Quanta Services (NYSE:PWR) Shares Down 10% - Should You Sell?

Key Points

• Quanta Services shares fell about 10% in mid-day trading, dropping from a prior close of $657 to around $591; trading volume was 58% below its average.
• Analyst opinions were mixed, but the consensus rating remains “Moderate Buy” among 33 analysts, with an average price target of $763.81.
• The company reported quarterly EPS of $6.06, beating estimates of $5.02, while revenue rose 57.4% year over year to $12.01 billion.

Quanta Services, Inc. (NYSE:PWR - Get Free Report) shares dropped 10% during mid-day trading on Wednesday. The company traded as low as $580.55 and last traded at $591.0550. 484,492 shares were traded during mid-day trading, a decline of 58% from the average session volume of 1,142,556 shares. The stock had previously closed at $657.00.

Analyst Upgrades and Downgrades

Several brokerages have recently weighed in on PWR. JPMorgan Chase & Co. cut Quanta Services from an "overweight" rating to a "neutral" rating and set a $714.00 price target for the company. in a research note on Tuesday, July 21st. KeyCorp upgraded shares of Quanta Services from a "sector weight" rating to an "overweight" rating and set a $807.00 price objective for the company in a research report on Friday, August 7th. Mizuho set a $684.00 target price on shares of Quanta Services in a report on Wednesday, October 7th. Guggenheim raised shares of Quanta Services from a "neutral" rating to a "buy" rating and set a $800.00 price target on the stock in a research report on Friday, July 31st. Finally, Wall Street Zen upgraded Quanta Services from a "hold" rating to a "buy" rating in a report on Saturday. Twenty-three analysts have rated the stock with a Buy rating, seven have given a Hold rating and three have assigned a Sell rating to the company's stock. According to MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus price target of $763.81.

Quanta Services Stock Down 12.8%

The firm's 50 day moving average price is $633.15 and its two-hundred day moving average price is $625.14. The company has a market cap of $86.30 billion, a P/E ratio of 51.89, a price-to-earnings-growth ratio of 1.62 and a beta of 1.29. The company has a debt-to-equity ratio of 0.60, a quick ratio of 1.13 and a current ratio of 1.16.

Quanta Services (NYSE:PWR - Get Free Report) last issued its earnings results on Thursday, October 29th. The construction company reported $6.06 earnings per share (EPS) for the quarter, topping the consensus estimate of $5.02 by $1.04. Quanta Services had a net margin of 4.51% and a return on equity of 23.56%. The business had revenue of $12.01 billion for the quarter, compared to analyst estimates of $11.03 billion. During the same period in the prior year, the firm earned $3.33 earnings per share. Quanta Services's revenue was up 57.4% on a year-over-year basis. Equities research analysts anticipate that Quanta Services, Inc. will post 16.25 EPS for the current fiscal year.

Quanta Services Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, October 9th. Stockholders of record on Thursday, October 1st were paid a $0.11 dividend. The ex-dividend date was Thursday, October 1st. This represents a $0.44 annualized dividend and a dividend yield of 0.1%. Quanta Services's dividend payout ratio (DPR) is currently 3.99%.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the company. Cornerstone Financial Management LLC boosted its position in Quanta Services by 70.4% during the 2nd quarter. Cornerstone Financial Management LLC now owns 46 shares of the construction company's stock valued at $33,000 after acquiring an additional 19 shares in the last quarter. Boreal Capital Management LLC purchased a new stake in Quanta Services during the 1st quarter valued at about $27,000. JNBA Financial Advisors raised its holdings in Quanta Services by 1,733.3% in the 2nd quarter. JNBA Financial Advisors now owns 55 shares of the construction company's stock worth $40,000 after acquiring an additional 52 shares during the last quarter. Joseph Group Capital Management lifted its holdings in shares of Quanta Services by 39.1% during the third quarter. Joseph Group Capital Management now owns 64 shares of the construction company's stock valued at $41,000 after purchasing an additional 18 shares in the last quarter. Finally, MADDEN SECURITIES Corp purchased a new stake in shares of Quanta Services during the 3rd quarter valued at about $48,000. 90.49% of the stock is owned by institutional investors and hedge funds.

Quanta Services Company Profile

Quanta Services, Inc is an infrastructure solutions provider headquartered in Houston, Texas. The company designs, installs, repairs, maintains and upgrades essential infrastructure for the electric power, communications, pipeline, industrial and energy industries.

Its services include electric transmission and distribution construction, substation and renewable-energy infrastructure, storm restoration, fiber-optic and wireless communications networks, natural gas and pipeline construction, and related engineering and maintenance work.

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