Dycom Stock Up 95% in One Year as One Fund Trims Exposure After $1.5 Billion Quarter

Aristotle Capital Boston disclosed in an SEC filing on Nov. 14 that it sold 88,910 shares of Dycom Industries in Q3, trimming the position by roughly $14.6 million to 150,752 shares valued at about $44 million (2.3% of its reportable U.S. equity assets). Dycom shares trade near $351 and are up roughly 95% over the past year, yet Aristotle retains Dycom as a top holding alongside names such as Huron and ACI Worldwide. The company’s fundamentals underpinning the stake remain strong—TTM revenue ~$5.2 billion, recent-quarter contract revenue +14.1% y/y to $1.45 billion, adjusted EBITDA +28.5% to $219.4 million with margins rising to 15.1%, and backlog at a record $8.2 billion—reflecting durable demand from fiber and broadband projects. The sale appears to be portfolio risk-management after a sharp rally; further upside for Dycom now depends more on sustained operational execution than multiple expansion.

Analysis

Aristotle Capital Boston disclosed an 88,910-share sale of Dycom Industries in Q3, trimming the position by an estimated $14.6 million and leaving 150,752 shares valued at about $44 million, or 2.3% of the fund’s reportable U.S. equity assets. Dycom remains a top holding alongside Huron ($54m) and ACI Worldwide ($44.6m), indicating the sale was a reweighting rather than a full exit.

Dycom’s market performance and fundamentals underpin why the firm retained exposure: shares traded at $351.19 and are up roughly 95% over the past year while TTM revenue is ~$5.2 billion and net income ~$297.6 million. Operational momentum shows contract revenue up 14.1% y/y to $1.45 billion, adjusted EBITDA rising 28.5% to $219.4 million with margins expanding to 15.1%, and backlog at a record $8.2 billion.

The filing and Motley Fool commentary frame the sale as risk management after a sharp rally; further upside is now more dependent on sustained execution and backlog conversion than multiple expansion. Sentiment is mildly positive but cautious, so near-term returns will hinge on continued contract delivery and visibility into federally funded broadband projects and fiber deployment trends.

Key Decisions for Investors

• Consider taking partial profits or trimming exposure given the ~95% one-year run and an institutional manager’s reduction, Monitor Dycom’s next quarterly contract revenue, adjusted EBITDA, margin trajectory and backlog conversion as primary execution triggers for adding or holding positions, If maintaining or adding exposure, deploy capital in tranches or use downside protection because upside is now execution-dependent rather than multiple-driven, Reassess position size within infrastructure exposure and rebalance if Dycom exceeds your target concentration given recent outperformance