Quanta Services (NYSE:PWR) Downgraded by Wall Street Zen to "Hold"

Key Points

• Wall Street Zen downgraded Quanta Services to “Hold” from “Buy,” adding to recent cautious calls from Morgan Stanley, Weiss Ratings and BTIG Research. Despite this, analysts maintain a “Moderate Buy” consensus with a $767.72 target price.
• Quanta Services reported strong quarterly results, with EPS of $4.24 versus the $3.31 estimate and revenue of $9.56 billion, up 41.1% year over year.
• The company authorized a $1 billion share repurchase program, while institutional investors hold approximately 90.49% of its outstanding shares.

Quanta Services (NYSE:PWR - Get Free Report) was downgraded by equities research analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a research report issued to clients and investors on Saturday, Wall Street Zen reports.

PWR has been the subject of a number of other reports. Morgan Stanley downgraded Quanta Services to an "underweight" rating in a research note on Monday, August 3rd. Sanford C. Bernstein reiterated a "market perform" rating and set a $748.00 price target on shares of Quanta Services in a research report on Friday, July 31st. Cantor Fitzgerald started coverage on Quanta Services in a report on Friday, July 31st. They issued an "outperform" rating on the stock. Weiss Ratings downgraded Quanta Services from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Friday, August 21st. Finally, BTIG Research lowered Quanta Services to a "hold" rating in a research report on Friday, July 31st. Two research analysts have rated the stock with a Strong Buy rating, twenty have assigned a Buy rating, eight have given a Hold rating and three have assigned a Sell rating to the company. According to data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $767.72.

Quanta Services Stock Up 5.1%

Shares of NYSE:PWR opened at $649.99 on Friday. The stock has a market capitalization of $97.72 billion, a price-to-earnings ratio of 74.46, a price-to-earnings-growth ratio of 2.03 and a beta of 1.20. Quanta Services has a 1-year low of $373.39 and a 1-year high of $788.75. The company's fifty day moving average is $645.78 and its two-hundred day moving average is $645.99. The company has a debt-to-equity ratio of 0.56, a quick ratio of 1.05 and a current ratio of 1.10.

Quanta Services (NYSE:PWR - Get Free Report) last posted its quarterly earnings results on Thursday, July 30th. The construction company reported $4.24 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $3.31 by $0.93. Quanta Services had a net margin of 4.03% and a return on equity of 20.55%. The company had revenue of $9.56 billion for the quarter, compared to the consensus estimate of $8.61 billion. During the same period last year, the firm posted $2.48 EPS. The company's revenue for the quarter was up 41.1% on a year-over-year basis. Quanta Services has set its FY 2026 guidance at 16.450-16.950 EPS. Equities analysts anticipate that Quanta Services will post 15.35 EPS for the current year.

Quanta Services announced that its board has approved a stock repurchase plan on Friday, May 22nd that allows the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization allows the construction company to repurchase up to 0.9% of its stock through open market purchases. Stock repurchase plans are often an indication that the company's board of directors believes its shares are undervalued.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the business. California State Teachers Retirement System lifted its position in Quanta Services by 73,333.1% in the second quarter. California State Teachers Retirement System now owns 163,127,222 shares of the construction company's stock worth $117,458,125,000 after purchasing an additional 162,905,078 shares during the period. Norges Bank acquired a new position in shares of Quanta Services during the 4th quarter valued at $817,285,000. Victory Capital Management Inc. increased its position in shares of Quanta Services by 35.2% during the 4th quarter. Victory Capital Management Inc. now owns 2,915,440 shares of the construction company's stock valued at $1,230,493,000 after purchasing an additional 758,862 shares during the period. Corient Private Wealth LLC raised its stake in shares of Quanta Services by 137.6% in the 4th quarter. Corient Private Wealth LLC now owns 1,151,650 shares of the construction company's stock worth $486,065,000 after buying an additional 667,050 shares in the last quarter. Finally, Sands Capital Management LLC acquired a new stake in shares of Quanta Services in the fourth quarter valued at $243,485,000. Institutional investors and hedge funds own 90.49% of the company's stock.

Quanta Services Company Profile

Quanta Services, Inc is an infrastructure solutions provider serving the electric power, communications, pipeline, industrial and renewable energy industries. The company designs, installs, repairs and maintains infrastructure used to generate, transmit and distribute electricity, as well as systems that support telecommunications, natural gas and other energy-related activities.

Its services include engineering, procurement and construction; utility and substation work; transmission and distribution projects; storm restoration; fiber-optic and wireless network deployment; pipeline construction and maintenance; and development of renewable energy and energy storage infrastructure.

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