Stantec Inc. (NYSE:STN) Given Consensus Recommendation of "Buy" by Brokerages

Key Points

• Stantec Inc. has received an average rating of "Buy" from seven analysts, with several firms recently reissuing positive ratings, including CIBC and Scotiabank.
• The company reported $0.81 earnings per share for the last quarter, exceeding the consensus estimate and generating $1.08 billion in revenue despite lower expectations.
• Stantec announced an increased quarterly dividend of $0.1612 per share, showing a growth from the previous dividend and reflecting a dividend yield of 0.6%.

Stantec Inc. (NYSE:STN - Get Free Report) TSE: STN has earned a consensus rating of "Buy" from the seven analysts that are currently covering the stock, MarketBeat Ratings reports. Seven research analysts have rated the stock with a buy rating.

STN has been the subject of several research analyst reports. Wall Street Zen raised Stantec from a "buy" rating to a "strong-buy" rating in a report on Friday, July 18th. Scotiabank restated an "outperform" rating on shares of Stantec in a research note on Wednesday, May 7th. TD Securities reaffirmed a "buy" rating on shares of Stantec in a report on Friday, May 16th. Royal Bank Of Canada reissued an "outperform" rating on shares of Stantec in a report on Friday, May 16th. Finally, CIBC restated an "outperform" rating on shares of Stantec in a research report on Friday, July 18th.

Stantec Stock Performance

Shares of STN traded up $1.18 during trading hours on Friday, hitting $109.84. The stock had a trading volume of 55,893 shares, compared to its average volume of 161,997. The company has a debt-to-equity ratio of 0.41, a current ratio of 1.38 and a quick ratio of 1.38. Stantec has a 12 month low of $73.18 and a 12 month high of $113.50. The firm has a market capitalization of $12.53 billion, a PE ratio of 32.24 and a beta of 1.03. The stock has a fifty day moving average price of $107.97 and a 200 day moving average price of $92.68.

Stantec (NYSE:STN - Get Free Report) TSE: STN last issued its quarterly earnings data on Wednesday, May 14th. The business services provider reported $0.81 EPS for the quarter, topping the consensus estimate of $0.79 by $0.02. Stantec had a return on equity of 18.22% and a net margin of 5.01%. The company had revenue of $1.08 billion during the quarter, compared to analyst estimates of $1.54 billion. Analysts anticipate that Stantec will post 3.05 EPS for the current year.

Stantec Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Tuesday, July 15th. Shareholders of record on Monday, June 30th were paid a $0.1612 dividend. This represents a $0.64 dividend on an annualized basis and a yield of 0.6%. The ex-dividend date was Monday, June 30th. This is a boost from Stantec's previous quarterly dividend of $0.16. Stantec's dividend payout ratio (DPR) is currently 27.27%.

Institutional Investors Weigh In On Stantec

Institutional investors have recently bought and sold shares of the business. Mackenzie Financial Corp boosted its stake in shares of Stantec by 166.5% in the fourth quarter. Mackenzie Financial Corp now owns 22,342,818 shares of the business services provider's stock worth $1,751,093,000 after acquiring an additional 13,958,790 shares during the period. The Manufacturers Life Insurance Company boosted its stake in shares of Stantec by 28.8% in the first quarter. The Manufacturers Life Insurance Company now owns 4,309,182 shares of the business services provider's stock worth $359,131,000 after acquiring an additional 964,188 shares during the period. Janus Henderson Group PLC bought a new position in shares of Stantec in the fourth quarter worth about $56,191,000. The Manufacturers Life Insurance Company boosted its stake in shares of Stantec by 19.3% in the fourth quarter. The Manufacturers Life Insurance Company now owns 3,344,994 shares of the business services provider's stock worth $262,791,000 after acquiring an additional 542,305 shares during the period. Finally, Bank of Montreal Can boosted its stake in shares of Stantec by 9.5% in the fourth quarter. Bank of Montreal Can now owns 3,496,408 shares of the business services provider's stock worth $273,970,000 after acquiring an additional 302,979 shares during the period. Hedge funds and other institutional investors own 63.86% of the company's stock.

Stantec Company Profile

Stantec Inc provides professional services in the areas of infrastructure and facilities to the public and private sectors in Canada, the United States, and internationally. It offers evaluation, planning, and designing infrastructure solutions; solutions for sustainable water resources, planning, management, and infrastructure; environmental services; integrated architecture, engineering, interior design, and planning solutions for buildings; and energy and resources solutions.