Quanta Services (NYSE:PWR) to Repurchase $1.00 billion in Outstanding Shares

Quanta Services (NYSE:PWR) announced that its Board of Directors has authorized a share buyback program on Friday, May 22nd, RTT News reports. The company plans to repurchase $1.00 billion in outstanding shares. This repurchase authorization allows the construction company to repurchase up to 0.9% of its stock through open market purchases. Stock repurchase programs are generally an indication that the company’s board believes its shares are undervalued.

Analyst Upgrades and Downgrades

A number of brokerages recently commented on PWR. Evercore upped their target price on Quanta Services from $635.00 to $800.00 and gave the company an “outperform” rating in a report on Friday, May 1st. Cantor Fitzgerald lifted their price target on shares of Quanta Services from $630.00 to $901.00 and gave the company an “overweight” rating in a report on Monday, May 11th. Truist Financial set a $851.00 price objective on shares of Quanta Services in a report on Friday, May 1st. Bank of America raised their target price on shares of Quanta Services from $500.00 to $610.00 and gave the stock a “buy” rating in a research report on Friday, February 20th. Finally, Robert W. Baird lifted their target price on shares of Quanta Services from $606.00 to $777.00 and gave the company an “outperform” rating in a research note on Friday, May 1st. One analyst has rated the stock with a Strong Buy rating, nineteen have given a Buy rating and seven have given a Hold rating to the company. According to MarketBeat, Quanta Services currently has an average rating of “Moderate Buy” and an average price target of $715.17.

Quanta Services Stock Up 0.8%

PWR traded up $5.69 during trading on Friday, reaching $722.60. The stock had a trading volume of 774,747 shares, compared to its average volume of 1,329,692. The company has a current ratio of 1.14, a quick ratio of 1.09 and a debt-to-equity ratio of 0.57. The company has a market capitalization of $108.43 billion, a price-to-earnings ratio of 99.12, a P/E/G ratio of 2.46 and a beta of 1.24. The stock’s 50 day moving average is $632.01 and its two-hundred day moving average is $528.65. Quanta Services has a one year low of $326.89 and a one year high of $788.75.

Quanta Services (NYSE:PWR) last released 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 net margin of 3.67% and a return on equity of 18.64%. The firm had revenue of $7.87 billion for the quarter, compared to the consensus estimate of $7 billion. During the same period in the prior year, the firm 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. As a group, analysts expect that Quanta Services will post 12.84 earnings per share for the current year.

Quanta Services Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Monday, July 13th. Shareholders of record on Wednesday, July 1st will be paid a dividend of $0.11 per share. The ex-dividend date of this dividend is Wednesday, July 1st. This represents a $0.44 dividend on an annualized basis and a dividend yield of 0.1%. Quanta Services’s dividend payout ratio (DPR) is currently 6.04%.

Insider Activity at Quanta Services

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