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

Key Points

• Stantec Inc. has received an average recommendation of "Buy" from seven brokerages covering the company, indicating strong analyst support.
• The company recently announced a quarterly dividend increase to $0.1635, which will be paid on October 15th, reflecting a positive trend in its dividend policy.
• Stantec's last quarterly earnings report showed earnings per share of $0.98, matching analyst expectations, with revenues of $1.17 billion, falling short of the consensus estimate.

Shares of Stantec Inc. (NYSE:STN - Get Free Report) TSE: STN have received an average rating of "Buy" from the seven research firms that are presently covering the stock, MarketBeat.com reports. Seven analysts have rated the stock with a buy recommendation.

STN has been the subject of a number of recent analyst reports. TD Securities reiterated a "buy" rating on shares of Stantec in a report on Friday, May 16th. Scotiabank reiterated an "outperform" rating on shares of Stantec in a report on Wednesday, May 7th. Royal Bank Of Canada reiterated an "outperform" rating on shares of Stantec in a report on Friday, May 16th. Wall Street Zen lowered shares of Stantec from a "strong-buy" rating to a "buy" rating in a report on Saturday, August 16th. Finally, CIBC reiterated an "outperform" rating on shares of Stantec in a report on Friday, July 18th.

Stantec Price Performance

STN stock traded down $1.27 during midday trading on Wednesday, reaching $108.76. The company had a trading volume of 117,737 shares, compared to its average volume of 202,497. The company has a debt-to-equity ratio of 0.44, a current ratio of 1.44 and a quick ratio of 1.44. Stantec has a 1 year low of $73.18 and a 1 year high of $113.50. The company has a market capitalization of $12.41 billion, a P/E ratio of 39.69 and a beta of 1.07. The firm has a 50-day moving average price of $109.30 and a 200-day moving average price of $96.98.

Stantec (NYSE:STN - Get Free Report) TSE: STN last announced its quarterly earnings data on Wednesday, August 13th. The business services provider reported $0.98 earnings per share for the quarter, hitting analysts' consensus estimates of $0.98. The firm had revenue of $1.17 billion during the quarter, compared to analyst estimates of $1.64 billion. Stantec had a net margin of 5.62% and a return on equity of 19.03%. Stantec has set its FY 2025 guidance at 3.784-3.880 EPS. On average, research analysts anticipate that Stantec will post 3.05 earnings per share for the current fiscal year.

Stantec Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 15th. Shareholders of record on Monday, September 29th will be given a dividend of $0.1635 per share. This represents a $0.65 dividend on an annualized basis and a yield of 0.6%. The ex-dividend date of this dividend is Monday, September 29th. This is an increase from Stantec's previous quarterly dividend of $0.16. Stantec's payout ratio is presently 23.36%.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the stock. Dimensional Fund Advisors LP increased its position in Stantec by 13.1% during the 4th quarter. Dimensional Fund Advisors LP now owns 263,845 shares of the business services provider's stock valued at $20,699,000 after purchasing an additional 30,629 shares during the period. BNP Paribas Financial Markets grew its position in shares of Stantec by 114.3% in the 4th quarter. BNP Paribas Financial Markets now owns 23,679 shares of the business services provider's stock worth $1,858,000 after buying an additional 12,627 shares during the period. Jane Street Group LLC grew its position in shares of Stantec by 199.0% in the 4th quarter. Jane Street Group LLC now owns 12,741 shares of the business services provider's stock worth $1,000,000 after buying an additional 8,480 shares during the period. American Century Companies Inc. grew its position in shares of Stantec by 18.2% in the 1st quarter. American Century Companies Inc. now owns 49,805 shares of the business services provider's stock worth $4,128,000 after buying an additional 7,671 shares during the period. Finally, Envestnet Asset Management Inc. purchased a new stake in shares of Stantec in the 4th quarter worth about $205,000. 63.86% of the stock is owned by hedge funds and other institutional investors.

About Stantec

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.