Quanta Services (NYSE:PWR) Shares Gap Up - Should You Buy?

Key Points

• Quanta Services shares opened sharply higher, rising from a previous close of $578.83 to $600 before trading near $590.91.
• Analyst sentiment is broadly positive: 23 analysts rate the stock a Buy, with a consensus “Moderate Buy” rating and an average price target of $761.84. Truist raised its target to $960, while Goldman Sachs and Cantor Fitzgerald set targets of $781 and $862, respectively.
• The company reported strong quarterly results, with EPS of $4.24 versus a $3.31 consensus and revenue of $9.56 billion, up 41.1% year over year. Quanta also pays a $0.11 quarterly dividend, though its annualized yield is only 0.1%.

Shares of Quanta Services, Inc. (NYSE:PWR - Get Free Report) gapped up prior to trading on Wednesday. The stock had previously closed at $578.83, but opened at $600.00. Quanta Services shares last traded at $590.9060, with a volume of 353,424 shares traded.

Analyst Ratings Changes

Several research firms recently issued reports on PWR. The Goldman Sachs Group set a $781.00 price objective on Quanta Services in a research note on Thursday, October 22nd. Truist Financial raised their price target on Quanta Services from $945.00 to $960.00 and gave the company a "buy" rating in a report on Tuesday. Weiss Ratings upgraded Quanta Services from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Tuesday, October 13th. UBS Group reissued a "buy" rating on shares of Quanta Services in a report on Monday, August 17th. Finally, Cantor Fitzgerald restated an "overweight" rating and issued a $862.00 price objective on shares of Quanta Services in a research report on Monday, October 5th. Twenty-three investment analysts have rated the stock with a Buy rating, seven have issued a Hold rating and three have given a Sell rating to the stock. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus price target of $761.84.

Quanta Services Price Performance

The company has a 50 day simple moving average of $636.29 and a 200-day simple moving average of $620.22. The stock has a market cap of $90.21 billion, a P/E ratio of 68.82 and a beta of 1.27.

Quanta Services (NYSE:PWR - Get Free Report) last announced its quarterly earnings data 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 for the quarter, compared to the consensus estimate of $8.61 billion. Quanta Services's revenue for the quarter was up 41.1% compared to the same quarter last year. During the same quarter last year, the company posted $2.48 earnings per share. Quanta Services has set its FY 2026 guidance at 16.450-16.950 EPS. As a group, research analysts expect that Quanta Services, Inc. will post 15.37 earnings per share for the current year.

Quanta Services Announces Dividend

The firm also recently disclosed 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 of this dividend was Thursday, October 1st. This represents a $0.44 dividend on an annualized basis and a dividend yield of 0.1%. Quanta Services's dividend payout ratio is 5.04%.

Hedge Funds Weigh In On Quanta Services

Several institutional investors and hedge funds have recently made changes to their positions in the business. Cetera Investment Advisers raised its holdings in shares of Quanta Services by 5.8% during the first quarter. Cetera Investment Advisers now owns 74,134 shares of the construction company's stock valued at $40,701,000 after purchasing an additional 4,087 shares during the last quarter. State Street Corp boosted its holdings in Quanta Services by 4.7% in the second quarter. State Street Corp now owns 6,581,807 shares of the construction company's stock worth $4,739,164,000 after purchasing an additional 296,893 shares during the last quarter. WINTON GROUP Ltd bought a new stake in Quanta Services in the 2nd quarter worth approximately $1,066,000. Envestnet Asset Management Inc. lifted its holdings in shares of Quanta Services by 11.9% during the 2nd quarter. Envestnet Asset Management Inc. now owns 225,059 shares of the construction company's stock valued at $162,051,000 after buying an additional 23,850 shares during the period. Finally, Waverly Advisors LLC lifted its holdings in shares of Quanta Services by 3,275.5% during the 2nd quarter. Waverly Advisors LLC now owns 62,953 shares of the construction company's stock valued at $45,329,000 after buying an additional 61,088 shares during the period. Institutional investors own 90.49% of the company's stock.

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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