Jacobs Solutions (NYSE:J) Shares Down 4.1% on Disappointing Earnings

Jacobs Solutions Inc. (NYSE:J)’s stock price dropped 4.1% during trading on Tuesday following a weaker than expected earnings announcement. The stock traded as low as $133.85 and last traded at $134.64. Approximately 396,630 shares traded hands during trading, a decline of 50% from the average daily volume of 798,293 shares. The stock had previously closed at $140.35.

The company reported $1.37 earnings per share for the quarter, missing analysts’ consensus estimates of $2.08 by ($0.71). The company had revenue of $2.96 billion for the quarter, compared to the consensus estimate of $4.50 billion. Jacobs Solutions had a net margin of 3.72% and a return on equity of 14.76%. Jacobs Solutions’s revenue for the quarter was up 4.4% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $1.90 earnings per share.

Jacobs Solutions Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Friday, November 22nd. Investors of record on Friday, October 25th will be paid a dividend of $0.29 per share. The ex-dividend date is Friday, October 25th. This represents a $1.16 annualized dividend and a yield of 0.87%. Jacobs Solutions’s dividend payout ratio is currently 22.92%.

Wall Street Analyst Weigh In

A number of research firms recently weighed in on J. StockNews.com assumed coverage on Jacobs Solutions in a research report on Monday. They issued a “buy” rating for the company. Truist Financial dropped their target price on shares of Jacobs Solutions from $158.00 to $139.00 and set a “hold” rating on the stock in a research report on Wednesday, October 9th. Royal Bank of Canada upped their price target on shares of Jacobs Solutions from $161.00 to $167.00 and gave the company an “outperform” rating in a research report on Wednesday, August 7th. UBS Group lifted their price objective on shares of Jacobs Solutions from $161.00 to $165.00 and gave the stock a “buy” rating in a research report on Wednesday, August 14th. Finally, Robert W. Baird reduced their target price on Jacobs Solutions from $163.00 to $160.00 and set an “outperform” rating for the company in a report on Wednesday, August 7th. Four investment analysts have rated the stock with a hold rating and nine have issued a buy rating to the stock. According to MarketBeat.com, Jacobs Solutions has a consensus rating of “Moderate Buy” and an average price target of $159.30.

Insiders Place Their Bets

In related news, EVP Shelette M. Gustafson sold 4,167 shares of the business’s stock in a transaction that occurred on Thursday, August 29th. The stock was sold at an average price of $150.14, for a total value of $625,633.38. Following the completion of the sale, the executive vice president now directly owns 24,564 shares in the company, valued at approximately $3,688,038.96. The trade was a 14.50 % decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, Director Christopher M.T. Thompson sold 1,898 shares of Jacobs Solutions stock in a transaction that occurred on Thursday, August 29th. The shares were sold at an average price of $150.85, for a total transaction of $286,313.30. Following the completion of the transaction, the director now directly owns 42,069 shares in the company, valued at approximately $6,346,108.65. This represents a 4.32 % decrease in their position. The disclosure for this sale can be found here. Insiders own 1.00% of the company’s stock.

Hedge Funds Weigh In On Jacobs Solutions

Institutional investors and hedge funds have recently bought and sold shares of the stock. Sei Investments Co. grew its holdings in shares of Jacobs Solutions by 32.1% during the 2nd quarter. Sei Investments Co. now owns 271,760 shares of the company’s stock worth $37,968,000 after purchasing an additional 66,002 shares in the last quarter. UniSuper Management Pty Ltd increased its holdings in Jacobs Solutions by 448.6% in the 1st quarter. UniSuper Management Pty Ltd now owns 7,801 shares of the company’s stock valued at $1,199,000 after buying an additional 6,379 shares during the period. Aigen Investment Management LP bought a new stake in Jacobs Solutions in the 3rd quarter valued at $709,000. Asset Management One Co. Ltd. raised its stake in shares of Jacobs Solutions by 6.8% in the 3rd quarter. Asset Management One Co. Ltd. now owns 76,308 shares of the company’s stock valued at $9,989,000 after buying an additional 4,858 shares in the last quarter. Finally, MBB Public Markets I LLC bought a new position in shares of Jacobs Solutions during the 2nd quarter worth about $1,302,000. Institutional investors own 85.65% of the company’s stock.

Jacobs Solutions Stock Performance

The company has a debt-to-equity ratio of 0.31, a quick ratio of 1.14 and a current ratio of 1.14. The firm has a market capitalization of $16.64 billion, a price-to-earnings ratio of 27.74, a price-to-earnings-growth ratio of 1.57 and a beta of 0.71. The firm’s 50-day moving average price is $142.76 and its two-hundred day moving average price is $142.59.

Jacobs Solutions Company Profile

Jacobs Solutions Inc provides consulting, technical, engineering, scientific, and project delivery services for the government and private sectors in the United States, Europe, Canada, India, Asia, Australia, New Zealand, the Middle East, and Africa. It operates through Critical Mission Solutions, People & Places Solutions, Divergent Solutions, and PA Consulting segments.