Encompass Capital Advisors LLC Buys New Shares in Quanta Services, Inc. $PWR

Key Points

• Encompass Capital Advisors purchased 60,000 shares of Quanta Services valued at approximately $32.9 million, while institutional investors collectively own 90.49% of the company.
• Analysts maintain a broadly positive outlook, with a “Moderate Buy” consensus rating and an average price target of $745.55; recent targets range as high as $872.
• Quanta Services reported strong quarterly results, including $2.68 EPS and $7.87 billion in revenue, up 26.3% year over year. The company also authorized a $1 billion share-repurchase program, equivalent to up to 0.9% of outstanding shares.

Encompass Capital Advisors LLC bought a new position in shares of Quanta Services, Inc. (NYSE:PWR - Free Report) in the first quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm bought 60,000 shares of the construction company's stock, valued at approximately $32,941,000. Quanta Services makes up about 1.0% of Encompass Capital Advisors LLC's holdings, making the stock its 27th largest holding.

Other institutional investors also recently modified their holdings of the company. Brighton Jones LLC acquired a new position in shares of Quanta Services in the 4th quarter worth $298,000. Woodline Partners LP boosted its position in shares of Quanta Services by 40.7% in the 1st quarter. Woodline Partners LP now owns 12,471 shares of the construction company's stock valued at $3,170,000 after purchasing an additional 3,606 shares during the period. Arrowstreet Capital Limited Partnership purchased a new position in Quanta Services in the 2nd quarter worth about $4,632,000. Marshall Wace LLP acquired a new stake in Quanta Services during the 2nd quarter worth about $996,000. Finally, StoneX Group Inc. acquired a new stake in Quanta Services during the 2nd quarter worth about $204,000. Institutional investors own 90.49% of the company's stock.

Wall Street Analyst Weigh In

Several equities analysts have commented on the stock. BNP Paribas Exane initiated coverage on shares of Quanta Services in a research report on Tuesday, April 14th. They set a "neutral" rating on the stock. Oppenheimer raised Quanta Services from a "market perform" rating to an "outperform" rating and set a $800.00 price target for the company in a research report on Thursday, May 28th. Evercore increased their price objective on Quanta Services from $635.00 to $800.00 and gave the company an "outperform" rating in a report on Friday, May 1st. CICC Research assumed coverage on Quanta Services in a research note on Thursday, May 21st. They issued an "outperform" rating and a $872.00 price objective on the stock. Finally, Mizuho set a $645.00 target price on Quanta Services in a report on Monday, July 20th. Seventeen research analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the stock. According to data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $745.55.

Insider Buying and Selling

In other news, CAO Paul Nobel sold 4,000 shares of Quanta Services stock in a transaction that occurred on Monday, May 4th. The stock was sold at an average price of $756.98, for a total transaction of $3,027,920.00. Following the sale, the chief accounting officer owned 8,080 shares of the company's stock, valued at approximately $6,116,398.40. This trade represents a 33.11% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO Earl C. Jr. Austin sold 25,992 shares of the business's stock in a transaction that occurred on Tuesday, May 5th. The shares were sold at an average price of $770.71, for a total value of $20,032,294.32. Following the sale, the chief executive officer owned 16,508 shares in the company, valued at approximately $12,722,880.68. This represents a 61.16% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 159,992 shares of company stock valued at $123,244,714 in the last quarter. Corporate insiders own 0.60% of the company's stock.

Quanta Services Stock Performance

NYSE PWR opened at $619.98 on Tuesday. The company's fifty day moving average is $687.90 and its two-hundred day moving average is $608.07. Quanta Services, Inc. has a 52-week low of $363.01 and a 52-week high of $788.75. The company has a debt-to-equity ratio of 0.57, a current ratio of 1.14 and a quick ratio of 1.09. The firm has a market capitalization of $93.03 billion, a price-to-earnings ratio of 85.05, a P/E/G ratio of 2.46 and a beta of 1.21.

Quanta Services (NYSE:PWR - Get Free Report) last announced its quarterly earnings data on Thursday, April 30th. The construction company reported $2.68 EPS for the quarter, beating analysts' consensus estimates of $2.04 by $0.64. Quanta Services had a net margin of 3.67% and a return on equity of 18.64%. The business had revenue of $7.87 billion during the quarter, compared to analyst estimates of $7 billion. During the same quarter in the prior year, the business earned $1.78 earnings per share. The firm's revenue for the quarter was up 26.3% on a year-over-year basis. Quanta Services has set its FY 2026 guidance at 13.550-14.250 EPS. Equities research analysts forecast that Quanta Services, Inc. will post 12.8 EPS for the current year.

Quanta Services Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Monday, July 13th. Shareholders of record on Wednesday, July 1st were issued a $0.11 dividend. The ex-dividend date of this dividend was Wednesday, July 1st. This represents a $0.44 annualized dividend and a yield of 0.1%. Quanta Services's dividend payout ratio is 6.04%.

Quanta Services declared that its Board of Directors has initiated a share repurchase plan on Friday, May 22nd that allows the company to repurchase $1.00 billion in shares. This repurchase authorization allows the construction company to reacquire up to 0.9% of its stock through open market purchases. Stock repurchase plans are generally an indication that the company's board believes its stock is undervalued.

Quanta Services Company 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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