EMCOR Group Inc. (EME) shares have reached a new 52-week high after the company announced a regular quarterly cash dividend. (See Also: EMCOR Group Per-Share Price Hits New 52-Week High (EME).)
EME this week declared a regular quarterly cash dividend of $0.08 per common share that will be paid on Oct. 28 to shareholders as of Oct. 17.
In addition, EME shares reached a 52-week high of $60.55 on Tuesday.
What Does the Future Hold for EME?
Many stock analysts and investors appear optimistic about EME.
The Cerbat Gem reported stock analysts at Sidoti issued a "buy" rating for EME in June, and EME currently boasts a consensus "buy" rating as well.
Also, numerous hedge funds and other institutional investors recently have increased their stakes in EME, including:
- BlackRock – Bolstered its position in EME by 52.9% in the first quarter of 2016.
- Nuveen Asset Management – Boosted its position in EME by 29.7% in 1Q16.
- Hancock Holding – Added a new position in EME in 1Q16.
- Genesee Valley Trust – Increased its position in EME by 1.9% in 2Q16.
EME recorded revenues of $1.93 billion in 2Q16, up 17% year to year.
Tony Guzzi, EME's CEO, said his company exhibited strong performances in several business segments during 2Q16, including:
- U.S. Industrial Services – Experienced 48% organic revenue growth year to year.
- U.S. Mechanical Construction – Produced double-digit organic revenue and operating income growth for the third consecutive quarter.
- U.S. Electrical Construction – Delivered "high-single-digit organic revenue growth," according to Guzzi.
Guzzi stated EME has been "pleased by [EME's] performance in the first half of the year and [is] encouraged by [the company's] prospects for continued growth in 2016 and beyond."
EME will search for ways to "expand the breadth of [its] service offerings and [its] geographic reach," Guzzi said. The company boasts a "healthy balance sheet," Guzzi noted, and remains in a strong position to capitalize on both organic and acquisition growth opportunities and deliver substantial returns to its shareholders going forward.