Quanta Services (NYSE:PWR) Shares Down 3.8% - Should You Sell?

Key Points

• Quanta Services shares fell 3.8% to about $637.35 in Friday trading, with volume 57% below the average session level.
• Analyst sentiment remains broadly positive, with a “Moderate Buy” consensus and an average price target of $769.25; however, Morgan Stanley recently downgraded the stock to “underweight.”
• Quanta reported strong quarterly results, including $4.24 EPS versus the $3.31 estimate and 41.1% year-over-year revenue growth. Its board also authorized a $1 billion share-buyback program.

Shares of Quanta Services, Inc. (NYSE:PWR - Get Free Report) traded down 3.8% during mid-day trading on Friday . The company traded as low as $635.57 and last traded at $637.35. 500,566 shares traded hands during trading, a decline of 57% from the average session volume of 1,166,032 shares. The stock had previously closed at $662.47.

Analysts Set New Price Targets

A number of analysts recently weighed in on PWR shares. UBS Group reissued a "buy" rating on shares of Quanta Services in a report on Monday. Morgan Stanley downgraded Quanta Services to an "underweight" rating in a report on Monday, August 3rd. The Goldman Sachs Group lifted their target price on Quanta Services from $685.00 to $826.00 and gave the company a "buy" rating in a research note on Monday, May 4th. Citigroup boosted their target price on Quanta Services from $837.00 to $871.00 and gave the stock a "buy" rating in a research report on Friday, July 31st. Finally, Wall Street Zen raised Quanta Services from a "hold" rating to a "buy" rating in a research note on Sunday, August 2nd. One analyst has rated the stock with a Strong Buy rating, twenty-one have given a Buy rating, seven have assigned a Hold rating and three have assigned a Sell rating to the company. Based on data from MarketBeat.com, the company has an average rating of "Moderate Buy" and an average target price of $769.25.

Quanta Services Stock Performance

The firm has a market cap of $97.72 billion, a P/E ratio of 74.45, a PEG ratio of 2.22 and a beta of 1.23. The company has a debt-to-equity ratio of 0.56, a quick ratio of 1.05 and a current ratio of 1.10. The stock's 50-day moving average is $672.91 and its 200 day moving average is $634.62.

Quanta Services (NYSE:PWR - Get Free Report) last posted its earnings results on Thursday, July 30th. The construction company reported $4.24 earnings per share for the quarter, topping the consensus estimate of $3.31 by $0.93. Quanta Services had a return on equity of 20.55% and a net margin of 4.03%.The firm had revenue of $9.56 billion for the quarter, compared to analyst estimates of $8.61 billion. During the same period in the previous year, the company posted $2.48 earnings per share. The company's revenue for the quarter was up 41.1% on a year-over-year basis. Quanta Services has set its FY 2026 guidance at 16.450-16.950 EPS. On average, research analysts predict that Quanta Services, Inc. will post 15.35 earnings per share for the current year.

Quanta Services declared that its board has authorized a stock buyback plan on Friday, May 22nd that allows the company to buyback $1.00 billion in outstanding shares. This buyback authorization allows the construction company to reacquire up to 0.9% of its stock through open market purchases. Stock buyback plans are often a sign that the company's board of directors believes its stock is undervalued.

Institutional Trading of Quanta Services

Several hedge funds have recently bought and sold shares of the stock. Boreal Capital Management LLC bought a new stake in shares of Quanta Services during the first quarter worth $27,000. JNBA Financial Advisors lifted its position in Quanta Services by 1,733.3% in the 2nd quarter. JNBA Financial Advisors now owns 55 shares of the construction company's stock valued at $40,000 after acquiring an additional 52 shares in the last quarter. Cedar Mountain Advisors LLC boosted its stake in Quanta Services by 321.4% in the 4th quarter. Cedar Mountain Advisors LLC now owns 59 shares of the construction company's stock worth $25,000 after purchasing an additional 45 shares during the period. Darwin Wealth Management LLC bought a new position in Quanta Services during the 2nd quarter worth about $26,000. Finally, MV Capital Management Inc. bought a new position in Quanta Services during the 4th quarter worth about $30,000. 90.49% of the stock is currently owned by institutional investors and hedge funds.

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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