Is PWR Stock A Buy or Sell?

The latest 13F reporting period has come and gone, and Insider Monkey is again at the forefront when it comes to making use of this gold mine of data. We have processed the filings of the more than 887 world-class investment firms that we track and now have access to the collective wisdom contained in these filings, which are based on their December 31st holdings, data that is available nowhere else. Should you consider Quanta Services Inc (NYSE:PWR) for your portfolio? We’ll look to this invaluable collective wisdom for the answer.

Is PWR stock a buy or sell? Quanta Services Inc (NYSE:PWR) has experienced an increase in support from the world’s most elite money managers lately. Quanta Services Inc (NYSE:PWR) was in 33 hedge funds’ portfolios at the end of December. The all time high for this statistic is 44. There were 32 hedge funds in our database with PWR positions at the end of the third quarter. Our calculations also showed that PWR isn’t among the 30 most popular stocks among hedge funds (click for Q4 rankings).

At Insider Monkey we leave no stone unturned when looking for the next great investment idea. For example, the House passed a landmark bill decriminalizing marijuana. So, we are checking out this under the radar cannabis stock right now. We go through lists like the 10 best battery stocks to buy to identify the next stock with 10x upside potential. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our website. Keeping this in mind let’s review the new hedge fund action encompassing Quanta Services Inc (NYSE:PWR).

Do Hedge Funds Think PWR Is A Good Stock To Buy Now?

At Q4’s end, a total of 33 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 3% from the previous quarter. On the other hand, there were a total of 44 hedge funds with a bullish position in PWR a year ago. So, let’s find out which hedge funds were among the top holders of the stock and which hedge funds were making big moves.

According to publicly available hedge fund and institutional investor holdings data compiled by Insider Monkey, William Harnisch’s Peconic Partners LLC has the biggest position in Quanta Services Inc (NYSE:PWR), worth close to $388.3 million, accounting for 46.5% of its total 13F portfolio. The second largest stake is held by Lyrical Asset Management, led by Andrew Wellington and Jeff Keswin, holding a $242.7 million position; 3.3% of its 13F portfolio is allocated to the company. Other peers with similar optimism contain Cliff Asness’s AQR Capital Management, Aaron Cowen’s Suvretta Capital Management and Jos Shaver’s Electron Capital Partners. In terms of the portfolio weights assigned to each position Peconic Partners LLC allocated the biggest weight to Quanta Services Inc (NYSE:PWR), around 46.55% of its 13F portfolio. Hill City Capital is also relatively very bullish on the stock, dishing out 3.91 percent of its 13F equity portfolio to PWR.

As industrywide interest jumped, some big names were breaking ground themselves. Suvretta Capital Management, managed by Aaron Cowen, created the largest position in Quanta Services Inc (NYSE:PWR). Suvretta Capital Management had $62.1 million invested in the company at the end of the quarter. Dmitry Balyasny’s Balyasny Asset Management also made a $12.1 million investment in the stock during the quarter. The other funds with brand new PWR positions are Alexander Mitchell’s Scopus Asset Management, Herbert Frazier’s Hill City Capital, and Richard Schimel and Lawrence Sapanski’s Cinctive Capital Management.

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Quanta Services Inc (NYSE:PWR) but similarly valued. These stocks are Globe Life Inc. (NYSE:GL), Morningstar, Inc. (NASDAQ:MORN), Fastly, Inc. (NYSE:FSLY), Molson Coors Beverage Company (NYSE:TAP), Algonquin Power & Utilities Corp. (NYSE:AQN), Gaming and Leisure Properties Inc (NASDAQ:GLPI), and Dolby Laboratories, Inc. (NYSE:DLB). This group of stocks’ market caps are similar to PWR’s market cap.

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As you can see these stocks had an average of 28.6 hedge funds with bullish positions and the average amount invested in these stocks was $807 million. That figure was $973 million in PWR’s case. Molson Coors Beverage Company (NYSE:TAP) is the most popular stock in this table. On the other hand Algonquin Power & Utilities Corp. (NYSE:AQN) is the least popular one with only 15 bullish hedge fund positions. Quanta Services Inc (NYSE:PWR) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for PWR is 66. Stocks with higher number of hedge fund positions relative to other stocks as well as relative to their historical range receive a higher sentiment score. Our calculations showed that top 30 most popular stocks among hedge funds returned 81.2% in 2019 and 2020, and outperformed the S&P 500 ETF (SPY) by 26 percentage points. These stocks gained 7.9% in 2021 through April 1st and still beat the market by 0.4 percentage points. Hedge funds were also right about betting on PWR as the stock returned 23.8% since the end of Q4 (through 4/1) and outperformed the market. Hedge funds were rewarded for their relative bullishness.

Disclosure: None. This article was originally published at Insider Monkey.