Zacks Research Downgrades Quanta Services (NYSE:PWR) to Hold

Quanta Services (NYSE:PWR) was downgraded by investment analysts at Zacks Research from a “strong-buy” rating to a “hold” rating in a note issued to investors on Monday,Zacks.com reports.

Other analysts have also issued research reports about the stock. Weiss Ratings raised shares of Quanta Services from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Wednesday, May 20th. CICC Research initiated coverage on shares of Quanta Services in a research note on Thursday, May 21st. They issued an “outperform” rating and a $872.00 price objective for the company. Sanford C. Bernstein boosted their target price on shares of Quanta Services from $538.00 to $725.00 and gave the company a “market perform” rating in a report on Tuesday, May 5th. Robert W. Baird increased their target price on Quanta Services from $606.00 to $777.00 and gave the stock an “outperform” rating in a research report on Friday, May 1st. Finally, Citigroup raised their price target on Quanta Services from $640.00 to $733.00 and gave the stock a “buy” rating in a report on Monday, April 27th. Nineteen equities research analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average target price of $755.18.

Quanta Services Trading Down 2.6%

Shares of PWR stock opened at $656.48 on Monday. The company has a debt-to-equity ratio of 0.57, a quick ratio of 1.09 and a current ratio of 1.14. The company 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. Quanta Services has a 52-week low of $363.01 and a 52-week high of $788.75. The company has a 50-day simple moving average of $712.92 and a two-hundred day simple moving average of $587.03.

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

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

Insider Activity

In other Quanta Services news, CEO Earl C. Jr. Austin sold 130,000 shares of the stock in a transaction that occurred on Tuesday, May 5th. The shares were sold at an average price of $770.65, for a total transaction of $100,184,500.00. Following the transaction, the chief executive officer directly owned 556,911 shares in the company, valued at $429,183,462.15. This trade represents a 18.93% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CAO Paul Nobel sold 4,000 shares of Quanta Services stock in a transaction that occurred 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 transaction, the chief accounting officer directly owned 8,080 shares in the company, valued at $6,116,398.40. This trade represents a 33.11% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 159,992 shares of company stock worth $123,244,714 over the last quarter. Corporate insiders own 0.60% of the company’s stock.

Institutional Trading of Quanta Services

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

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.