Stantec (NYSE:STN) Shares Gap Down - Should You Sell?

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.

Stantec Inc. (NYSE:STN - Get Free Report) TSE: STN's share price 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 changing hands.

Wall Street Analysts Forecast Growth

A number of research firms recently commented on STN. Scotiabank reiterated an "outperform" rating on shares of Stantec in a research note on Wednesday, May 7th. Wall Street Zen downgraded Stantec from a "strong-buy" rating to a "buy" rating in a research report on Saturday. CIBC restated an "outperform" rating on shares of Stantec in a research report on Friday, July 18th. TD Securities restated a "buy" rating on shares of Stantec in a report on Friday, May 16th. Finally, Royal Bank Of Canada restated an "outperform" rating on shares of Stantec in a report on Friday, May 16th. Seven equities research analysts have rated the stock with a Buy rating, According to MarketBeat.com, the stock has an average rating of "Buy".

Stantec Stock Performance

The firm's 50-day simple moving average is $108.97 and its two-hundred day simple moving average is $95.05. The company has a current ratio of 1.44, a quick ratio of 1.44 and a debt-to-equity ratio of 0.44. The stock has a market capitalization of $12.25 billion, a PE ratio of 39.20 and a beta of 1.03.

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

Stantec Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Wednesday, October 15th. Shareholders of record on Monday, September 29th will be paid a dividend of $0.1635 per share. This is an increase from Stantec's previous quarterly dividend of $0.16. The ex-dividend date of this dividend is Monday, September 29th. This represents a $0.65 dividend on an annualized basis and a dividend yield of 0.6%. Stantec's dividend payout ratio (DPR) is 24.09%.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the company. Wealth Preservation Advisors LLC acquired a new stake in Stantec in the first quarter valued at approximately $26,000. Simplex Trading LLC bought a new stake in Stantec in the second quarter worth $32,000. Tower Research Capital LLC TRC raised its holdings in Stantec by 632.8% during the fourth quarter. Tower Research Capital LLC TRC now owns 491 shares of the business services provider's stock valued at $39,000 after buying an additional 424 shares in the last quarter. Caitong International Asset Management Co. Ltd lifted its position in shares of Stantec by 4,700.0% in the second quarter. Caitong International Asset Management Co. Ltd now owns 384 shares of the business services provider's stock worth $42,000 after buying an additional 376 shares during the last quarter. Finally, Tower Research Capital LLC TRC boosted its stake in shares of Stantec by 423.7% during the 2nd quarter. Tower Research Capital LLC TRC now owns 508 shares of the business services provider's stock worth $55,000 after acquiring an additional 411 shares in the last quarter. Hedge funds and other institutional investors 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.