Are Smart Investors Making the Right Decision? Jacobs Solutions Inc. (J)

Jacobs Solutions Inc. (NYSE: J) stock fell -1.48% on Thursday to $112.90 against a previous-day closing price of $114.60. With 0.67 million shares changed hands, the volume of the stock remained heavier than its average volume of 0.61 million shares. During the session, the Engineering & Construction company that operates in wider Industrials sector, reached to the highest price of $113.96 whereas the lowest price it dropped to was $112.35. The 52-week range on J shows that it touched its highest point at $140.90 and its lowest point at $106.78 during that stretch. It currently has a 1-year price target of $152.13. With its current market cap of 14.27 billion, J has annualized dividend of $1.04 while the current yield stands at 0.92%. Beta for the stock currently stands at 0.83.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of J was down-trending over the past week, with a drop of -3.07%, but this was up by 0.21% over a month. Three-month performance dropped to -6.58% while six-month performance fell -8.58%. The stock lost -17.69% in the past year, while it has lost -5.97% so far this year. A look at the trailing 12-month EPS for J yields 6.04 with Next year EPS estimates of 8.40. For the next quarter, that number is 1.84. This implies an EPS growth rate of 59.40% for this year and 14.05% for next year. EPS is expected to grow by 10.43% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 28.80%.

Float and Shares Shorts:

At present, 126.89 million J shares are outstanding with a float of 125.08 million shares on hand for trading. On May 14, 2023, short shares totaled 1.38 million, which was 1.09% higher than short shares on Apr 13, 2023. In addition to Mr. Steven J. Demetriou as the firm’s Exec. Chair, Mr. Robert V. Pragada serves as its Pres, COO, CEO & Director.

Institutional Ownership:

Through their ownership of 87.36% of J’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 46.94% of J, in contrast to 39.64% held by mutual funds. Shares owned by individuals account for 1.13%. As the largest shareholder in J with 10.93% of the stake, The Vanguard Group, Inc. holds 13,849,890 shares worth 13,849,890. A second-largest stockholder of J, SSgA Funds Management, Inc., holds 7,679,466 shares, controlling over 6.06% of the firm’s shares. PRIMECAP Management Co. is the third largest shareholder in J, holding 6,358,327 shares or 5.02% stake. With a 3.11% stake in J, the Vanguard Total Stock Market ETF is the largest stakeholder. A total of 3,940,545 shares are owned by the mutual fund manager. The American Funds Growth Fund of Ame, which owns about 2.92% of J stock, is the second-largest Mutual Fund holder. It holds 3,695,620 shares valued at 426.7 million. Vanguard 500 Index Fund holds 2.35% of the stake in J, owning 2,974,284 shares worth 343.41 million.

An Overview of Recent Financials:

Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Mar 30, 2023, J reported revenue of $3.83B and operating income of $265.76M. The EBITDA in the recently reported quarter was $375.10M and diluted EPS was $1.52.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for J since 0 analysts follow the stock currently. In the same way, a target price assigned to a stock can also reveal much about its potential. With J analysts setting a high price target of $175.00 and a low target of $135.00, the average target price over the next 12 months is $151.19. Based on these targets, J could surge 55.0% to reach the target high and rise by 19.57% to reach the target low. Reaching the average price target will result in a growth of 33.91% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy.

Summary of Insider Activity:

Insiders traded J stock several times over the past three months with 1 Buys and 4 Sells. In these transactions, 3,500 shares were bought while 13,653 shares were sold. The number of buy transactions has increased to 45 while that of sell transactions has risen to 54 over the past year. The total number of shares bought during that period was 402,416 while 238,259 shares were sold.

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