Quanta Services (NYSE:PWR) Downgraded by Zacks Research to “Hold”

Quanta Services (NYSE:PWR) was downgraded by equities researchers at Zacks Research from a “strong-buy” rating to a “hold” rating in a research report issued to clients and investors on Monday,Zacks.com reports.

A number of other research firms also recently weighed in on PWR. Citigroup upped their target price on Quanta Services from $640.00 to $733.00 and gave the stock a “buy” rating in a report on Monday, April 27th. Jefferies Financial Group raised their price objective on Quanta Services from $654.00 to $857.00 and gave the company a “buy” rating in a research report on Monday, May 4th. Evercore increased their price target on shares of Quanta Services from $635.00 to $800.00 and gave the stock an “outperform” rating in a research note on Friday, May 1st. JPMorgan Chase & Co. lifted their price target on shares of Quanta Services from $627.00 to $805.00 and gave the company an “overweight” rating in a research report on Friday, May 1st. Finally, Sanford C. Bernstein upped their price objective on shares of Quanta Services from $538.00 to $725.00 and gave the stock a “market perform” rating in a report on Tuesday, May 5th. Nineteen investment analysts have rated the stock with a Buy rating and seven have given a Hold rating to the stock. Based on data from MarketBeat, Quanta Services currently has a consensus rating of “Moderate Buy” and an average target price of $755.18.

Quanta Services Stock Performance

Shares of PWR stock opened at $656.48 on Monday. The firm has a market capitalization of $98.51 billion, a price-to-earnings ratio of 90.05, a PEG ratio of 2.65 and a beta of 1.21. The stock has a fifty day moving average of $712.92 and a 200 day moving average of $587.03. Quanta Services has a 52 week low of $363.01 and a 52 week high of $788.75. The company has a quick ratio of 1.09, a current ratio of 1.14 and a debt-to-equity ratio of 0.57.

Quanta Services (NYSE:PWR) last announced its quarterly earnings results on Thursday, April 30th. The construction company reported $2.68 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.04 by $0.64. Quanta Services had a net margin of 3.67% and a return on equity of 18.64%. The company had revenue of $7.87 billion for the quarter, compared to analysts’ expectations of $7 billion. During the same quarter in the previous year, the company earned $1.78 earnings per share. Quanta Services’s quarterly revenue was up 26.3% on a year-over-year basis. Quanta Services has set its FY 2026 guidance at 13.550-14.250 EPS. As a group, research analysts expect that Quanta Services will post 12.81 earnings per share for the current year.

Quanta Services announced that its Board of Directors has authorized a stock buyback plan on Friday, May 22nd that permits the company to buyback $1.00 billion in shares. This buyback authorization permits the construction company to reacquire up to 0.9% of its shares through open market purchases. Shares buyback plans are usually a sign that the company’s leadership believes its shares are undervalued.

Insider Buying and Selling

In related news, CAO Paul Nobel sold 4,000 shares of the stock in a transaction on Monday, May 4th. The stock was sold at an average price of $756.98, for a total transaction of $3,027,920.00. Following the sale, the chief accounting officer directly owned 8,080 shares of the company’s stock, valued at $6,116,398.40. This trade represents a 33.11% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, CEO Earl C. Jr. Austin sold 130,000 shares of the business’s stock in a transaction dated Tuesday, May 5th. The stock was sold at an average price of $770.65, for a total value of $100,184,500.00. Following the completion of the transaction, the chief executive officer directly owned 556,911 shares of the company’s stock, valued at approximately $429,183,462.15. This trade represents a 18.93% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders sold 159,992 shares of company stock valued at $123,244,714. 0.60% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Norges Bank purchased a new stake in shares of Quanta Services in the 4th quarter worth $817,285,000. Bank of America Corp DE lifted its position in Quanta Services by 35.6% during the third quarter. Bank of America Corp DE now owns 2,916,540 shares of the construction company’s stock valued at $1,208,672,000 after purchasing an additional 765,822 shares in the last quarter. Victory Capital Management Inc. grew its holdings in Quanta Services by 35.2% during the fourth quarter. Victory Capital Management Inc. now owns 2,915,440 shares of the construction company’s stock valued at $1,230,493,000 after purchasing an additional 758,862 shares during the period. Corient Private Wealth LLC increased its position in Quanta Services by 137.6% in the fourth quarter. Corient Private Wealth LLC now owns 1,151,650 shares of the construction company’s stock worth $486,065,000 after buying an additional 667,050 shares in the last quarter. Finally, Sands Capital Management LLC bought a new position in shares of Quanta Services in the fourth quarter worth about $243,485,000. Institutional investors own 90.49% of the company’s stock.

Quanta Services Company Profile

Quanta Services, Inc is a leading specialty contractor that provides comprehensive infrastructure solutions for the electric power, pipeline and energy, and communications markets. Headquartered in Houston, Texas, the company delivers engineering, procurement, construction, installation, maintenance and repair services that support the development, modernization and ongoing operation of critical energy and communications networks.

In the electric power sector, Quanta works on transmission and distribution systems, substation construction and grid modernization projects that include integration of renewable generation and energy storage.