Quanta Services, Inc. (NYSE:PWR) Given Consensus Recommendation of "Moderate Buy" by Analysts

Key Points

• Analysts assign Quanta Services a “Moderate Buy” consensus: 21 analysts recommend buying the stock, while seven rate it a hold and three rate it a sell. The average 12-month price target is $767.21, above the reported price of $670.41.
• Quanta Services exceeded quarterly expectations, reporting $4.24 in EPS versus the $3.31 consensus and revenue of $9.56 billion versus $8.61 billion expected. Revenue increased 41.1% year over year.
• Institutional investors own 90.49% of the company, while Quanta has authorized a $1 billion stock-repurchase program. The company also pays a quarterly dividend of $0.11, equivalent to a 0.1% annual yield.

Shares of Quanta Services, Inc. (NYSE:PWR - Get Free Report) have been assigned an average rating of "Moderate Buy" from the thirty-two research firms that are presently covering the firm, Marketbeat.com reports. Three research analysts have rated the stock with a sell recommendation, seven have issued a hold recommendation, twenty-one have given a buy recommendation and one has assigned a strong buy recommendation to the company. The average 1-year target price among brokerages that have issued ratings on the stock in the last year is $767.2083.

A number of research analysts recently issued reports on the company. Cantor Fitzgerald initiated coverage on Quanta Services in a research report on Friday, July 31st. They set an "outperform" rating for the company. KeyCorp raised Quanta Services from a "sector weight" rating to an "overweight" rating and set a $807.00 target price on the stock in a research report on Friday. Mizuho raised their target price on Quanta Services from $659.00 to $741.00 and gave the company a "neutral" rating in a research note on Monday, August 3rd. Benchmark downgraded shares of Quanta Services to a "sell" rating in a report on Friday, July 31st. Finally, B. Riley Financial restated a "neutral" rating on shares of Quanta Services in a research report on Friday, May 1st.

Institutional Investors Weigh In On Quanta Services

A number of hedge funds have recently made changes to their positions in the business. Cedar Mountain Advisors LLC increased its position in Quanta Services by 321.4% in the 4th quarter. Cedar Mountain Advisors LLC now owns 59 shares of the construction company's stock valued at $25,000 after acquiring an additional 45 shares during the period. Darwin Wealth Management LLC acquired a new position in Quanta Services during the 2nd quarter worth $26,000. Boreal Capital Management LLC acquired a new position in Quanta Services during the 1st quarter worth $27,000. Flagship Harbor Advisors LLC bought a new position in shares of Quanta Services in the fourth quarter worth $28,000. Finally, MV Capital Management Inc. acquired a new position in shares of Quanta Services during the fourth quarter valued at $30,000. Institutional investors own 90.49% of the company's stock.

Quanta Services Price Performance

PWR opened at $670.41 on Wednesday. The company has a quick ratio of 1.05, a current ratio of 1.10 and a debt-to-equity ratio of 0.56. The company's 50-day moving average price is $674.00 and its 200 day moving average price is $624.25. Quanta Services has a fifty-two week low of $363.01 and a fifty-two week high of $788.75. The firm has a market cap of $100.79 billion, a price-to-earnings ratio of 76.79, a price-to-earnings-growth ratio of 2.17 and a beta of 1.23.

Quanta Services (NYSE:PWR - Get Free Report) last issued its earnings results on Thursday, July 30th. The construction company reported $4.24 EPS for the quarter, beating analysts' consensus estimates of $3.31 by $0.93. The company had revenue of $9.56 billion during the quarter, compared to the consensus estimate of $8.61 billion. Quanta Services had a return on equity of 20.55% and a net margin of 4.03%.Quanta Services's quarterly revenue was up 41.1% compared to the same quarter last year. During the same period in the previous year, the firm posted $2.48 earnings per share. Quanta Services has set its FY 2026 guidance at 16.450-16.950 EPS. As a group, sell-side analysts expect that Quanta Services will post 15.33 earnings per share for the current year.

Quanta Services declared that its board has approved a stock repurchase program on Friday, May 22nd that permits the company to repurchase $1.00 billion in shares. This repurchase authorization permits the construction company to reacquire up to 0.9% of its stock through open market purchases. Stock repurchase programs are often an indication that the company's management believes its shares are undervalued.

Quanta Services Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Monday, July 13th. Shareholders of record on Wednesday, July 1st were given a $0.11 dividend. The ex-dividend date was Wednesday, July 1st. This represents a $0.44 annualized dividend and a yield of 0.1%. Quanta Services's dividend payout ratio is 5.04%.

Quanta Services Company Profile

Quanta Services, Inc is a leading specialty contractor that provides comprehensive infrastructure solutions for the electric power, pipeline and energy, and communications markets. Headquartered in Houston, Texas, the company delivers engineering, procurement, construction, installation, maintenance and repair services that support the development, modernization and ongoing operation of critical energy and communications networks.

In the electric power sector, Quanta works on transmission and distribution systems, substation construction and grid modernization projects that include integration of renewable generation and energy storage.

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