What Happened?
Shares of electrical construction and infrastructure services provider MYR Group (NASDAQ: MYRG) fell 2.5% in the afternoon session after Keybanc downgraded the stock from "Overweight" to "Sector Weight.". The investment bank noted that the electrical contractor's shares had approached its price target, suggesting the stock was now considered fairly valued. This move followed a remarkable run for the stock, which had gained over 102% in the previous year. Despite the rating change, Keybanc acknowledged the company's significant progress, highlighting that MYR Group had successfully overcome project execution challenges from about a year ago. The firm expressed a positive view of the company's operational improvements but determined the current share price adequately reflected its business performance and outlook.
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 20 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 previous big move we wrote about was 5 days ago when the stock gained 3% on the news that a key inflation data aligned with forecasts, bolstering hopes for continued interest rate cuts from the Federal Reserve. The Personal Consumption Expenditures (PCE) price index, the central bank's preferred gauge of inflation, showed a slight year-over-year increase in August but did not surprise economists. This report was met with relief on Wall Street, as it suggests inflationary pressures remain contained, giving the Federal Reserve more leeway to continue its monetary easing policy. Investors interpreted the news as a positive sign that the Fed can support the economy without risking runaway inflation. The positive sentiment helped the major indices claw back some of the losses from a recent three-day slide, with stocks rising across various sectors.
MYR Group is up 37.3% since the beginning of the year, and at $203.09 per share, it is trading close to its 52-week high of $208.03 from September 2025. Investors who bought $1,000 worth of MYR Group’s shares 5 years ago would now be looking at an investment worth $5,467.
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