Jacobs Solutions Inc. Receives Mixed Ratings and Price Target Updates

Shares of Jacobs Solutions Inc. (NYSE: J) have garnered an average rating of “Moderate Buy” from ten ratings firms, according to MarketBeat Ratings. Of these analysts, four have issued hold recommendations while six have suggested buying the stock. The average one-year price target for Jacobs Solutions stands at $162.00, reflecting diverse opinions on the stock’s future performance.

A series of recent brokerage reports have provided updated insights into Jacobs Solutions. On August 6, UBS Group raised its target price from $152.00 to $166.00 while maintaining a “buy” rating. Conversely, Wall Street Zen downgraded the stock from a “buy” to a “hold” rating on the same day. Additionally, KeyCorp increased its price objective from $157.00 to $170.00 and assigned an “overweight” rating. Meanwhile, Truist Financial also elevated its target from $148.00 to $163.00, issuing a “hold” rating.

Jacobs Solutions reported its latest earnings results on August 5, 2023. The company achieved earnings per share (EPS) of $1.62, surpassing the consensus estimate of $1.56 by $0.06. It recorded a return on equity of 17.13% and a net margin of 4.16%. Revenue for the quarter totaled $3.03 billion, slightly below the anticipated $3.09 billion. In comparison to the same quarter last year, the revenue marked a decline of 28.4%.

Looking ahead, Jacobs Solutions has provided guidance for fiscal year 2025, forecasting EPS between $6.000 and $6.100. Analysts predict the company will achieve an average EPS of $6.05 for the ongoing fiscal year.

Dividend and Institutional Investment Updates

The firm recently announced a quarterly dividend of $0.32 per share, which was paid on September 19, 2023. Shareholders on record as of August 22 received this dividend, representing an annualized yield of 0.8%. The dividend payout ratio stands at 31.92%.

Institutional investors have shown considerable interest in Jacobs Solutions. Several hedge funds have recently adjusted their holdings in the company. For instance, GAMMA Investing LLC increased its stake by 90.2% during the first quarter, acquiring an additional 1,082 shares to reach a total of 2,282 shares valued at approximately $276,000. Wealth Enhancement Advisory Services LLC also expanded its position by 2.8%, owning 127,215 shares valued at $15.37 million after purchasing an additional 3,451 shares.

Other notable transactions include Janney Montgomery Scott LLC, which acquired a new stake valued at $9.71 million, and Sowell Financial Services LLC, which purchased shares worth about $530,000. Currently, institutional investors hold 85.65% of the company’s stock.

Jacobs Solutions Inc. operates across several sectors, providing consulting, technical, engineering, scientific, and project delivery services to both government and private clients worldwide, including regions such as the United States, Europe, Canada, and Australia. The company is divided into segments, including Critical Mission Solutions, People & Places Solutions, Divergent Solutions, and PA Consulting.

As the landscape evolves and financial analysts continue to assess Jacobs Solutions, the company’s performance will be closely monitored by investors and industry observers alike.