Zacks Investment Research upgraded shares of Quanta Services (NYSE:PWR) from a sell rating to a hold rating in a research report released on Monday, September 17th.
According to Zacks, “Shares of Quanta Services have underperformed the industry in past one-year time frame. Earnings estimates for 2018 and 2019 have remained unchanged over the past 30 days, limiting stock’s upside potential. Softer-than-expected margin performance of the oil and gas segment (down 350 bps in the second quarter) due to harsh weather conditions raises concern. Also, lower contribution of a larger project also added to the woes. That said, the company remains optimistic about the second half of 2018 as base business activity seasonally increases and larger pipeline projects speed up the pace. Again, its communications infrastructure services business is also anticipated to benefit from present industry trends. Quanta Services is actively pursuing opportunities with various U.S. telecom and cable MSOs. Moreover, Quanta Services is experiencing solid prospects in its electric power segment.”
A number of other research firms have also recently weighed in on PWR. B. Riley lifted their target price on shares of Quanta Services from $52.00 to $53.00 and gave the company a buy rating in a research note on Monday, August 6th. ValuEngine cut shares of Quanta Services from a hold rating to a sell rating in a research note on Wednesday, August 8th. Finally, Cfra restated a buy rating and set a $40.00 target price on shares of Quanta Services in a research note on Thursday, September 6th. One investment analyst has rated the stock with a sell rating, two have assigned a hold rating and nine have assigned a buy rating to the company’s stock. The stock presently has an average rating of Buy and an average price target of $45.80.
Shares of PWR stock traded down $0.10 during mid-day trading on Monday, reaching $31.34. 1,705,597 shares of the company’s stock traded hands, compared to its average volume of 1,396,543. Quanta Services has a 12 month low of $31.02 and a 12 month high of $40.10. The company has a debt-to-equity ratio of 0.23, a current ratio of 1.82 and a quick ratio of 1.77. The company has a market cap of $4.97 billion, a price-to-earnings ratio of 17.61, a PEG ratio of 1.65 and a beta of 0.89.
Quanta Services (NYSE:PWR) last issued its quarterly earnings data on Thursday, August 2nd. The construction company reported $0.59 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.60 by ($0.01). Quanta Services had a net margin of 3.10% and a return on equity of 7.72%. The business had revenue of $2.66 billion for the quarter, compared to the consensus estimate of $2.51 billion. During the same period in the previous year, the firm earned $0.50 EPS. The company’s revenue was up 20.7% on a year-over-year basis. Equities research analysts expect that Quanta Services will post 2.53 EPS for the current year.
Quanta Services announced that its Board of Directors has approved a stock repurchase program on Tuesday, September 4th that authorizes the company to repurchase $500.00 million in outstanding shares. This repurchase authorization authorizes the construction company to reacquire up to 9.7% of its stock through open market purchases. Stock repurchase programs are often an indication that the company’s leadership believes its shares are undervalued.
Hedge funds have recently made changes to their positions in the business. PNC Financial Services Group Inc. lifted its stake in Quanta Services by 27.6% in the 2nd quarter. PNC Financial Services Group Inc. now owns 59,354 shares of the construction company’s stock worth $1,983,000 after purchasing an additional 12,846 shares in the last quarter. Manatuck Hill Partners LLC purchased a new stake in Quanta Services in the 2nd quarter worth $501,000. Burney Co. lifted its stake in Quanta Services by 17.6% in the 2nd quarter. Burney Co. now owns 75,596 shares of the construction company’s stock worth $2,525,000 after purchasing an additional 11,314 shares in the last quarter. Canada Pension Plan Investment Board lifted its stake in Quanta Services by 58.4% in the 2nd quarter. Canada Pension Plan Investment Board now owns 200,716 shares of the construction company’s stock worth $6,704,000 after purchasing an additional 74,000 shares in the last quarter. Finally, Ramsey Quantitative Systems lifted its stake in Quanta Services by 20.2% in the 2nd quarter. Ramsey Quantitative Systems now owns 10,375 shares of the construction company’s stock worth $347,000 after purchasing an additional 1,741 shares in the last quarter. Institutional investors and hedge funds own 85.09% of the company’s stock.
About Quanta Services
Quanta Services, Inc provides specialty contracting services to the electric power, communication, and oil and gas industries in the United States, Canada, Australia, Latin America, and internationally. Its Electric Power Infrastructure Services segment provides network solutions, including the design, installation, upgrade, repair, and maintenance of electric power transmission and distribution infrastructure, and substation facilities, as well as other engineering and technical services.
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