Stantec (NYSE:STN) Shares Gap Up After Earnings Beat

Stantec Inc. (NYSE:STN) (TSE:STN)’s share price gapped up before the market opened on Friday following a stronger than expected earnings report. The stock had previously closed at $75.13, but opened at $83.04. Stantec shares last traded at $85.47, with a volume of 169,450 shares traded.

The business services provider reported $1.35 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.26 by $0.09. Stantec had a return on equity of 19.70% and a net margin of 5.91%. The business had revenue of $1.31 billion for the quarter, compared to analysts’ expectations of $1.30 billion. Stantec has set its FY 2026 guidance at 4.430-4.510 EPS.

Analyst Upgrades and Downgrades

A number of equities analysts have recently commented on STN shares. Weiss Ratings upgraded shares of Stantec from a “hold (c-)” rating to a “hold (c)” rating in a research report on Thursday, October 8th. Canadian Imperial Bank of Commerce reaffirmed an “outperform” rating on shares of Stantec in a research note on Friday, August 14th. Scotiabank reaffirmed an “outperform” rating on shares of Stantec in a report on Friday, August 14th. Finally, Wall Street Zen cut shares of Stantec from a “buy” rating to a “hold” rating in a research note on Saturday, October 17th. Five analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company’s stock. According to data from MarketBeat, the company currently has an average rating of “Moderate Buy” and an average price target of $175.00.

Hedge Funds Weigh In On Stantec

A number of institutional investors have recently added to or reduced their stakes in the business. Bank of America Corp DE increased its position in shares of Stantec by 12.6% in the first quarter. Bank of America Corp DE now owns 1,140,686 shares of the business services provider’s stock worth $98,555,000 after purchasing an additional 127,229 shares during the last quarter. Wellington Management Group LLP purchased a new stake in Stantec in the second quarter valued at approximately $11,908,000. BlackRock Inc. purchased a new stake in Stantec in the second quarter valued at approximately $26,494,000. Quantinno Capital Management LP lifted its position in Stantec by 59.8% during the first quarter. Quantinno Capital Management LP now owns 58,909 shares of the business services provider’s stock valued at $5,090,000 after purchasing an additional 22,036 shares during the last quarter. Finally, Amundi lifted its position in Stantec by 27.2% during the second quarter. Amundi now owns 1,050,103 shares of the business services provider’s stock valued at $86,775,000 after purchasing an additional 224,462 shares during the last quarter. 63.86% of the stock is currently owned by institutional investors.

Stantec Trading Up 13.2%

The company has a quick ratio of 1.50, a current ratio of 1.50 and a debt-to-equity ratio of 0.54. The firm has a market capitalization of $9.36 billion, a P/E ratio of 26.49 and a beta of 0.94. The firm’s 50-day simple moving average is $70.82 and its 200-day simple moving average is $78.65.

About Stantec

Stantec is a global professional services firm that provides engineering, architecture, environmental consulting, and related services. Its work supports the planning, design, and delivery of projects in areas including water, transportation, buildings, energy, and community development. Founded in Edmonton, Alberta, in 1954 as D.R. Stanley Associates, the company later adopted the Stantec name. It is headquartered in Edmonton and serves public- and private-sector clients across North America and in international markets.