Franklin Resources Inc. Grows Stake in Quanta Services, Inc. $PWR

Key Points

• Franklin Resources increased its stake in Quanta Services by 15.7% in the fourth quarter, ending with 591,926 shares valued at about $249.8 million.
• Quanta Services reported strong quarterly results, with EPS of $2.68 beating estimates and revenue of $7.87 billion topping forecasts, while revenue rose 26.3% year over year.
• The company’s board authorized a $1 billion share buyback, and analysts remain generally positive, with a consensus Moderate Buy rating and average target price of $733.87.

Franklin Resources Inc. increased its holdings in shares of Quanta Services, Inc. (NYSE:PWR - Free Report) by 15.7% in the 4th quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 591,926 shares of the construction company's stock after purchasing an additional 80,476 shares during the quarter. Franklin Resources Inc. owned approximately 0.40% of Quanta Services worth $249,828,000 at the end of the most recent reporting period.

Several other institutional investors have also recently made changes to their positions in PWR. Brighton Jones LLC purchased a new stake in shares of Quanta Services during the fourth quarter worth about $298,000. Woodline Partners LP grew its position in shares of Quanta Services by 40.7% during the first quarter. Woodline Partners LP now owns 12,471 shares of the construction company's stock worth $3,170,000 after purchasing an additional 3,606 shares in the last quarter. Arrowstreet Capital Limited Partnership purchased a new stake in shares of Quanta Services during the second quarter worth about $4,632,000. Marshall Wace LLP purchased a new stake in shares of Quanta Services during the second quarter worth about $996,000. Finally, StoneX Group Inc. purchased a new stake in shares of Quanta Services during the second quarter worth about $204,000. Hedge funds and other institutional investors own 90.49% of the company's stock.

Insider Activity at Quanta Services

In other news, CEO Earl C. Jr. Austin sold 25,992 shares of the firm's stock in a transaction that occurred on Tuesday, May 5th. The stock was sold at an average price of $770.71, for a total value of $20,032,294.32. Following the completion of the sale, the chief executive officer directly owned 16,508 shares of the company's stock, valued at $12,722,880.68. This trade represents a 61.16% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CAO Paul Nobel sold 4,000 shares of the firm's stock in a transaction that occurred on Monday, May 4th. The shares were sold at an average price of $756.98, for a total value of $3,027,920.00. Following the completion of the sale, the chief accounting officer directly owned 8,080 shares of the company's stock, valued at $6,116,398.40. The trade was a 33.11% 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 over the last ninety days. Corporate insiders own 0.60% of the company's stock.

Quanta Services Price Performance

NYSE:PWR opened at $691.41 on Wednesday. The firm has a market capitalization of $103.75 billion, a price-to-earnings ratio of 94.84, a PEG ratio of 2.73 and a beta of 1.20. Quanta Services, Inc. has a 1 year low of $341.93 and a 1 year high of $788.75. The business has a 50 day simple moving average of $667.21 and a 200-day simple moving average of $552.14. The company has a debt-to-equity ratio of 0.57, a current ratio of 1.14 and a quick ratio of 1.09.

Quanta Services (NYSE:PWR - Get Free Report) last posted its quarterly earnings data on Thursday, April 30th. The construction company reported $2.68 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.04 by $0.64. The business had revenue of $7.87 billion during the quarter, compared to analyst estimates of $7 billion. Quanta Services had a return on equity of 18.64% and a net margin of 3.67%.The company's revenue for the quarter was up 26.3% on a year-over-year basis. During the same period last year, the company earned $1.78 EPS. Quanta Services has set its FY 2026 guidance at 13.550-14.250 EPS. Equities analysts forecast that Quanta Services, Inc. will post 12.81 EPS for the current year.

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

Quanta Services Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Monday, July 13th. Stockholders of record on Wednesday, July 1st will be paid a $0.11 dividend. This represents a $0.44 annualized dividend and a dividend yield of 0.1%. The ex-dividend date of this dividend is Wednesday, July 1st. Quanta Services's dividend payout ratio (DPR) is presently 6.04%.

Analyst Ratings Changes

Several research firms have weighed in on PWR. JPMorgan Chase & Co. raised their price target on Quanta Services from $627.00 to $805.00 and gave the company an "overweight" rating in a report on Friday, May 1st. Bank of America raised their price target on Quanta Services from $500.00 to $610.00 and gave the company a "buy" rating in a report on Friday, February 20th. Evercore raised their price target on Quanta Services from $635.00 to $800.00 and gave the company an "outperform" rating in a report on Friday, May 1st. B. Riley Financial restated a "neutral" rating on shares of Quanta Services in a report on Friday, May 1st. Finally, Zacks Research upgraded Quanta Services from a "hold" rating to a "strong-buy" rating in a report on Friday, May 8th. One equities research analyst has rated the stock with a Strong Buy rating, nineteen have issued a Buy rating and seven have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $733.87.

About Quanta Services

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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