Carderock Capital Management Inc. Decreases Position in Quanta Services, Inc. $PWR

Key Points

• Carderock Capital Management cut its Quanta Services position by 14.2% in the second quarter, selling 3,248 shares and retaining 19,621 shares valued at approximately $14.1 million. Institutional investors and hedge funds collectively own 90.49% of the company.
• Quanta Services reported a strong quarter, with EPS of $4.24 versus the $3.31 consensus and revenue of $9.56 billion versus $8.61 billion expected; revenue increased 41.1% year over year.
• Analyst sentiment remains broadly favorable, with a “Moderate Buy” consensus and an average price target of $758.96, while Quanta authorized a $1 billion share-repurchase program and priced $2 billion in senior notes to support corporate purposes.

Carderock Capital Management Inc. lowered its position in Quanta Services, Inc. (NYSE:PWR - Free Report) by 14.2% in the second quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 19,621 shares of the construction company's stock after selling 3,248 shares during the period. Quanta Services accounts for 3.1% of Carderock Capital Management Inc.'s portfolio, making the stock its 8th largest holding. Carderock Capital Management Inc.'s holdings in Quanta Services were worth $14,128,000 at the end of the most recent quarter.

Other institutional investors and hedge funds have also modified their holdings of the company. Bartlett & CO. Wealth Management LLC increased its holdings in Quanta Services by 2.6% during the 1st quarter. Bartlett & CO. Wealth Management LLC now owns 513 shares of the construction company's stock valued at $282,000 after purchasing an additional 13 shares in the last quarter. Pincus Capital Management LP boosted its stake in Quanta Services by 0.4% in the first quarter. Pincus Capital Management LP now owns 3,690 shares of the construction company's stock worth $2,026,000 after purchasing an additional 15 shares in the last quarter. SouthState Bank Corp grew its holdings in shares of Quanta Services by 23.5% during the first quarter. SouthState Bank Corp now owns 84 shares of the construction company's stock worth $46,000 after purchasing an additional 16 shares during the last quarter. Lewis Asset Management LLC increased its stake in shares of Quanta Services by 2.5% in the first quarter. Lewis Asset Management LLC now owns 692 shares of the construction company's stock valued at $380,000 after buying an additional 17 shares in the last quarter. Finally, Stiles Financial Services Inc raised its holdings in shares of Quanta Services by 1.8% in the first quarter. Stiles Financial Services Inc now owns 987 shares of the construction company's stock valued at $542,000 after buying an additional 17 shares during the last quarter. 90.49% of the stock is owned by institutional investors and hedge funds.

Key Stories Impacting Quanta Services

Here are the key news stories impacting Quanta Services this week:

• Positive Sentiment: Truist reaffirmed its “buy” rating and raised its price target to $976 from $940, signaling continued confidence in Quanta’s long-term growth prospects. Benzinga
• Positive Sentiment: Mizuho increased its price target to $741 from $659. Although the firm maintained a “neutral” rating, the higher target reflects improved expectations for the infrastructure-services contractor. The Fly
• Positive Sentiment: Guggenheim upgraded Quanta Services, adding another favorable analyst signal for the stock. Quanta Services upgraded at Guggenheim
• Positive Sentiment: The company’s latest quarterly results were strong, with earnings and revenue substantially exceeding consensus estimates and revenue rising 41.1% year over year. This supports the investment case tied to demand for power, utility and infrastructure construction.
• Neutral Sentiment: Quanta priced $2 billion of senior notes: $500 million due in 2029 at 4.850%, $750 million due in 2033 at 5.300% and $750 million due in 2036 at 5.550%. Proceeds could support expansion and corporate purposes, with closing expected August 6. Quanta Services Announces Pricing of Senior Notes Offering
• Negative Sentiment: The debt issuance increases Quanta’s interest obligations and leverage, which could weigh on the stock if borrowing costs remain high or the new capital does not generate sufficient returns. The impact is partly tempered by the company’s strong earnings outlook.

Wall Street Analysts Forecast Growth

Several research firms have recently commented on PWR. Zacks Research cut shares of Quanta Services from a "strong-buy" rating to a "hold" rating in a research note on Monday, July 6th. Raymond James Financial assumed coverage on Quanta Services in a research report on Friday. They issued an "outperform" rating on the stock. B. Riley Financial reaffirmed a "neutral" rating on shares of Quanta Services in a research note on Friday, May 1st. JPMorgan Chase & Co. reiterated a "neutral" rating and issued a $714.00 price objective on shares of Quanta Services in a research report on Tuesday, July 21st. Finally, Stifel Nicolaus set a $784.00 target price on shares of Quanta Services in a research report on Friday, May 1st. Nineteen investment analysts have rated the stock with a Buy rating, nine have issued a Hold rating and three have assigned a Sell rating to the stock. Based on data from MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus target price of $758.96.

Quanta Services Stock Up 1.9%

Quanta Services stock opened at $693.37 on Wednesday. The firm has a market capitalization of $104.24 billion, a price-to-earnings ratio of 79.42, a PEG ratio of 2.68 and a beta of 1.23. The company's 50 day simple moving average is $678.34 and its 200 day simple moving average is $616.97. The company has a debt-to-equity ratio of 0.56, a current ratio of 1.10 and a quick ratio of 1.05. Quanta Services, Inc. has a fifty-two week low of $363.01 and a fifty-two week high of $788.75.

Quanta Services (NYSE:PWR - Get Free Report) last issued its earnings results on Thursday, July 30th. The construction company reported $4.24 EPS for the quarter, beating the consensus estimate of $3.31 by $0.93. The firm had revenue of $9.56 billion during the quarter, compared to the consensus estimate of $8.61 billion. Quanta Services had a net margin of 4.03% and a return on equity of 20.55%. The business's quarterly revenue was up 41.1% on a year-over-year basis. During the same quarter in the prior year, the firm earned $2.48 earnings per share. Quanta Services has set its FY 2026 guidance at 16.450-16.950 EPS. As a group, sell-side analysts anticipate that Quanta Services, Inc. will post 12.8 EPS for the current year.

Quanta Services announced that its Board of Directors has initiated a stock repurchase program on Friday, May 22nd that allows the company to repurchase $1.00 billion in shares. This repurchase authorization allows the construction company to purchase up to 0.9% of its stock through open market purchases. Stock repurchase programs are typically a sign that the company's board of directors believes its shares are undervalued.

Quanta Services Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Monday, July 13th. Investors of record on Wednesday, July 1st were paid a dividend of $0.11 per share. This represents a $0.44 annualized dividend and a yield of 0.1%. The ex-dividend date of this dividend was Wednesday, July 1st. Quanta Services's dividend payout ratio (DPR) is presently 5.04%.

Quanta Services Profile

Quanta Services, Inc is a leading specialty contractor that provides comprehensive infrastructure solutions for the electric power, pipeline and energy, and communications markets. Headquartered in Houston, Texas, the company delivers engineering, procurement, construction, installation, maintenance and repair services that support the development, modernization and ongoing operation of critical energy and communications networks.

In the electric power sector, Quanta works on transmission and distribution systems, substation construction and grid modernization projects that include integration of renewable generation and energy storage.

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