KBR, Inc. (KBR) Cut to “Sell” at Zacks Investment Research

Zacks Investment Research cut shares of KBR, Inc. (NYSE:KBR) from a hold rating to a sell rating in a research note released on Wednesday morning.

According to Zacks, “Over the past one year, KBR’s shares have underperformed the industry’s average gain significantly. Prolonged softness in the Engineering & Construction sector, coupled with volatility in oil and gas prices, may pose a threat to KBR's growth. Sluggish activities in several projects approaching completion add to the company’s concerns. Moreover, long-cycle nature of the contracts, volatility in material and equipment pricing and stiff competition pose as major concerns. Also, the company continues to incur high general and administrative expenses which are about $4-$5 million above the normative level. However, on the flip side, the company’s Government Services business is experiencing stellar growth and the company remains confident that recent acquisitions will continue to accelerate growth momentum of this business.”

KBR has been the subject of several other research reports. BidaskClub cut KBR from a hold rating to a sell rating in a report on Saturday, August 19th. KeyCorp set a $20.00 price objective on KBR and gave the company a buy rating in a report on Friday, August 25th. Finally, TheStreet upgraded KBR from a d+ rating to a c- rating in a report on Thursday, August 3rd. Three research analysts have rated the stock with a sell rating, one has issued a hold rating and six have issued a buy rating to the company’s stock. The stock has an average rating of Hold and an average price target of $19.00.

KBR (KBR) remained flat at $17.88 during trading on Wednesday. The stock had a trading volume of 1,343,362 shares. The stock’s 50 day moving average is $17.00 and its 200-day moving average is $15.50. The stock’s market capitalization is $2.50 billion. KBR has a 12-month low of $13.17 and a 12-month high of $18.28.

KBR (NYSE:KBR) last announced its quarterly earnings data on Wednesday, August 2nd. The construction company reported $0.54 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $0.49 by $0.05. The company had revenue of $1.09 billion during the quarter, compared to analysts’ expectations of $1.10 billion. KBR had a positive return on equity of 8.74% and a negative net margin of 0.81%. KBR’s revenue for the quarter was up 8.4% compared to the same quarter last year. During the same quarter last year, the company earned $0.35 EPS. On average, equities research analysts forecast that KBR will post $1.43 EPS for the current fiscal year.

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The company also recently announced a quarterly dividend, which will be paid on Friday, October 13th. Investors of record on Friday, September 15th will be paid a $0.08 dividend. The ex-dividend date of this dividend is Thursday, September 14th. This represents a $0.32 annualized dividend and a yield of 1.79%. KBR’s dividend payout ratio (DPR) is currently -128.00%.

Large investors have recently modified their holdings of the stock. Quantbot Technologies LP acquired a new stake in KBR in the 1st quarter valued at about $109,000. OLD Mutual Customised Solutions Proprietary Ltd. lifted its stake in KBR by 322.2% in the 1st quarter. OLD Mutual Customised Solutions Proprietary Ltd. now owns 7,600 shares of the construction company’s stock valued at $114,000 after purchasing an additional 5,800 shares during the last quarter. Shelton Capital Management acquired a new stake in KBR in the 2nd quarter valued at about $160,000. GSA Capital Partners LLP acquired a new stake in KBR in the 2nd quarter valued at about $162,000. Finally, Paragon Capital Management Ltd acquired a new stake in KBR in the 2nd quarter valued at about $172,000. Institutional investors and hedge funds own 99.74% of the company’s stock.

KBR Company Profile

KBR, Inc is a provider of professional services and technologies across the asset and program life-cycle within the government services and hydrocarbons industries. The Company operates through business segments, including Technology & Consulting (T&C), Engineering & Construction (E&C), Government Services (GS), Non-strategic Business and Other.

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Analyst Recommendations for KBR (NYSE:KBR)

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