Willdan Group (WLDN) | News Based Sentiment Analysis

• On August 7, 2025, Willdan Group reported a very strong second quarter, with Non-GAAP EPS reaching $1.50 – $0.79 better than expected, and net revenue hitting $95.0 million, a 31.1% year-over-year increase. This impressive performance demonstrates the company’s strong momentum, and net income surged 236% to $15.4 million.
• Adding to the positive news, Willdan’s subsidiary, E3, secured a $9.8 million contract from the California Public Utilities Commission (CPUC) on August 7, 2025, to provide technical services for its Integrated Resource Plan. This four-year contract, with an option for two additional years, provides revenue visibility and highlights E3’s expertise in the energy sector.
• Despite the strong Q2 results, insider selling occurred between August 12 and August 21, 2025, with Director Thomas Donald Brisbin selling 125,000 shares for $13.05 million, CFO Creighton K. Early selling 7,764 shares, and Director Steven A. Cohen offloading 2,500 shares. This activity led to an 8.7% stock price drop to $109.94 shortly after the CFO’s sale, raising investor concerns.
• Following the Q2 earnings announcement on August 7, 2025, Willdan’s stock jumped 12.04% in premarket trading, and on August 26, 2025, the stock price increased by an additional 5.9% after analysts revised their earnings estimates upward.
• Analyst sentiment remained positive throughout September, with Roth Capital reiterating a “Buy” rating with a price target of $103.00 on August 5, 2025, and Wedbush raising its price target to $120.00 and issuing an “Outperform” rating on August 8, 2025. Zacks Research upgraded Willdan to a “Strong-Buy” rating on August 21, 2025, and reaffirmed this on September 9, 2025, increasing the 2025 EPS estimate to $3.60 from $2.82, a 48.2% improvement year-over-year.
• Institutional investors continued to show confidence, with Nuveen LLC acquiring a new stake valued at approximately $10,313,000 in the first quarter, and Allspring Global Investments Holdings LLC increasing its stake by 77.3% during the first quarter to $6,468,000. However, Cubist Systematic Strategies LLC decreased its holdings by 32.4% during the first quarter.
• Despite positive analyst upgrades, Willdan Group’s stock experienced a nine-day losing streak, dropping 2.7% to approximately $103.78 on September 8, 2025, and trading at $95.30 on September 9, 2025, down $2.35 or 2.41% for the day. This streak resulted in an 18.27% decrease over nine days, the longest since September 2022.

The Investment Story: September presented a mixed bag for Willdan, with continued positive analyst sentiment and institutional investment offset by a concerning nine-day losing streak despite upgrades, highlighting a disconnect between analyst expectations and market reaction.

What It Means for Investors: The conflicting signals – positive revisions versus a falling stock price – suggest investors should carefully monitor market sentiment and the reasons behind the recent sell-off. While the long-term outlook appears positive based on analyst targets, short-term volatility is likely.

Looking Ahead: Investors should watch for any explanation from the company regarding the recent stock decline, as well as continued execution on the CPUC contract and further analyst updates. The company’s ability to regain investor confidence will be crucial.

The Bottom Line: Willdan Group remains a company with strong fundamentals and positive analyst backing, but the recent stock performance introduces a degree of caution. Investors should closely monitor the situation and assess whether the market’s concerns are justified or represent a temporary overreaction.