On November 14, Aristotle Capital Boston disclosed a sale of 88,910 shares of Dycom Industries (DY 1.73%), contributing to a reduction in its position by an estimated $14.6 million.
What Happened
According to a Securities and Exchange Commission (SEC) filing dated November 14, Aristotle Capital Boston sold 88,910 shares of Dycom Industries during the third quarter. The adjustment brought its stake to 150,752 shares, valued at $44 million at quarter-end, and shifted the position to 2.3% of the fund’s reportable U.S. equity assets.
What Else to Know
Top holdings after the filing:
- NASDAQ:HURN: $54 million (2.8% of AUM)
- NASDAQ:ACIW: $44.6 million (2.3% of AUM)
- NYSE:DY: $44 million (2.3% of AUM)
- NASDAQ:HQY: $41.3 million (2.1% of AUM)
- NASDAQ:MTSI: $40.6 million (2.1% of AUM)
As of Monday, DY shares were priced at $351.19, up a staggering 95% over the past year and vastly outperforming the S&P 500, which is up 13% in the same period.
Company Overview
| Metric | Value |
|---|---|
| Revenue (TTM) | $5.2 billion |
| Net Income (TTM) | $297.6 million |
| Price (as of Monday) | $351.19 |
| One-Year Price Change | 96% |
Company Snapshot
- Dycom Industries provides specialty contracting services, including program management, engineering, construction, and maintenance of fiber optic, copper, and coaxial cable systems, as well as tower and utility infrastructure.
- The company generates revenue primarily through large-scale projects for telecommunications, cable, and utility companies, offering end-to-end solutions from network design to installation and ongoing maintenance.
- Its main customers are major telecommunications providers, cable system operators, and utility companies across the United States.
Dycom Industries operates at scale as a leading specialty contractor for critical communications and utility infrastructure in the United States. The company leverages deep technical expertise and a comprehensive service portfolio to support the expansion and maintenance of high-speed networks for top-tier clients. Dycom's integrated approach and focus on essential infrastructure position it as a key partner in the ongoing buildout of advanced telecommunications and utility systems.
Foolish Take
Trimming exposure after a sharp rally is often less about lost conviction and more about risk management when expectations get stretched. Dycom’s fundamentals remain strong, but the stock’s surge has pulled future execution into today’s price.
Operationally, Dycom is firing on all cylinders. In its latest quarter, contract revenue climbed 14.1% year over year to a record $1.45 billion, while adjusted EBITDA rose 28.5% to $219.4 million, lifting margins to 15.1% from 13.4% a year ago. Very notably, backlog expanded to an all-time high of $8.2 billion, underscoring durable demand tied to fiber deployment, data center expansion, and federally funded broadband projects.
That strength helps explain why Dycom remains a top holding even after the reduction, sitting alongside other infrastructure- and services-heavy names in the portfolio. Still, with shares up roughly 95% over the past year and trading near record levels, incremental upside now depends on sustained execution rather than multiple expansion. For patient investors, Dycom remains a high-quality compounder tied to long-cycle digital infrastructure spending. Basically, the business momentum is real, but after a run like this, discipline matters as much as conviction.
Glossary
Stake: The ownership interest or investment held by an individual or institution in a company.
Assets Under Management (AUM): The total market value of investments managed by a fund or investment firm.
13F Reportable Assets: U.S. equity securities that institutional investment managers must disclose quarterly to the SEC on Form 13F.
Partial Sale: Selling only a portion of an investment position, rather than the entire holding.
Position: The amount of a particular security or asset held in a portfolio.
Outperforming: Achieving a higher return than a specific benchmark or index over a given period.
Specialty Contracting Services: Professional services focused on specialized construction or infrastructure projects, often requiring technical expertise.
Program Management: Coordinating and overseeing multiple related projects to achieve strategic business objectives.
End-to-End Solutions: Comprehensive services covering all stages of a project, from initial planning to completion and maintenance.
Integrated Approach: Combining multiple services or processes to deliver a unified solution for clients.
TTM: The 12-month period ending with the most recent quarterly report.
