Sterling Infrastructure (NASDAQ:STRL) Stock Jumps 5.9% - Time to Buy?

Key Points

• Sterling Infrastructure shares rose 5.9% to about $554 during Tuesday trading, although volume was 72% below the average daily level.
• Analyst sentiment remains positive overall: six analysts rate the stock Buy and two rate it Hold, producing a “Moderate Buy” consensus and an average price target of $690.33.
• The company reported strong quarterly results, with EPS of $5.80 beating estimates by $0.79 and revenue rising 90.4% year over year to $1.17 billion. However, the stock trades at a relatively high P/E of 40.78, while its shares remain below the 200-day moving average.

Shares of Sterling Infrastructure, Inc. (NASDAQ:STRL - Get Free Report) traded up 5.9% during mid-day trading on Tuesday. The stock traded as high as $556.00 and last traded at $554.0690. Approximately 175,796 shares were traded during trading, a decline of 72% from the average daily volume of 622,560 shares. The stock had previously closed at $523.33.

Wall Street Analyst Weigh In

STRL has been the subject of a number of research reports. DA Davidson assumed coverage on Sterling Infrastructure in a report on Friday, August 21st. They set a "buy" rating and a $700.00 price objective for the company. Zacks Research downgraded Sterling Infrastructure from a "strong-buy" rating to a "hold" rating in a research report on Friday, August 7th. Wall Street Zen cut shares of Sterling Infrastructure from a "strong-buy" rating to a "buy" rating in a research note on Saturday, September 5th. KeyCorp lowered their price objective on shares of Sterling Infrastructure from $922.00 to $754.00 and set an "overweight" rating on the stock in a report on Wednesday, August 5th. Finally, Cantor Fitzgerald restated an "overweight" rating and set a $742.00 target price on shares of Sterling Infrastructure in a report on Wednesday, September 30th. Six equities research analysts have rated the stock with a Buy rating and two have given a Hold rating to the company's stock. According to data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average target price of $690.33.

Sterling Infrastructure Stock Performance

The stock has a market capitalization of $17.37 billion, a P/E ratio of 40.78, a P/E/G ratio of 1.86 and a beta of 1.86. The stock has a 50 day simple moving average of $515.66 and a two-hundred day simple moving average of $615.73. The company has a quick ratio of 1.11, a current ratio of 1.11 and a debt-to-equity ratio of 0.19.

Sterling Infrastructure (NASDAQ:STRL - Get Free Report) last announced its quarterly earnings data on Monday, August 3rd. The construction company reported $5.80 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $5.01 by $0.79. The company had revenue of $1.17 billion for the quarter, compared to analysts' expectations of $969.22 million. Sterling Infrastructure had a return on equity of 40.12% and a net margin of 12.55%.The business's quarterly revenue was up 90.4% on a year-over-year basis. Sterling Infrastructure has set its FY 2026 guidance at 19.700-20.300 EPS. On average, equities analysts forecast that Sterling Infrastructure, Inc. will post 19.1 EPS for the current fiscal year.

Institutional Investors Weigh In On Sterling Infrastructure

A number of institutional investors and hedge funds have recently modified their holdings of STRL. BlackRock Inc. acquired a new position in shares of Sterling Infrastructure in the second quarter valued at about $2,713,946,000. State Street Corp grew its position in shares of Sterling Infrastructure by 290.7% during the 2nd quarter. State Street Corp now owns 4,253,073 shares of the construction company's stock worth $3,569,859,000 after purchasing an additional 3,164,551 shares in the last quarter. Jupiter Topco LLC acquired a new position in shares of Sterling Infrastructure during the 2nd quarter worth approximately $395,056,000. First Trust Advisors LP increased its holdings in shares of Sterling Infrastructure by 27.3% during the first quarter. First Trust Advisors LP now owns 877,990 shares of the construction company's stock worth $357,579,000 after purchasing an additional 188,048 shares during the period. Finally, Bank of New York Mellon Corp acquired a new stake in shares of Sterling Infrastructure in the second quarter valued at approximately $144,725,000. 80.95% of the stock is owned by institutional investors.

About Sterling Infrastructure

Sterling Infrastructure, Inc is an infrastructure services company that provides construction and rehabilitation solutions for public and private-sector customers in the United States. Formerly known as Sterling Construction Company, the company adopted its current name to reflect the expansion of its business beyond traditional transportation construction.

The company operates through three principal business segments: E-Infrastructure Solutions, Transportation Solutions and Building Solutions.

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