MasTec (NYSE:MTZ) Shares Gap Down - Should You Sell?

Key Points

• MasTec shares gapped down from a previous closing price of $189.21 to open at $169.36, and last traded at $167.44, a decline of 12.1%.
• Multiple analysts have recently raised their target prices for MasTec, with JPMorgan Chase & Co. setting a new target of $214.00 and maintaining an "overweight" rating.
• The company's recent quarterly earnings showed that MasTec reported $1.49 EPS, surpassing estimates, with revenue up 19.7% year-over-year to $3.55 billion.

MasTec, Inc. (NYSE:MTZ - Get Free Report)'s stock price gapped down before the market opened on Friday . The stock had previously closed at $189.21, but opened at $169.36. MasTec shares last traded at $167.44, with a volume of 458,859 shares traded.

Analyst Upgrades and Downgrades

MTZ has been the topic of a number of research analyst reports. KeyCorp reissued an "overweight" rating and set a $196.00 price objective (up previously from $171.00) on shares of MasTec in a report on Wednesday, July 16th. The Goldman Sachs Group raised shares of MasTec from a "neutral" rating to a "buy" rating and raised their target price for the company from $156.00 to $195.00 in a research note on Friday, June 6th. Piper Sandler raised their target price on shares of MasTec from $134.00 to $175.00 and gave the company an "overweight" rating in a research note on Monday, May 5th. Jefferies Financial Group began coverage on shares of MasTec in a research note on Friday, May 16th. They issued a "buy" rating and a $188.00 target price on the stock. Finally, JPMorgan Chase & Co. raised their target price on shares of MasTec from $180.00 to $214.00 and gave the company an "overweight" rating in a research note on Tuesday, July 22nd. Two equities research analysts have rated the stock with a hold rating, fourteen have given a buy rating and three have assigned a strong buy rating to the company. According to MarketBeat, MasTec currently has an average rating of "Buy" and an average price target of $179.88.

MasTec Stock Performance

The firm has a market cap of $13.73 billion, a price-to-earnings ratio of 51.49 and a beta of 1.83. The stock has a 50 day moving average of $169.01 and a 200 day moving average of $144.98. The company has a quick ratio of 1.19, a current ratio of 1.22 and a debt-to-equity ratio of 0.70.

MasTec (NYSE:MTZ - Get Free Report) last issued its earnings results on Thursday, July 31st. The construction company reported $1.49 EPS for the quarter, topping the consensus estimate of $1.41 by $0.08. The firm had revenue of $3.55 billion during the quarter, compared to the consensus estimate of $3.40 billion. MasTec had a return on equity of 12.71% and a net margin of 2.04%. The business's quarterly revenue was up 19.7% on a year-over-year basis. During the same quarter in the previous year, the firm earned $0.96 earnings per share. As a group, analysts anticipate that MasTec, Inc. will post 3.44 EPS for the current fiscal year.

Insider Buying and Selling

In other MasTec news, COO Robert E. Apple sold 10,000 shares of the stock in a transaction that occurred on Wednesday, July 16th. The stock was sold at an average price of $175.00, for a total transaction of $1,750,000.00. Following the transaction, the chief operating officer directly owned 194,249 shares in the company, valued at approximately $33,993,575. This represents a 4.90% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, Director C Robert Campbell sold 3,000 shares of the stock in a transaction that occurred on Monday, May 12th. The stock was sold at an average price of $153.89, for a total value of $461,670.00. Following the transaction, the director owned 39,782 shares in the company, valued at $6,122,051.98. The trade was a 7.01% decrease in their ownership of the stock. The disclosure for this sale can be found here. 21.30% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On MasTec

A number of institutional investors and hedge funds have recently modified their holdings of MTZ. Jennison Associates LLC raised its position in shares of MasTec by 11.1% during the second quarter. Jennison Associates LLC now owns 81,830 shares of the construction company's stock worth $13,946,000 after purchasing an additional 8,158 shares during the period. Reliant Investment Partners LLC acquired a new position in shares of MasTec during the second quarter worth approximately $500,000. Motley Fool Asset Management LLC acquired a new position in shares of MasTec during the second quarter worth approximately $215,000. Fjarde AP Fonden Fourth Swedish National Pension Fund acquired a new position in shares of MasTec during the second quarter worth approximately $511,000. Finally, SYM FINANCIAL Corp acquired a new position in shares of MasTec during the second quarter worth approximately $234,000. 78.10% of the stock is currently owned by institutional investors.

About MasTec

MasTec, Inc, an infrastructure construction company, provides engineering, building, installation, maintenance, and upgrade services for communications, energy, utility, and other infrastructure primarily in the United States and Canada. It operates through five segments: Communications, Clean Energy and Infrastructure, Oil and Gas, Power Delivery, and Other.