. In the end, SSgA Funds Management, Inc. increased their position by 1,275.99% during the first quarter, now owning 3.99 million ACM shares, now holding the value of $172.19 million in ACM with the purchase of the additional 126,510 shares during the period of the last quarter. At the present, 89.80% of ACM shares are in the ownership of institutional investors.