The Manufacturers Life Insurance Company has decreased its holdings in Sterling Infrastructure, Inc. (NASDAQ: STRL) by 10.7% during the second quarter, according to the company’s latest filing with the Securities and Exchange Commission (SEC). The institutional investor reduced its shares in the construction company by 7,047, leaving it with 58,668 shares, valued at $6.94 million. This represents 0.19% ownership in the company as of the end of the quarter.
Institutional Investor Activity in Sterling Infrastructure
Several other institutional investors have also adjusted their positions in Sterling Infrastructure. Notably, the Healthcare of Ontario Pension Plan Trust Fund increased its investment by 60.6% during the fourth quarter, adding 20,000 shares to bring its total holdings to 53,000 shares, valued at $4.66 million.
Nordea Investment Management AB also raised its stake by 47.1% in the first quarter, acquiring 16,142 additional shares for a total of 50,420 shares, valued at $5.65 million. In addition, Inspire Investing LLC entered the scene with a new position worth approximately $449,000 during the same period.
Principal Financial Group Inc. boosted its holdings by 49.8% in the first quarter, increasing its shares to 26,038, valued at $2.87 million, after acquiring 8,657 additional shares. Robeco Schweiz AG also joined the investor pool in the second quarter, purchasing shares worth $1.42 million. Currently, institutional investors and hedge funds collectively own 80.95% of Sterling Infrastructure’s stock.
Market Performance and Analyst Outlook
Despite growing interest from institutional investors, Sterling Infrastructure faced a slight downgrade in analyst ratings. StockNews.com lowered its rating on the company from “buy” to “hold” in a research note published on September 15.
Sterling Infrastructure’s stock opened at $148.05 on Friday, with a 50-day moving average of $121.67 and a 200-day moving average of $117.11. The company’s market capitalization stands at $4.57 billion, supported by a price-to-earnings ratio (PE) of 30.78, a price-to-earnings-growth (PEG) ratio of 1.76, and a beta of 1.17. Over the past 12 months, the stock has seen a low of $55.45 and a high of $152.00. Financially, the company maintains a debt-to-equity ratio of 0.44, and both its current and quick ratios sit at 1.24.
Strong Financial Performance
Sterling Infrastructure released its latest earnings report on August 5, showing robust performance for the quarter. The company reported earnings per share (EPS) of $1.67, surpassing analysts’ expectations of $1.43 by $0.24. Sterling Infrastructure’s revenue for the quarter reached $582.82 million, higher than the projected $553.70 million. The company reported a return on equity of 25.64% and a net margin of 7.85%. For the same quarter last year, Sterling Infrastructure posted EPS of $1.27. Analysts predict that the company will post an EPS of 5.66 for the current fiscal year.
Insider Activity
In terms of insider activity, Executive Vice President Ronald A. Ballschmiede recently sold 18,700 shares of Sterling Infrastructure stock. The transaction, completed on September 19, saw the shares sold at an average price of $143.59, generating a total of $2.69 million. Following the sale, Ballschmiede now owns 248,471 shares in the company, valued at approximately $35.68 million. Insider trading disclosures filed with the SEC reveal that corporate insiders currently own 3.70% of Sterling Infrastructure’s stock.
With significant institutional and insider activity, Sterling Infrastructure continues to be a key player in the construction sector, demonstrating strong financial performance and investor interest. However, with recent shifts in analyst ratings, the stock’s future movement remains closely watched by market participants.
