MasTec (MTZ) Stock Rating Lowered by Zacks Investment Research

Zacks Investment Research downgraded shares of MasTec (NYSE:MTZ) from a buy rating to a hold rating in a research report report published on Thursday morning.

According to Zacks, “MasTec reported mixed second-quarter 2018 results, wherein earnings surpassed the Zacks Consensus Estimate while revenues lagged the same. Adjusted earnings grew 1% but revenues declined 14% year over year. The improved earnings are attributable to reduced costs and higher margins in the Oil & Gas segment, despite reporting lower revenues on project delays. Apart from reporting record backlog, its adjusted EBITDA margin improved both sequentially and year over year, given solid performance by Oil & Gas, and Communications segments. MasTec’s increased 2018 guidance for adjusted EBITDA and EPS is also encouraging. Benefits from the tax reform, major expansion in 5G and FirstNet, fiber expansion, and strong pipeline business in the Oil & Gas segment continue to be major growth catalysts. MasTec outperformed the industry on a year-to-date basis. Its 2018 and 2019 earnings estimates have moved north over the past seven days.”

Several other brokerages also recently issued reports on MTZ. Credit Suisse Group dropped their target price on shares of MasTec from $70.00 to $64.00 and set an outperform rating on the stock in a research note on Wednesday, May 2nd. Robert W. Baird reiterated a hold rating and issued a $52.00 target price on shares of MasTec in a research note on Friday, August 3rd. ValuEngine upgraded shares of MasTec from a hold rating to a buy rating in a research note on Thursday, June 21st. Finally, Canaccord Genuity reiterated a buy rating and issued a $65.00 target price on shares of MasTec in a research note on Friday, August 3rd. Two research analysts have rated the stock with a hold rating and twelve have given a buy rating to the company’s stock. The stock currently has a consensus rating of Buy and a consensus target price of $60.08.

Shares of NYSE MTZ traded up $0.45 during midday trading on Thursday, hitting $46.95. The stock had a trading volume of 781,699 shares, compared to its average volume of 1,153,977. The company has a market cap of $3.73 billion, a PE ratio of 17.20, a P/E/G ratio of 0.93 and a beta of 1.56. MasTec has a 52 week low of $38.40 and a 52 week high of $55.53. The company has a debt-to-equity ratio of 1.07, a quick ratio of 1.74 and a current ratio of 1.82.

MasTec (NYSE:MTZ) last issued its earnings results on Thursday, August 2nd. The construction company reported $1.04 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.03 by $0.01. The firm had revenue of $1.62 billion for the quarter, compared to the consensus estimate of $1.79 billion. MasTec had a net margin of 5.05% and a return on equity of 14.84%. The business’s revenue was down 14.4% on a year-over-year basis. During the same quarter in the prior year, the firm posted $1.03 earnings per share. analysts forecast that MasTec will post 3.56 earnings per share for the current fiscal year.

In related news, EVP Cardenas Alberto De sold 10,000 shares of the company’s stock in a transaction on Friday, August 3rd. The shares were sold at an average price of $48.00, for a total transaction of $480,000.00. Following the completion of the transaction, the executive vice president now owns 101,755 shares in the company, valued at $4,884,240. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. 20.10% of the stock is currently owned by corporate insiders.

Institutional investors have recently added to or reduced their stakes in the company. Amalgamated Bank increased its stake in MasTec by 11.5% in the 2nd quarter. Amalgamated Bank now owns 9,926 shares of the construction company’s stock worth $504,000 after buying an additional 1,024 shares during the period. Sheets Smith Wealth Management increased its stake in MasTec by 13.1% in the 2nd quarter. Sheets Smith Wealth Management now owns 9,306 shares of the construction company’s stock worth $472,000 after buying an additional 1,080 shares during the period. Ladenburg Thalmann Financial Services Inc. increased its stake in MasTec by 81.6% in the 4th quarter. Ladenburg Thalmann Financial Services Inc. now owns 2,624 shares of the construction company’s stock worth $128,000 after buying an additional 1,179 shares during the period. Baird Financial Group Inc. increased its stake in MasTec by 3.4% in the 1st quarter. Baird Financial Group Inc. now owns 40,680 shares of the construction company’s stock worth $1,914,000 after buying an additional 1,330 shares during the period. Finally, Janney Montgomery Scott LLC increased its stake in MasTec by 11.4% in the 2nd quarter. Janney Montgomery Scott LLC now owns 14,694 shares of the construction company’s stock worth $746,000 after buying an additional 1,498 shares during the period. Hedge funds and other institutional investors own 81.31% of the company’s stock.

About MasTec

MasTec, Inc, an infrastructure construction company, provides engineering, building, installation, maintenance, and upgrade services for communications, energy, and utility infrastructure primarily in the United States and Canada. It operates through five segments: Communications, Oil and Gas, Electrical Transmission, Power Generation and Industrial, and Other.

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