KBR (NYSE:KBR) Cut to “Hold” at Zacks Investment Research

Zacks Investment Research downgraded shares of KBR (NYSE:KBR) from a strong-buy rating to a hold rating in a research note issued to investors on Tuesday morning, Zacks.com reports. The firm currently has $29.00 target price on the construction company’s stock.

According to Zacks, “Shares of KBR have outperformed its industry year to date. The solid performance was backed by robust contribution from Government Solutions and Technology businesses, courtesy of ongoing growth in its overseas logistics and mission support programs. Incremental revenues, and accretive earnings from the acquisition of SGT and consolidation of Aspire added to the positives. Its significant increase in backlog level, particularly in Government Solutions and Technology Solutions, positions it well for future expansion. Further, solid prospects in Energy Solutions and refining and petrochemicals market raise hopes. Earnings estimates remained stable for 2019 and 2020 over the past 60 days. Yet, risk of cost overruns, intense competition and dependency upon major construction contracts pose concerns.”

A number of other research analysts have also recently issued reports on KBR. Cowen reaffirmed a hold rating and issued a $23.00 price target on shares of KBR in a report on Monday, April 15th. TheStreet raised shares of Medpace from a c rating to a b- rating in a report on Wednesday, April 10th. KeyCorp raised their price target on shares of PGT Innovations from $20.00 to $22.00 and gave the stock an overweight rating in a report on Monday, May 6th. Macquarie cut shares of Janus Henderson Group from an outperform rating to a neutral rating in a report on Thursday, May 2nd. Finally, Deutsche Bank lowered shares of Cogent Communications from a buy rating to a hold rating in a research note on Thursday, May 2nd. Seven research analysts have rated the stock with a hold rating, three have given a buy rating and one has given a strong buy rating to the company’s stock. KBR has a consensus rating of Hold and an average target price of $24.80.

Shares of KBR stock opened at $25.05 on Tuesday. The company has a debt-to-equity ratio of 0.81, a current ratio of 1.31 and a quick ratio of 1.31. The company has a market cap of $3.56 billion, a P/E ratio of 16.25, a P/E/G ratio of 1.69 and a beta of 1.45. The stock has a 50-day moving average of $23.77. KBR has a one year low of $13.90 and a one year high of $25.38.

KBR (NYSE:KBR) last posted its quarterly earnings results on Wednesday, May 1st. The construction company reported $0.36 earnings per share (EPS) for the quarter, topping the Zacks’ consensus estimate of $0.33 by $0.03. The business had revenue of $1.34 billion during the quarter, compared to analysts’ expectations of $1.20 billion. KBR had a net margin of 3.51% and a return on equity of 12.84%. As a group, analysts expect that KBR will post 1.66 earnings per share for the current fiscal year.

The firm also recently disclosed a quarterly dividend, which will be paid on Monday, July 15th. Stockholders of record on Monday, June 17th will be paid a $0.08 dividend. The ex-dividend date is Friday, June 14th. This represents a $0.32 dividend on an annualized basis and a dividend yield of 1.28%. KBR’s payout ratio is currently 20.92%.

Large investors have recently added to or reduced their stakes in the company. Peregrine Capital Management LLC grew its position in KBR by 14.2% during the first quarter. Peregrine Capital Management LLC now owns 467,311 shares of the construction company’s stock valued at $8,921,000 after buying an additional 58,207 shares during the period. California State Teachers Retirement System grew its position in KBR by 2.3% during the fourth quarter. California State Teachers Retirement System now owns 220,813 shares of the construction company’s stock valued at $3,352,000 after buying an additional 4,979 shares during the period. Mason Street Advisors LLC grew its position in KBR by 1.6% during the first quarter. Mason Street Advisors LLC now owns 74,986 shares of the construction company’s stock valued at $1,431,000 after buying an additional 1,194 shares during the period. CNA Financial Corp grew its position in KBR by 8.3% during the first quarter. CNA Financial Corp now owns 134,684 shares of the construction company’s stock valued at $2,571,000 after buying an additional 10,265 shares during the period. Finally, Foundry Partners LLC grew its position in KBR by 9.0% during the first quarter. Foundry Partners LLC now owns 680,802 shares of the construction company’s stock valued at $12,997,000 after buying an additional 55,968 shares during the period. Hedge funds and other institutional investors own 98.86% of the company’s stock.

KBR Company Profile

KBR, Inc provides professional services and technologies across the asset and program life-cycle within the government services and hydrocarbons industries worldwide. The company operates through three segments: Government Services, Technology & Consulting, and Engineering & Construction. The Government Services segment offers life-cycle support solutions to defense, space, aviation, and other programs and missions for government agencies in the United States, the United Kingdom, and Australia.

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