AECOM's (NYSE:ACM) Chief Financial Officer, Gaurav Kapoor, recently sold a significant portion of his shares in the company. According to a recent SEC filing, Kapoor sold 42,400 shares of common stock on November 6, 2024. The shares were sold at a weighted average price of $115.34, resulting in a total transaction value of approximately $4.89 million.
Following this transaction, Kapoor retains direct ownership of 31,228 shares. Additionally, he holds 51.35 shares indirectly through Merrill Lynch under the AECOM Retirement & Savings Plan.
The sale was conducted under a pre-established Rule 10b5-1 trading plan, which Kapoor adopted on March 27, 2023. This type of plan allows company insiders to set up a predetermined schedule for selling stocks, providing a way to avoid potential accusations of insider trading.
In other recent news, infrastructure consulting firm AECOM has experienced several noteworthy developments. AECOM has reported a revenue of $14.4 billion in fiscal year 2023, leading to an upward adjustment of earnings guidance for the second consecutive quarter. The company's strong financial performance has been acknowledged by various analyst firms, with Citi maintaining a Buy rating on AECOM shares and raising the price target to $128, reflecting expected double-digit earnings per share growth.
KeyBanc and Truist Securities have also raised their stock targets for AECOM, citing the firm's growth strategy, leadership changes, and potential for strong cash flow. AECOM has been selected for several significant projects, including a $4.8 billion capital delivery program with Southern Water aimed at developing infrastructure and wastewater projects. Additionally, AECOM has been chosen to provide design services for the North Houston Highway Improvement Project and the first phase of the Capital Line South Light Rail Transit Extension project in Edmonton, Alberta.
These recent developments underscore AECOM's robust growth and promising prospects. It's important to note that these are recent developments, and investors are advised to keep a close eye on the company's progress.
InvestingPro Insights
AECOM's recent stock performance and financial metrics provide additional context to CFO Gaurav Kapoor's share sale. According to InvestingPro data, AECOM's stock has shown strong momentum, with a 24.89% total return over the past three months and a 47.06% return over the past year. This robust performance aligns with the company's solid financial fundamentals.
InvestingPro Tips highlight that AECOM has raised its dividend for three consecutive years, with a current dividend yield of 0.77%. The company's revenue growth stands at 13.43% for the last twelve months as of Q3 2024, indicating steady expansion. Moreover, AECOM's net income is expected to grow this year, which could potentially support further stock price appreciation.
Despite the positive outlook, it's worth noting that AECOM is trading at a high P/E ratio of 59.28, which may suggest the stock is relatively expensive compared to its earnings. However, when adjusted for the last twelve months as of Q3 2024, the P/E ratio drops to 25.73, which is more moderate.
For investors seeking a deeper understanding of AECOM's valuation and growth prospects, InvestingPro offers 11 additional tips that could provide valuable insights into the company's financial health and market position.
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