Stantec Inc. (NYSE:STN) Receives Consensus Recommendation of "Moderate Buy" from Analysts

Key Points

• Analysts maintain a “Moderate Buy” consensus on Stantec, with five buy ratings and two holds. The average one-year price target is $175.
• Stantec slightly exceeded quarterly earnings expectations, reporting $1.16 EPS versus the $1.15 consensus, while revenue of $1.25 billion fell just short of estimates.
• The company declared a quarterly dividend of $0.245, equivalent to $0.98 annually and a 1.3% yield; institutional investors own 63.86% of outstanding shares.

Shares of Stantec Inc. (NYSE:STN - Get Free Report) TSE: STN have earned an average rating of "Moderate Buy" from the seven ratings firms that are presently covering the firm, Marketbeat reports. Two investment analysts have rated the stock with a hold rating and five have assigned a buy rating to the company. The average 1 year price objective among brokers that have updated their coverage on the stock in the last year is $175.00.

A number of analysts have commented on STN shares. ATB Cormark Capital Markets raised shares of Stantec from a "hold" rating to a "moderate buy" rating in a report on Friday, May 15th. Zacks Research downgraded Stantec from a "strong-buy" rating to a "hold" rating in a research note on Wednesday, May 13th. Weiss Ratings cut Stantec from a "hold (c)" rating to a "hold (c-)" rating in a research note on Tuesday, August 11th. Scotiabank reiterated an "outperform" rating on shares of Stantec in a report on Friday, August 14th. Finally, Canadian Imperial Bank of Commerce reissued an "outperform" rating on shares of Stantec in a research note on Friday, August 14th.

Stantec Stock Performance

Stantec stock opened at $73.55 on Friday. The company has a market cap of $8.27 billion, a PE ratio of 22.91 and a beta of 0.99. The company has a current ratio of 1.50, a quick ratio of 1.50 and a debt-to-equity ratio of 0.54. Stantec has a 1 year low of $66.26 and a 1 year high of $114.51. The company's 50-day moving average is $71.48 and its two-hundred day moving average is $79.32.

Stantec (NYSE:STN - Get Free Report) TSE: STN last issued its quarterly earnings results on Wednesday, August 12th. The business services provider reported $1.16 EPS for the quarter, topping the consensus estimate of $1.15 by $0.01. Stantec had a net margin of 5.91% and a return on equity of 19.70%. The company had revenue of $1.25 billion during the quarter, compared to analysts' expectations of $1.26 billion. Stantec has set its FY 2026 guidance at 4.370-4.490 EPS. Equities analysts anticipate that Stantec will post 4.46 earnings per share for the current year.

Stantec Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Thursday, October 15th. Investors of record on Tuesday, September 29th will be given a $0.245 dividend. This represents a $0.98 dividend on an annualized basis and a dividend yield of 1.3%. The ex-dividend date is Tuesday, September 29th. Stantec's dividend payout ratio (DPR) is currently 21.50%.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of the company. Man Group plc bought a new stake in Stantec in the second quarter valued at approximately $121,285,000. Alliancebernstein L.P. boosted its position in shares of Stantec by 82.4% during the second quarter. Alliancebernstein L.P. now owns 3,449,311 shares of the business services provider's stock worth $374,871,000 after purchasing an additional 1,558,703 shares in the last quarter. Bank of America Corp DE acquired a new position in shares of Stantec in the 2nd quarter valued at $104,075,000. The Manufacturers Life Insurance Company acquired a new position in shares of Stantec in the 2nd quarter valued at $98,396,000. Finally, Norges Bank bought a new stake in shares of Stantec in the 4th quarter valued at $124,217,000. Institutional investors own 63.86% of the company's stock.

Stantec Company Profile

Stantec is a global design and consulting firm offering professional services in engineering, architecture, and environmental sciences. The company partners with public and private clients to deliver solutions spanning infrastructure, water, energy and resources, and community development. Through an integrated approach, Stantec manages projects from initial planning and conceptual design through construction and commissioning, focusing on sustainability and innovation.

The firm's service portfolio includes civil infrastructure design, building systems engineering, environmental assessments, and project management.

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