Zacks Investment Research Downgrades Granite Construction Inc. (GVA) to Sell
According to Zacks, “Granite Construction, Inc. is a diversified heavy civil constractor and construction materials producer. The Company concentrates on ifrastructure projects including roads, bridges, dams, tunnels, canals and rapid transit facilities. The Company also manufactures asphalt, concrete base rock and other construction materials. The Company has offices in Arizona, Nevada, Utah, Texas, Georgia and California. “
GVA has been the subject of several other research reports. Seaport Global Securities upgraded shares of Granite Construction from a neutral rating to a buy rating and increased their target price for the company from $49.00 to $60.00 in a report on Monday, August 1st. MKM Partners raised their price objective on shares of Granite Construction from $55.00 to $56.00 and gave the stock a buy rating in a report on Monday, August 1st. FBR & Co raised their price objective on shares of Granite Construction from $48.00 to $60.00 and gave the stock an outperform rating in a report on Tuesday, August 2nd. Janney Montgomery Scott restated a hold rating and set a $53.00 price objective on shares of Granite Construction in a report on Tuesday, August 16th. Finally, DA Davidson restated a hold rating and set a $53.00 price objective on shares of Granite Construction in a report on Tuesday, August 16th. One equities research analyst has rated the stock with a sell rating, two have issued a hold rating and seven have assigned a buy rating to the stock. The stock currently has an average rating of Buy and a consensus target price of $53.70.
Shares of Granite Construction (NYSE:GVA) opened at 48.45 on Wednesday. Granite Construction has a one year low of $30.14 and a one year high of $51.35. The company has a market cap of $1.92 billion, a P/E ratio of 31.16 and a beta of 1.49. The stock’s 50 day moving average is $48.10 and its 200-day moving average is $46.50.
Granite Construction (NYSE:GVA) last announced its earnings results on Friday, July 29th. The company reported $0.35 EPS for the quarter, missing the Thomson Reuters’ consensus estimate of $0.47 by $0.12. The firm earned $604.60 million during the quarter, compared to analysts’ expectations of $632.12 million. Granite Construction had a net margin of 2.57% and a return on equity of 7.27%. The business’s revenue for the quarter was up 6.2% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.24 EPS. Equities research analysts forecast that Granite Construction will post $1.57 earnings per share for the current year.
The firm also recently announced a quarterly dividend, which will be paid on Friday, October 14th. Stockholders of record on Friday, September 30th will be paid a $0.13 dividend. The ex-dividend date is Wednesday, September 28th. This represents a $0.52 annualized dividend and a dividend yield of 1.07%. Granite Construction’s payout ratio is 33.33%.
In other news, Director David H. Kelsey sold 1,113 shares of the firm’s stock in a transaction that occurred on Tuesday, August 9th. The shares were sold at an average price of $51.09, for a total value of $56,863.17. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director James Hildebrand Roberts sold 6,612 shares of the firm’s stock in a transaction that occurred on Wednesday, September 7th. The shares were sold at an average price of $49.18, for a total transaction of $325,178.16. Following the completion of the transaction, the director now owns 51,705 shares of the company’s stock, valued at $2,542,851.90. The disclosure for this sale can be found here. 1.30% of the stock is currently owned by insiders.
Institutional investors have recently added to or reduced their stakes in the stock. Cutler Group LP purchased a new position in Granite Construction during the first quarter worth approximately $100,000. LS Investment Advisors LLC raised its position in Granite Construction by 76.1% in the second quarter. LS Investment Advisors LLC now owns 2,453 shares of the company’s stock worth $112,000 after buying an additional 1,060 shares during the period. Advisor Group Inc. purchased a new position in Granite Construction during the second quarter worth approximately $169,000. Barclays PLC raised its position in Granite Construction by 578.8% in the second quarter. Barclays PLC now owns 3,808 shares of the company’s stock worth $174,000 after buying an additional 3,247 shares during the period. Finally, Amalgamated Bank raised its position in Granite Construction by 9.0% in the second quarter. Amalgamated Bank now owns 4,800 shares of the company’s stock worth $239,000 after buying an additional 395 shares during the period. Institutional investors own 93.18% of the company’s stock.
About Granite Construction
Granite Construction Incorporated is a heavy civil contractor and construction materials producer in the United States. The Company operates through three segments: Construction, Large Project Construction and Construction Materials. Its Construction segment performs construction management, as well as various civil construction projects with a portion of the work focused on new construction and improvement of streets, roads, highways, bridges, site work, underground, power-related facilities, water-related facilities, utilities and other infrastructure projects.
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