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

Shares of Stantec Inc. (NYSE:STN) (TSE:STN) gapped up prior to trading 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 trading hands.

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

Analyst Ratings Changes

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

Institutional Investors Weigh In On Stantec

A number of hedge funds have recently made changes to their positions in the business. BRITISH COLUMBIA INVESTMENT MANAGEMENT Corp grew its holdings in shares of Stantec by 12.8% during the 3rd quarter. BRITISH COLUMBIA INVESTMENT MANAGEMENT Corp now owns 158,572 shares of the business services provider’s stock valued at $10,691,000 after purchasing an additional 18,017 shares during the last quarter. Advisors Asset Management Inc. purchased a new position in Stantec in the 3rd quarter worth $5,290,000. Independent Advisor Alliance purchased a new position in Stantec in the 3rd quarter worth $465,000. Voya Investment Management LLC lifted its stake in Stantec by 0.9% in the third quarter. Voya Investment Management LLC now owns 58,097 shares of the business services provider’s stock worth $3,926,000 after purchasing an additional 538 shares during the last quarter. Finally, Public Sector Pension Investment Board lifted its stake in Stantec by 2.8% in the third quarter. Public Sector Pension Investment Board now owns 7,224 shares of the business services provider’s stock worth $488,000 after purchasing an additional 200 shares during the last quarter. 63.86% of the stock is currently owned by institutional investors.

Stantec Price Performance

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

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.