SOLV Energy (NASDAQ:MWH) Stock Falls 3.9% on Analyst Downgrade

Key Points

• SOLV Energy shares fell 3.9% after JPMorgan cut its price target from $43 to $34, though it maintained an overweight rating. The stock traded near $22.92, below its 50-day and 200-day moving averages.
• Analyst sentiment remains broadly positive, with 10 Buy, two Hold and one Sell rating, resulting in a “Moderate Buy” consensus and an average price target of $38.55.
• Institutional interest increased, including major new positions from American Securities and Wellington Management, while SOLV Energy’s latest quarterly earnings beat estimates and revenue rose 77.4% year over year.

SOLV Energy Inc. (NASDAQ:MWH - Get Free Report) shares traded down 3.9% during mid-day trading on Tuesday after JPMorgan Chase & Co. lowered their price target on the stock from $43.00 to $34.00. JPMorgan Chase & Co. currently has an overweight rating on the stock. SOLV Energy traded as low as $22.77 and last traded at $22.9160. 842,658 shares traded hands during trading, a decline of 45% from the average daily volume of 1,529,652 shares. The stock had previously closed at $23.85.

Several other brokerages have also recently issued reports on MWH. TD Cowen boosted their price objective on shares of SOLV Energy from $32.00 to $35.00 and gave the company a "buy" rating in a research note on Tuesday, August 25th. Weiss Ratings cut shares of SOLV Energy from a "sell (d+)" rating to a "sell (d)" rating in a research note on Friday, September 25th. Zacks Research downgraded shares of SOLV Energy from a "strong-buy" rating to a "hold" rating in a report on Tuesday, September 8th. Canadian Imperial Bank of Commerce reaffirmed an "outperform" rating and issued a $42.00 target price on shares of SOLV Energy in a report on Friday, August 14th. Finally, KeyCorp dropped their price target on shares of SOLV Energy from $43.00 to $35.00 and set an "overweight" rating on the stock in a research note on Thursday, October 15th. Ten research analysts have rated the stock with a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the company presently has an average rating of "Moderate Buy" and an average price target of $38.55.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of the business. American Securities LLC purchased a new position in shares of SOLV Energy in the 2nd quarter valued at about $2,823,440,000. Ninety One UK Ltd boosted its holdings in SOLV Energy by 422.7% during the third quarter. Ninety One UK Ltd now owns 1,532,243 shares of the company's stock worth $36,804,000 after buying an additional 1,239,122 shares in the last quarter. Neumeier Poma Investment Counsel LLC acquired a new position in SOLV Energy during the second quarter worth about $18,320,262. Ninety One North America Inc. grew its position in SOLV Energy by 317.4% during the third quarter. Ninety One North America Inc. now owns 283,807 shares of the company's stock worth $6,817,000 after buying an additional 215,812 shares during the period. Finally, Wellington Management Group LLP purchased a new position in SOLV Energy in the second quarter valued at about $4,852,000.

SOLV Energy Stock Performance

The stock's 50-day moving average price is $26.42 and its 200-day moving average price is $31.11. The company has a debt-to-equity ratio of 0.07, a quick ratio of 1.09 and a current ratio of 1.09. The company has a market capitalization of $4.64 billion and a price-to-earnings ratio of 76.39.

SOLV Energy (NASDAQ:MWH - Get Free Report) last released its quarterly earnings results on Thursday, August 13th. The company reported $0.30 earnings per share for the quarter, topping analysts' consensus estimates of $0.26 by $0.04. The firm had revenue of $951.24 million during the quarter. The business's revenue was up 77.4% on a year-over-year basis. As a group, equities research analysts expect that SOLV Energy Inc. will post 1.22 earnings per share for the current year.

About SOLV Energy

SOLV Energy is a renewable energy company that provides engineering, procurement and construction (EPC) services for utility-scale solar power and battery energy storage projects. Its services span project design, construction management, commissioning and related infrastructure development.

The company also provides operations and maintenance, asset management and optimization services intended to support the long-term performance and reliability of renewable energy facilities. SOLV Energy serves utility, commercial and institutional customers, primarily across the United States.

The company was previously known as Swinerton Renewable Energy and adopted the SOLV Energy name in 2021.

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