Quanta Services, Inc. (NYSE:PWR) Receives Average Rating of "Moderate Buy" from Analysts

Key Points

• Analysts are broadly bullish on Quanta Services, with 27 firms giving the stock an average rating of “Moderate Buy.” The average 1-year price target is about $733.87, and several firms recently raised their targets.
• Quanta posted strong quarterly results, reporting EPS of $2.68 versus expectations of $2.04 and revenue of $7.87 billion, also beating estimates. Revenue rose 26.3% year over year, and the company lifted its FY 2026 EPS guidance.
• The company is returning capital to shareholders through a quarterly dividend of $0.11 per share and a new $1 billion share repurchase program. The buyback is a sign management may view the stock as undervalued, though insiders have also recently sold shares.

Shares of Quanta Services, Inc. (NYSE:PWR - Get Free Report) have been assigned an average recommendation of "Moderate Buy" from the twenty-seven ratings firms that are covering the company, Marketbeat reports. Seven analysts have rated the stock with a hold recommendation, nineteen have issued a buy recommendation and one has assigned a strong buy recommendation to the company. The average 1-year target price among brokers that have issued a report on the stock in the last year is $733.8696.

PWR has been the subject of several recent analyst reports. Citigroup raised their price target on Quanta Services from $640.00 to $733.00 and gave the company a "buy" rating in a report on Monday, April 27th. Jefferies Financial Group lifted their price objective on Quanta Services from $654.00 to $857.00 and gave the stock a "buy" rating in a report on Monday, May 4th. Stifel Nicolaus set a $784.00 price objective on Quanta Services in a report on Friday, May 1st. B. Riley Financial reaffirmed a "neutral" rating on shares of Quanta Services in a report on Friday, May 1st. Finally, Robert W. Baird lifted their price objective on Quanta Services from $606.00 to $777.00 and gave the stock an "outperform" rating in a report on Friday, May 1st.

Quanta Services Trading Up 5.7%

NYSE:PWR opened at $742.13 on Tuesday. The stock's 50 day moving average price is $693.63 and its 200 day moving average price is $568.38. The company has a market capitalization of $111.36 billion, a PE ratio of 101.80, a P/E/G ratio of 2.76 and a beta of 1.20. The company has a quick ratio of 1.09, a current ratio of 1.14 and a debt-to-equity ratio of 0.57. Quanta Services has a 52-week low of $358.38 and a 52-week high of $788.75.

Quanta Services (NYSE:PWR - Get Free Report) last released its quarterly earnings results on Thursday, April 30th. The construction company reported $2.68 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.04 by $0.64. The firm had revenue of $7.87 billion for the quarter, compared to the consensus estimate of $7 billion. Quanta Services had a return on equity of 18.64% and a net margin of 3.67%.The firm's quarterly revenue was up 26.3% compared to the same quarter last year. During the same quarter last year, the business posted $1.78 EPS. Quanta Services has set its FY 2026 guidance at 13.550-14.250 EPS. On average, research analysts anticipate that Quanta Services will post 12.81 EPS for the current year.

Quanta Services Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Monday, July 13th. Investors of record on Wednesday, July 1st will be issued a dividend of $0.11 per share. The ex-dividend date of this dividend is Wednesday, July 1st. This represents a $0.44 annualized dividend and a yield of 0.1%. Quanta Services's payout ratio is currently 6.04%.

Quanta Services declared that its Board of Directors has initiated a stock repurchase program on Friday, May 22nd that permits the company to buyback $1.00 billion in shares. This buyback authorization permits the construction company to purchase up to 0.9% of its shares through open market purchases. Shares buyback programs are typically an indication that the company's board believes its stock is undervalued.

Insider Buying and Selling at Quanta Services

In related news, CEO Earl C. Jr. Austin sold 130,000 shares of Quanta Services stock in a transaction on Tuesday, May 5th. The stock was sold at an average price of $770.65, for a total transaction of $100,184,500.00. Following the completion of the transaction, the chief executive officer directly owned 556,911 shares of the company's stock, valued at approximately $429,183,462.15. The trade was a 18.93% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this link. Also, CAO Paul Nobel sold 4,000 shares of Quanta Services stock in a transaction on Monday, May 4th. The stock was sold at an average price of $756.98, for a total value of $3,027,920.00. Following the transaction, the chief accounting officer directly owned 8,080 shares of the company's stock, valued at approximately $6,116,398.40. This represents a 33.11% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last ninety days, insiders have sold 159,992 shares of company stock valued at $123,244,714. 0.60% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Quanta Services

Hedge funds have recently bought and sold shares of the stock. Cedar Mountain Advisors LLC grew its position in shares of Quanta Services by 321.4% in the fourth quarter. Cedar Mountain Advisors LLC now owns 59 shares of the construction company's stock valued at $25,000 after purchasing an additional 45 shares during the period. Darwin Wealth Management LLC purchased a new stake in shares of Quanta Services in the second quarter valued at $26,000. Boreal Capital Management LLC purchased a new stake in shares of Quanta Services in the first quarter valued at $27,000. Flagship Harbor Advisors LLC purchased a new stake in shares of Quanta Services in the fourth quarter valued at $28,000. Finally, MV Capital Management Inc. purchased a new stake in shares of Quanta Services in the fourth quarter valued at $30,000. Hedge funds and other institutional investors own 90.49% of the company's stock.

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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