On September 17, 2023, it was reported that First Affirmative Financial Network had purchased a new stake in Stantec Inc. The institutional investor acquired 3,076 shares of the business services provider’s stock, with an approximate value of $201,000. This information was disclosed in the company’s Form 13F filing with the Securities and Exchange Commission (SEC).
Stantec Inc., listed on both the New York Stock Exchange (NYSE) and the Toronto Stock Exchange (TSE), is a prominent player in the business services industry. As such, this acquisition by First Affirmative Financial Network demonstrates confidence in Stantec’s financial prospects.
In addition to this investment news, Stantec recently announced a quarterly dividend for its shareholders. Scheduled to be paid on October 16th, this dividend marks an increase from the previous quarter’s payout. Shareholders on record as of September 29th will receive a dividend of $0.147 per share. The ex-dividend date is set for Thursday, September 28th.
This new dividend represents an annualized rate of $0.59 per share and equates to a yield of 0.88%. It is important to note that Stantec’s dividend payout ratio (DPR) stands at 28.79%.
Investors and market watchers may interpret these developments as positive signs for the future performance of Stantec Inc. The purchase by First Affirmative Financial Network suggests confidence in the company’s potential growth and profitability.
As always, it is advisable for investors to carefully analyze market trends and seek professional advice before making any investment decisions.
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Stantec Inc.: Growing Confidence from Hedge Funds and Institutional Investors
Stantec Inc. (NYSE: STN) has been making waves in the investment world as numerous hedge funds and institutional investors increase their stakes in the company. Norges Bank, for instance, purchased a significant stake in Stantec during the fourth quarter of last year, an investment valued at approximately $60,382,000. Vontobel Holding Ltd. also raised its position in Stantec by an impressive 121.1% during the first quarter of this year, now owning over 1.2 million shares worth $71,654,000.
Another player, The Manufacturers Life Insurance Company, decided to boost its stake in Stantec by 38.4% during the same period. This move signifies a growing confidence among big investors that Stantec is poised for future success and growth.
Morgan Stanley also expressed interest in Stantec by increasing its position by 119.8% during the last quarter of 2022. This strategic move allowed Morgan Stanley to own over half a million shares of the business services provider’s stock valued at $28,198,000.
Additionally, Triasima Portfolio Management Inc., a newly acquired hedge fund investor in Stantecs stock portfolio added to its position with an investment valued at $18,456,000 showing that there is still room for newcomers to join in on what appears to be a highly attractive opportunity.
Analysts have taken notice of Stantec’s recent activities as well as its financial performance in various research reports and ratings issued throughout the year. Canaccord Genuity Group recently lowered its rating on Stantec from “buy” to “hold,” while StockNews.com downgraded it from “strong-buy” to “buy.” However, what stands out is that two investment analysts maintained their positive outlook on the stock and assigned it a buy rating.
According to Bloomberg.com data gathered from multiple sources, there seems to be a consensus among analysts that Stantec is a “Moderate Buy” with an average price target of $82.20. This reinforces the notion that despite the slight dip in confidence from some factions, there is still overall optimism surrounding Stantec’s future prospects.
On September 17, 2023, Stantec’s stock opened at $66.69, exhibiting considerable stability in its trading price. Traders and investors have noted that the stock’s 50-day moving average price hovers at around $66.74 while its 200-day moving average stands at $62.23. With a market cap of $7.40 billion and a beta of 0.93, Stantec has performed within acceptable standards not overly volatile nor excessively conservative.
Analyzing Stantec Inc.’s financial performance, it is important to highlight its recent quarterly earnings report released on August 9th this year. The company managed to exceed market expectations by reporting earnings per share (EPS) of $0.74, surpassing analysts’ consensus estimate of $0.70 by a notable margin of $0.04.
Stantec’s net margin currently stands at 4.78%, which indicates a reasonably healthy profitability level and showcases the company’s ability to generate profits relative to its revenue intake.
Furthermore, the company generated revenue amounting to $952.03 million for the quarter, outpacing predictions that projected approximately $915.79 million in revenue during the same period.
Taking into account these impressive figures and with analysts predicting an EPS of 2.62 for the current fiscal year, it becomes clear why many institutional investors are taking new positions or increasing their stakes in Stantec Inc.
As always, potential investors should conduct thorough research before making any investment decisions as company performances can fluctuate over time due to various internal and external factors affecting the industry as well as global economic conditions.
