Granite Construction (NYSE:GVA) Shares Down 5.1% – Here’s Why

Granite Construction Incorporated (NYSE:GVA) shares fell 5.1% during trading on Thursday . The company traded as low as $136.30 and last traded at $136.1660. Approximately 107,414 shares changed hands during trading, a decline of 85% from the average daily volume of 699,577 shares. The stock had previously closed at $143.52.

Key Stories Impacting Granite Construction

Here are the key news stories impacting Granite Construction this week:

• Negative Sentiment: Goldman Sachs reiterated a sell rating on Granite Construction and lowered its price target to $139 from $141, signaling limited upside and a more cautious view on the company’s near-term prospects.
• Negative Sentiment: Granite Construction was also downgraded by another analyst, adding to the pressure on the stock and reinforcing concerns about the infrastructure outlook.
• Neutral Sentiment: The company announced redemption of its 2028 convertible notes, a balance-sheet event that should reduce future debt obligations but is unlikely to be the main driver of trading today. Granite Construction Announces Redemption of 2028 Convertible Notes

Analyst Upgrades and Downgrades

A number of equities research analysts have recently weighed in on GVA shares. Oppenheimer began coverage on Granite Construction in a research report on Thursday, May 28th. They issued an “outperform” rating and a $170.00 price objective on the stock. Wall Street Zen upgraded Granite Construction from a “hold” rating to a “buy” rating in a report on Saturday, June 27th. The Goldman Sachs Group reaffirmed a “sell” rating and issued a $139.00 price target (down from $141.00) on shares of Granite Construction in a research note on Thursday. Weiss Ratings upgraded shares of Granite Construction from a “hold (c)” rating to a “hold (c+)” rating in a report on Monday. Finally, Zacks Research raised shares of Granite Construction to a “hold” rating in a research report on Friday, May 29th. One analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $161.00.

Granite Construction Stock Down 2.1%

The company has a quick ratio of 0.97, a current ratio of 1.09 and a debt-to-equity ratio of 0.80. The company’s fifty day simple moving average is $141.41 and its 200 day simple moving average is $130.07. The firm has a market capitalization of $5.38 billion, a PE ratio of 35.43 and a beta of 1.29.

Granite Construction (NYSE:GVA) last posted its earnings results on Thursday, April 30th. The construction company reported $0.26 earnings per share for the quarter, topping analysts’ consensus estimates of ($0.77) by $1.03. Granite Construction had a return on equity of 24.90% and a net margin of 3.99%.The firm had revenue of $912.47 million for the quarter, compared to the consensus estimate of $782.26 million. During the same quarter in the prior year, the business earned $0.01 EPS. The business’s revenue for the quarter was up 30.4% on a year-over-year basis. Analysts anticipate that Granite Construction Incorporated will post 6.14 earnings per share for the current fiscal year.

Granite Construction Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Wednesday, July 15th. Investors of record on Tuesday, June 30th will be given a dividend of $0.13 per share. The ex-dividend date is Tuesday, June 30th. This represents a $0.52 annualized dividend and a dividend yield of 0.4%. Granite Construction’s payout ratio is currently 14.99%.

Insider Buying and Selling

In other Granite Construction news, SVP Michael G. Tatusko sold 7,500 shares of the stock in a transaction on Monday, June 8th. The stock was sold at an average price of $141.00, for a total value of $1,057,500.00. Following the completion of the transaction, the senior vice president owned 29,787 shares in the company, valued at approximately $4,199,967. This represents a 20.11% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, Director John Timothy Romer acquired 375 shares of the stock in a transaction on Monday, June 15th. The shares were purchased at an average cost of $143.65 per share, with a total value of $53,868.75. Following the transaction, the director directly owned 2,801 shares of the company’s stock, valued at approximately $402,363.65. This trade represents a 15.46% increase in their position. The SEC filing for this purchase provides additional information. 0.88% of the stock is owned by insiders.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the business. Aster Capital Management DIFC Ltd grew its holdings in Granite Construction by 512.8% in the fourth quarter. Aster Capital Management DIFC Ltd now owns 239 shares of the construction company’s stock worth $28,000 after purchasing an additional 200 shares during the period. Newbridge Financial Services Group Inc. bought a new position in shares of Granite Construction during the fourth quarter valued at approximately $29,000. Spire Wealth Management purchased a new position in shares of Granite Construction during the fourth quarter valued at approximately $46,000. Root Financial Partners LLC lifted its holdings in shares of Granite Construction by 30.9% during the first quarter. Root Financial Partners LLC now owns 381 shares of the construction company’s stock valued at $46,000 after purchasing an additional 90 shares during the last quarter. Finally, Torren Management LLC bought a new stake in shares of Granite Construction in the 4th quarter worth approximately $56,000.

Granite Construction Company Profile

Granite Construction Inc is a publicly traded heavy civil contractor and construction materials producer based in Watsonville, California. The company specializes in delivering large-scale infrastructure projects for government and private clients, focusing on the development, rehabilitation and maintenance of transportation, water resource and industrial facilities. Its turnkey solutions span the full project lifecycle, from preconstruction and design-build to construction management and facilities maintenance.

In its construction segment, Granite undertakes highway and bridge building, airport runway and taxiway construction, marine terminal and port improvements, dam and reservoir projects, transit systems and underground utilities.