Barrow Hanley Mewhinney & Strauss LLC, a prominent investment management firm, has recently made significant changes to its holdings in Quanta Services, Inc. (NYSE:PWR). According to their 13F filing with the U.S. Securities and Exchange Commission (SEC), the company reduced its stake in Quanta Services by a staggering 99.7% during the first quarter of this year. At the end of the reporting period, Barrow Hanley Mewhinney & Strauss LLC owned only 1,016 shares of Quanta Services’ stock, after selling around 319,552 shares. This drastic reduction amounted to the firm’s holdings being valued at $169,000.
Quanta Services is a renowned construction company that operates primarily within the energy infrastructure industry. The firm specializes in providing various services such as design, installation, repair, and maintenance for electric power networks and telecommunications systems.
In its most recent earnings report released on August 3rd, Quanta Services disclosed earnings per share (EPS) of $1.47 for the quarter. However, this figure fell short of analysts’ consensus estimate by ($0.06), as they had predicted EPS of $1.53 for the same period. Despite missing expectations marginally, Quanta Services still managed to achieve a net margin of 3.16%. Moreover, it exhibited a return on equity (ROE) of 15.48%, indicating its ability to generate profitable returns for its shareholders.
During the quarter under review, Quanta Services also generated revenue amounting to $5.05 billion compared to market analysts’ projected revenue figure of $4.69 billion. This positive variance suggests that Quanta Services outperformed market expectations in terms of sales figures.
Looking ahead, research analysts are optimistic about Quanta Services’ prospects and anticipate it to post an EPS of 6.47 for the current year on average. This expectation may be driven by the company’s solid financial performance and its relentless efforts to strengthen its position in the energy infrastructure sector.
While Barrow Hanley Mewhinney & Strauss LLC has significantly reduced its stake in Quanta Services, it is essential to note that this action does not necessarily reflect a negative sentiment towards the company. Investment management firms continuously evaluate their portfolios and make adjustments based on various factors such as market conditions and investment strategies.
In conclusion, despite Barrow Hanley Mewhinney & Strauss LLC lowering its stake in Quanta Services, Inc., the construction company showcased promising financial results in its latest earnings report. Quanta Services’ ability to generate revenue above expectations and maintain a reasonable net margin and return on equity demonstrates its potential for future growth within the energy infrastructure industry.
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Hedge Funds Increase Stake in Quanta Services as Stock Fluctuates
[stock_market_widget type=”chart” template=”basic” color=”#3946CE” assets=”PWR” range=”1mo” interval=”1d” axes=”true” cursor=”true” range_selector=”true” api=”yf”]August 26, 2023
Quanta Services’ Stock Experiences Hedge Fund Activity
In recent months, there has been considerable movement within hedge funds regarding their positions in Quanta Services, a leading construction company. Vanguard Group Inc., for instance, has increased its stake in the company by 1.2% during the first quarter of this year. This move saw Vanguard Group Inc. acquire an additional 182,092 shares of Quanta Services’ stock, which is currently valued at $2.02 billion.
Similarly, JPMorgan Chase & Co. grew its position in Quanta Services by 9% during the fourth quarter of last year. The financial institution now owns approximately 6.06 million shares of the construction company’s stock with a market value of $863 million.
FMR LLC also made a significant investment in Quanta Services by increasing their position by 19.7% during the first quarter of this year. As a result, FMR LLC now holds around 4.91 million shares worth $817 million.
State Street Corp and Geode Capital Management LLC have also made moves to increase their positions in Quanta Services, albeit at smaller scales.
Furthermore, it is noteworthy that hedge funds and other institutional investors own about 88.8% of Quanta Services’ stock indicating the high level of activity within the investment community surrounding this construction giant.
Turning our attention to Quanta Services’ stock performance, on Friday it traded up at $205.94 after an increase of $4.38 per share during trading hours. The stock had a trading volume of approximately 181,468 shares compared to its average daily volume of roughly 837,722 shares.
It is worth mentioning that over the span of one year – between August 2022 and August 2023 – Quanta Services’ stock experienced significant fluctuations with a low point recorded as $123.25 and a high of $209.41. These levels demonstrate the volatility of the construction company’s stock in a relatively short period.
Regarding financial ratios, Quanta Services currently has a current ratio of 1.68 and a quick ratio of 1.64, indicating its ability to meet its short-term obligations. Meanwhile, the debt-to-equity ratio stands at 0.74, demonstrating a conservative approach towards leveraging.
At present, Quanta Services holds a market capitalization of approximately $29.9 billion while trading at a price-to-earnings ratio of 51.42 and a beta of 1.08. These figures provide insights into its valuation compared to earnings and its volatility relative to the market index.
Moving on to company news, Vice President Dorothy Upperman sold 4,074 shares of Quanta Services’ stock on June 7th for an average price per share of $183.87, amounting to a total value of $749,086.38. Following this sale, Upperman now directly owns 13,078 shares valued at around $2.40 million.
In addition to Upperman’s sale, Director Bernard Fried also sold 8,000 shares on June 2nd at an average price of $179.84 per share for a total transaction value of $1,438,720. Following this sale, Fried now holds 9,372 shares in Quanta Services with an approximate value of $1.69 million.
It is crucial to note that insiders own about 1.20% of the company’s stock suggesting confidence from key stakeholders in the direction and performance of Quanta Services.
Several research firms have recently shared their opinions on Quanta Services’ stock performance as well. Northland Securities increased their target price from $190 to $210 while StockNews.com initiated coverage on the company with a “hold” rating.
Similarly, DA Davidson raised their target price from $170 to $190 and labeled the stock as “neutral,” while Robert W. Baird increased their target price from $186 to $219 and gave Quanta Services an “outperform” rating.
Lastly, Citigroup upped their price objective from $192 to $234 and rated the stock a “buy.”
Overall, based on data from Bloomberg, Quanta Services has received a consensus rating of “Moderate Buy” with an average target price of approximately $199.91.
In conclusion, hedge funds have made significant changes in their positions within Quanta Services, generating interest within the investment community. The stock has experienced significant fluctuations but has recently traded at higher levels. Company insiders have also been active in selling shares, while research firms offer varied opinions on Quanta Services’ future performance.
