What Happened?
Shares of electrical construction and infrastructure services provider MYR Group (NASDAQ: MYRG) fell 3.1% in the morning session after Goldman Sachs downgraded the stock. The investment bank changed its rating on the electrical construction contractor from "Buy" to "Neutral." Analysts at Goldman Sachs pointed to a lack of long-term guidance from the company as a key reason for the change. The stock had experienced a significant run-up prior to the downgrade, reaching an all-time high and increasing by 68% over the past three months, which may have also factored into the bank's reassessment. While Goldman Sachs did increase its price target on the stock, the downgrade itself signaled a more cautious stance on the company's near-term prospects, prompting some investors to sell shares.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy MYR Group? Access our full analysis report here, it’s free.
What Is The Market Telling Us
MYR Group’s shares are very volatile and have had 23 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 3 months ago when the stock gained 18.9% on the news that the company reported strong first quarter 2025 results which significantly beat analysts' revenue expectations and delivered EPS above Wall Street estimates. Guidance wasn't provided, but the growing backlog, nearly 9% year-on-year, offered a clear signal of steady demand and gave investors some visibility into near-term sales stability. Zooming out, we think this was a good quarter with some key areas of upside.
MYR Group is up 26.6% since the beginning of the year, and at $187.18 per share, it is trading close to its 52-week high of $192.03 from July 2025. Investors who bought $1,000 worth of MYR Group’s shares 5 years ago would now be looking at an investment worth $5,724.
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