Sterling Infrastructure (NASDAQ:STRL) Lowered to Buy Rating by Wall Street Zen

Key Points

• Wall Street Zen downgraded Sterling Infrastructure from strong-buy to buy, though the stock still carries a consensus Buy rating from analysts.
• Several other firms remain positive on the company, including Oppenheimer’s outperform rating with a $950 target and KeyCorp’s raised target to $922. MarketBeat says the average price target is $720.67.
• Sterling posted strong quarterly results, with EPS of $3.59 and revenue of $825.67 million, both well above expectations. The company also gave FY 2026 EPS guidance of 18.4 to 19.05.

Sterling Infrastructure (NASDAQ:STRL - Get Free Report) was downgraded by equities research analysts at Wall Street Zen from a "strong-buy" rating to a "buy" rating in a report released on Saturday.

Several other research analysts also recently commented on the company. Oppenheimer initiated coverage on Sterling Infrastructure in a report on Thursday, May 28th. They set an "outperform" rating and a $950.00 target price on the stock. Cantor Fitzgerald reissued an "overweight" rating on shares of Sterling Infrastructure in a research note on Thursday, June 18th. Zacks Research upgraded Sterling Infrastructure from a "hold" rating to a "strong-buy" rating in a research report on Monday, June 1st. KeyCorp lifted their price objective on Sterling Infrastructure from $889.00 to $922.00 and gave the stock an "overweight" rating in a research note on Tuesday, June 2nd. Finally, Weiss Ratings cut Sterling Infrastructure from a "buy (b)" rating to a "buy (b-)" rating in a report on Thursday, May 14th. One research analyst has rated the stock with a Strong Buy rating and seven have issued a Buy rating to the company's stock. According to MarketBeat.com, Sterling Infrastructure presently has a consensus rating of "Buy" and an average price target of $720.67.

Sterling Infrastructure Price Performance

NASDAQ:STRL opened at $700.75 on Friday. The firm's 50 day simple moving average is $791.76 and its 200 day simple moving average is $528.83. The company has a debt-to-equity ratio of 0.23, a current ratio of 1.10 and a quick ratio of 1.10. Sterling Infrastructure has a one year low of $225.46 and a one year high of $1,005.68. The company has a market cap of $21.51 billion, a PE ratio of 62.68, a P/E/G ratio of 2.55 and a beta of 1.83.

Sterling Infrastructure (NASDAQ:STRL - Get Free Report) last announced its quarterly earnings results on Monday, May 4th. The construction company reported $3.59 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.29 by $1.30. The firm had revenue of $825.67 million during the quarter, compared to analysts' expectations of $603.58 million. Sterling Infrastructure had a net margin of 12.02% and a return on equity of 35.64%. During the same period in the prior year, the company posted $1.63 EPS. Sterling Infrastructure has set its FY 2026 guidance at 18.400-19.050 EPS. On average, research analysts anticipate that Sterling Infrastructure will post 18.35 earnings per share for the current year.

Insider Transactions at Sterling Infrastructure

In other Sterling Infrastructure news, CEO Joseph A. Cutillo sold 50,000 shares of the stock in a transaction dated Thursday, April 23rd. The stock was sold at an average price of $497.57, for a total transaction of $24,878,500.00. Following the completion of the sale, the chief executive officer directly owned 290,593 shares in the company, valued at approximately $144,590,359.01. This trade represents a 14.68% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, General Counsel Mark D. Wolf sold 2,500 shares of Sterling Infrastructure stock in a transaction dated Thursday, June 25th. The stock was sold at an average price of $888.00, for a total value of $2,220,000.00. Following the completion of the transaction, the general counsel directly owned 28,137 shares of the company's stock, valued at approximately $24,985,656. This trade represents a 8.16% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Company insiders own 1.60% of the company's stock.

Institutional Investors Weigh In On Sterling Infrastructure

A number of hedge funds have recently added to or reduced their stakes in the business. MassMutual Private Wealth & Trust FSB boosted its holdings in shares of Sterling Infrastructure by 100.0% during the 2nd quarter. MassMutual Private Wealth & Trust FSB now owns 60 shares of the construction company's stock worth $50,000 after buying an additional 30 shares in the last quarter. Eastern Bank bought a new stake in shares of Sterling Infrastructure in the 2nd quarter valued at $168,000. Parallel Advisors LLC increased its stake in shares of Sterling Infrastructure by 7.7% in the 1st quarter. Parallel Advisors LLC now owns 629 shares of the construction company's stock valued at $256,000 after acquiring an additional 45 shares in the last quarter. NewEdge Advisors LLC increased its stake in shares of Sterling Infrastructure by 40.7% in the 1st quarter. NewEdge Advisors LLC now owns 5,518 shares of the construction company's stock valued at $2,247,000 after acquiring an additional 1,595 shares in the last quarter. Finally, WNY Asset Management LLC acquired a new position in shares of Sterling Infrastructure during the 1st quarter valued at $621,000. 80.95% of the stock is currently owned by institutional investors.

About Sterling Infrastructure

Sterling Infrastructure, Inc NASDAQ: STRL is a diversified manufacturer and distributor of essential infrastructure products serving municipal, utility and industrial customers across North America. Through its network of wholly owned subsidiaries, the company designs, engineers and produces a wide range of cast and fabricated solutions tailored to the needs of the waterworks, natural gas, telecommunications, electric, traffic safety and parks & recreation markets.

The company's product portfolio encompasses ductile iron and composite fittings, valve boxes, manhole frames and covers, water and gas meter sets, street light poles and mounting accessories, traffic sign posts with breakaway systems, bollards and related system components.

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