Stantec (NYSE:STN) Shares Gap Down - Here's What Happened

Key Points

• Stantec Inc. shares experienced a significant gap down, opening at $98.48 from a previous close of $108.74.
• Analysts remain optimistic, with a consensus rating of "Buy" and multiple upgrades, including a move from "buy" to "strong-buy" by Wall Street Zen.
• Institutional investors hold a substantial stake in Stantec, owning 63.86% of the company's stock, with recent notable increases in positions from Mackenzie Financial Corp and Norges Bank.

Shares of Stantec Inc. (NYSE:STN - Get Free Report) TSE: STN gapped down before the market opened on Thursday . The stock had previously closed at $108.74, but opened at $98.48. Stantec shares last traded at $103.53, with a volume of 112,910 shares traded.

Wall Street Analyst Weigh In

Several research firms have recently commented on STN. TD Securities restated a "buy" rating on shares of Stantec in a research report on Friday, May 16th. Wall Street Zen upgraded Stantec from a "buy" rating to a "strong-buy" rating in a report on Friday, July 18th. Scotiabank reiterated an "outperform" rating on shares of Stantec in a report on Wednesday, May 7th. CIBC reiterated an "outperform" rating on shares of Stantec in a report on Friday, July 18th. Finally, Royal Bank Of Canada restated an "outperform" rating on shares of Stantec in a research note on Friday, May 16th. Seven equities research analysts have rated the stock with a buy rating and one has given a strong buy rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of "Buy".

Stantec Price Performance

The stock has a 50-day moving average price of $108.89 and a 200 day moving average price of $94.16. The company has a debt-to-equity ratio of 0.41, a current ratio of 1.38 and a quick ratio of 1.38. The firm has a market cap of $12.01 billion, a price-to-earnings ratio of 43.51 and a beta of 1.03.

Stantec (NYSE:STN - Get Free Report) TSE: STN last posted its earnings results on Wednesday, August 13th. The business services provider reported $0.98 EPS for the quarter, hitting analysts' consensus estimates of $0.98. Stantec had a return on equity of 18.22% and a net margin of 5.01%. The business had revenue of $1.17 billion for the quarter, compared to analysts' expectations of $1.64 billion. As a group, equities research analysts forecast that Stantec Inc. will post 3.05 earnings per share for the current fiscal year.

Institutional Trading of Stantec

A number of hedge funds and other institutional investors have recently made changes to their positions in STN. Mackenzie Financial Corp increased its position in Stantec by 166.5% in the 4th quarter. Mackenzie Financial Corp now owns 22,342,818 shares of the business services provider's stock valued at $1,751,093,000 after acquiring an additional 13,958,790 shares during the period. Norges Bank acquired a new position in Stantec in the 2nd quarter valued at about $157,932,000. The Manufacturers Life Insurance Company increased its position in Stantec by 28.8% in the 1st quarter. The Manufacturers Life Insurance Company now owns 4,309,182 shares of the business services provider's stock valued at $359,131,000 after acquiring an additional 964,188 shares during the period. Janus Henderson Group PLC acquired a new position in Stantec in the 4th quarter valued at about $56,191,000. Finally, The Manufacturers Life Insurance Company increased its position in Stantec by 19.3% in the 4th quarter. The Manufacturers Life Insurance Company now owns 3,344,994 shares of the business services provider's stock valued at $262,791,000 after acquiring an additional 542,305 shares during the period. Institutional investors and hedge funds own 63.86% of the company's stock.

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.

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