Stantec (TSE:STN) Reaches New 1-Year Low - Should You Sell?

Key Points

• Stantec shares fell to a new 52-week low of C$93.15, below its 50-day and 200-day moving averages, despite the company’s C$10.67 billion market capitalization and solid liquidity metrics.
• Analysts remain broadly optimistic: eleven analysts rate the stock Buy, with a consensus target price of C$143.00—well above its recent trading level.
• Stantec reported quarterly EPS of C$1.61 on C$2.23 billion in revenue and announced a quarterly dividend of $0.245, equal to a 1.0% annualized yield. Two directors also recently purchased shares, increasing their holdings.

Stantec Inc. (TSE:STN - Get Free Report) NYSE: STN hit a new 52-week low during trading on Wednesday. The company traded as low as C$93.15 and last traded at C$93.98, with a volume of 212401 shares changing hands. The stock had previously closed at C$96.09.

Wall Street Analyst Weigh In

STN has been the subject of a number of research reports. Desjardins set a C$169.00 target price on Stantec and gave the stock a "buy" rating in a report on Friday, August 14th. Canadian Imperial Bank of Commerce lowered their price target on shares of Stantec from C$160.00 to C$137.00 and set an "outperformer" rating on the stock in a research report on Wednesday, July 8th. Scotia dropped their price objective on shares of Stantec from C$133.00 to C$129.00 and set a "sector outperform" rating for the company in a research note on Friday, August 14th. Royal Bank Of Canada cut their price objective on shares of Stantec from C$148.00 to C$146.00 and set an "outperform" rating for the company in a report on Friday, August 14th. Finally, ATB Cormark Capital Markets increased their target price on shares of Stantec from C$130.00 to C$133.00 and gave the stock an "outperform" rating in a research report on Friday, August 14th. Eleven research analysts have rated the stock with a Buy rating, Based on data from MarketBeat.com, the company presently has an average rating of "Buy" and a consensus target price of C$143.00.

Stantec Price Performance

The company has a fifty day simple moving average of C$100.05 and a two-hundred day simple moving average of C$105.82. The stock has a market capitalization of C$10.67 billion, a price-to-earnings ratio of 21.43, a PEG ratio of 1.46 and a beta of 0.78. The company has a debt-to-equity ratio of 80.98, a quick ratio of 1.46 and a current ratio of 1.50.

Stantec (TSE:STN - Get Free Report) NYSE: STN last issued its quarterly earnings results on Wednesday, August 12th. The company reported C$1.61 EPS for the quarter. The company had revenue of C$2.23 billion for the quarter. Stantec had a return on equity of 15.26% and a net margin of 6.23%.

Stantec Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Thursday, October 15th. Shareholders of record on Thursday, October 15th will be issued a $0.2450 dividend. This represents a $0.98 annualized dividend and a yield of 1.0%. The ex-dividend date of this dividend is Tuesday, September 29th. Stantec's dividend payout ratio (DPR) is currently 21.22%.

Insider Activity at Stantec

In other news, Director Susan Reisbord acquired 2,068 shares of the firm's stock in a transaction that occurred on Monday, August 24th. The shares were acquired at an average cost of C$102.59 per share, with a total value of C$212,156.12. Following the completion of the purchase, the director directly owned 8,253 shares of the company's stock, valued at C$846,675.27. The trade was a 33.44% increase in their position. Also, Director Shelley Ann Marie Brown acquired 393 shares of the stock in a transaction on Thursday, October 1st. The shares were purchased at an average price of C$95.91 per share, with a total value of C$37,692.63. Following the completion of the transaction, the director owned 6,277 shares of the company's stock, valued at approximately C$602,027.07. This represents a 6.68% increase in their ownership of the stock. 0.27% of the stock is currently owned by insiders.

Stantec Company Profile

Stantec empowers clients, people, and communities to rise to the world's greatest challenges at a time when the world faces more unprecedented concerns than ever before. We are a global leader in sustainable engineering, architecture, and environmental consulting. Our professionals deliver the expertise, technology, and innovation communities need to manage aging infrastructure, demographic and population changes, the energy transition, and more. Today's communities transcend geographic borders.

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