Stantec (STN) Cut to “Sell” at Zacks Investment Research

Zacks Investment Research downgraded shares of Stantec (NYSE:STN) (TSE:STN) from a hold rating to a sell rating in a research note issued to investors on Wednesday morning.

According to Zacks, “Stantec Inc. provides professional consulting services in planning, engineering, architecture, interior design, landscape architecture, surveying and geomatics. It also provides professional consulting services in environmental sciences, project management, and project economics for infrastructure and facilities projects. Its services include, or relate to, the development of conceptual plans, zoning approval of design infrastructure, transportation planning, traffic engineering, landscape architecture, urban planning, design construction review and surveying. It provides knowledge-based solutions for infrastructure and facilities projects through value-added professional services principally under fee-for-service agreements with clients. Stantec Inc. is headquartered in Edmonton, Canada. “

A number of other equities analysts have also commented on STN. TheStreet upgraded shares of Stantec from a c+ rating to a b- rating in a research report on Monday, July 2nd. CIBC lowered shares of Stantec from a sector outperform rating to a neutral rating in a research report on Thursday, July 5th. Finally, ValuEngine upgraded shares of Stantec from a sell rating to a hold rating in a research report on Tuesday, September 18th. One equities research analyst has rated the stock with a sell rating and three have given a hold rating to the company. Stantec presently has a consensus rating of Hold and a consensus price target of $34.50.

STN opened at $24.41 on Wednesday. The company has a debt-to-equity ratio of 0.43, a current ratio of 1.69 and a quick ratio of 1.69. Stantec has a twelve month low of $24.05 and a twelve month high of $29.25. The stock has a market capitalization of $2.83 billion, a PE ratio of 17.99 and a beta of 1.57.

Stantec (NYSE:STN) (TSE:STN) last released its quarterly earnings data on Wednesday, August 8th. The business services provider reported $0.32 EPS for the quarter, missing analysts’ consensus estimates of $0.42 by ($0.10). Stantec had a net margin of 2.58% and a return on equity of 10.09%. The firm had revenue of $703.54 million during the quarter, compared to the consensus estimate of $705.24 million. On average, equities research analysts anticipate that Stantec will post 1.35 EPS for the current fiscal year.

The company also recently disclosed a quarterly dividend, which was paid on Thursday, October 11th. Stockholders of record on Friday, September 28th were given a $0.106 dividend. The ex-dividend date of this dividend was Thursday, September 27th. This represents a $0.42 dividend on an annualized basis and a dividend yield of 1.74%. Stantec’s dividend payout ratio (DPR) is currently 30.88%.

Several hedge funds have recently added to or reduced their stakes in STN. JPMorgan Chase & Co. bought a new position in shares of Stantec in the first quarter valued at approximately $271,000. Dimensional Fund Advisors LP lifted its position in Stantec by 7.4% during the first quarter. Dimensional Fund Advisors LP now owns 137,407 shares of the business services provider’s stock valued at $3,387,000 after purchasing an additional 9,499 shares during the last quarter. CIBC World Markets Inc. lifted its position in Stantec by 72.0% during the first quarter. CIBC World Markets Inc. now owns 208,934 shares of the business services provider’s stock valued at $5,150,000 after purchasing an additional 87,483 shares during the last quarter. Addenda Capital Inc. lifted its position in Stantec by 96.5% during the second quarter. Addenda Capital Inc. now owns 436,396 shares of the business services provider’s stock valued at $11,029,000 after purchasing an additional 214,263 shares during the last quarter. Finally, Bank of Montreal Can lifted its position in Stantec by 8.3% during the second quarter. Bank of Montreal Can now owns 461,806 shares of the business services provider’s stock valued at $11,845,000 after purchasing an additional 35,461 shares during the last quarter. Institutional investors own 58.34% of the company’s stock.

About Stantec

Stantec Inc provides professional consulting services in the area of infrastructure and facilities for clients in the public and private sectors in Canada, the United States, and internationally. It operates through four segments: Consulting Services ? Canada, Consulting Services ? United States, Consulting Services ? Global, and Construction Services.

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