Stantec (NYSE:STN) Downgraded to "Buy" Rating by Wall Street Zen

Key Points

• Stantec's stock rating was downgraded from a "strong-buy" to a "buy" by Wall Street Zen, despite several other analysts maintaining an "outperform" rating.
• Stantec reported $0.98 earnings per share for the latest quarter, meeting analyst expectations, but its revenue of $1.17 billion fell short of the estimated $1.64 billion.
• Institutional investors and hedge funds own 63.86% of Stantec's stock, with significant increases in stakes reported by several investment firms during the second quarter.

Wall Street Zen lowered shares of Stantec (NYSE:STN - Free Report) TSE: STN from a strong-buy rating to a buy rating in a research note published on Saturday morning.

Several other research firms also recently issued reports on STN. Scotiabank restated an "outperform" rating on shares of Stantec in a research note on Wednesday, May 7th. Royal Bank Of Canada reaffirmed an "outperform" rating on shares of Stantec in a report on Friday, May 16th. CIBC reaffirmed an "outperform" rating on shares of Stantec in a report on Friday, July 18th. Finally, TD Securities restated a "buy" rating on shares of Stantec in a research note on Friday, May 16th. Seven investment analysts have rated the stock with a Buy rating, According to MarketBeat, the stock presently has an average rating of "Buy".

Stantec Stock Performance

Shares of NYSE STN traded up $1.18 during trading on Friday, reaching $107.24. 80,584 shares of the company traded hands, compared to its average volume of 173,818. The firm's fifty day simple moving average is $108.94 and its 200 day simple moving average is $94.96. The stock has a market cap of $12.23 billion, a P/E ratio of 39.12 and a beta of 1.03. Stantec has a 12-month low of $73.18 and a 12-month high of $113.50. The company has a current ratio of 1.44, a quick ratio of 1.44 and a debt-to-equity ratio of 0.44.

Stantec (NYSE:STN - Get Free Report) TSE: STN last announced its quarterly earnings results on Wednesday, August 13th. The business services provider reported $0.98 EPS for the quarter, meeting the consensus estimate of $0.98. Stantec had a return on equity of 19.03% and a net margin of 5.62%.The business had revenue of $1.17 billion for the quarter, compared to analyst estimates of $1.64 billion. Stantec has set its FY 2025 guidance at 3.784-3.880 EPS. As a group, 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. Stockholders of record on Monday, September 29th will be issued a $0.1635 dividend. This represents a $0.65 annualized dividend and a dividend yield of 0.6%. The ex-dividend date is Monday, September 29th. This is a positive change from Stantec's previous quarterly dividend of $0.16. Stantec's dividend payout ratio is 24.09%.

Institutional Investors Weigh In On Stantec

A number of hedge funds have recently made changes to their positions in STN. Wealth Preservation Advisors LLC bought a new position in Stantec during the 1st quarter worth approximately $26,000. Simplex Trading LLC purchased a new position in Stantec during the 2nd quarter worth $32,000. Tower Research Capital LLC TRC boosted its holdings in Stantec by 632.8% during the 4th quarter. Tower Research Capital LLC TRC now owns 491 shares of the business services provider's stock worth $39,000 after acquiring an additional 424 shares during the last quarter. Caitong International Asset Management Co. Ltd boosted its holdings in Stantec by 4,700.0% during the 2nd quarter. Caitong International Asset Management Co. Ltd now owns 384 shares of the business services provider's stock worth $42,000 after acquiring an additional 376 shares during the last quarter. Finally, Tower Research Capital LLC TRC boosted its holdings in shares of Stantec by 423.7% in the 2nd quarter. Tower Research Capital LLC TRC now owns 508 shares of the business services provider's stock worth $55,000 after buying an additional 411 shares during the last quarter. 63.86% of the stock is currently owned by institutional investors and hedge funds.

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.