Encompass Capital Advisors LLC Decreases Stock Position in Primoris Services Corporation $PRIM

Key Points

• Encompass Capital Advisors cut its Primoris Services stake by 22.7% in the fourth quarter, selling 84,893 shares and leaving it with 289,907 shares valued at about $36 million.
• Several company insiders also sold shares recently, including Director David Lee King and insider John M. Perisich, both reducing their positions by more than 50%.
• Primoris Services reported weaker-than-expected quarterly results, with EPS of $0.59 versus $0.87 expected and revenue of $1.56 billion versus $1.73 billion expected, though the company reaffirmed FY 2026 EPS guidance of 4.80 to 5.00.

Encompass Capital Advisors LLC lessened its stake in shares of Primoris Services Corporation (NYSE:PRIM - Free Report) by 22.7% during the 4th quarter, according to its most recent 13F filing with the SEC. The firm owned 289,907 shares of the company's stock after selling 84,893 shares during the period. Primoris Services makes up approximately 1.5% of Encompass Capital Advisors LLC's holdings, making the stock its 24th largest holding. Encompass Capital Advisors LLC owned approximately 0.54% of Primoris Services worth $35,989,000 at the end of the most recent reporting period.

Other hedge funds and other institutional investors have also bought and sold shares of the company. Harbour Investments Inc. purchased a new stake in Primoris Services in the fourth quarter worth $33,000. Salomon & Ludwin LLC purchased a new stake in Primoris Services in the fourth quarter worth $44,000. Cullen Frost Bankers Inc. increased its stake in Primoris Services by 30.1% in the fourth quarter. Cullen Frost Bankers Inc. now owns 350 shares of the company's stock worth $43,000 after purchasing an additional 81 shares during the period. GAMMA Investing LLC increased its stake in Primoris Services by 120.4% in the fourth quarter. GAMMA Investing LLC now owns 357 shares of the company's stock worth $44,000 after purchasing an additional 195 shares during the period. Finally, Osterweis Capital Management Inc. purchased a new stake in Primoris Services in the second quarter worth $34,000. Hedge funds and other institutional investors own 91.82% of the company's stock.

Insider Transactions at Primoris Services

In related news, Director David Lee King sold 20,000 shares of the firm's stock in a transaction dated Tuesday, May 26th. The stock was sold at an average price of $119.09, for a total transaction of $2,381,800.00. Following the sale, the director owned 14,941 shares of the company's stock, valued at $1,779,323.69. This trade represents a 57.24% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, insider John M. Perisich sold 29,707 shares of the firm's stock in a transaction dated Thursday, May 28th. The shares were sold at an average price of $127.86, for a total value of $3,798,337.02. Following the sale, the insider directly owned 27,574 shares in the company, valued at approximately $3,525,611.64. The trade was a 51.86% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 1.10% of the stock is owned by company insiders.

Wall Street Analyst Weigh In

A number of research firms have weighed in on PRIM. Guggenheim increased their target price on Primoris Services from $184.00 to $195.00 and gave the stock a "buy" rating in a research note on Monday, April 20th. Wall Street Zen downgraded Primoris Services from a "buy" rating to a "hold" rating in a research report on Saturday, February 28th. Needham & Company LLC dropped their price target on Primoris Services from $205.00 to $188.00 and set a "buy" rating on the stock in a research report on Friday, May 8th. Wells Fargo & Company dropped their price target on Primoris Services from $168.00 to $118.00 and set an "equal weight" rating on the stock in a research report on Friday, May 8th. Finally, JPMorgan Chase & Co. increased their price target on Primoris Services from $165.00 to $171.00 and gave the stock a "neutral" rating in a research report on Wednesday, April 1st. One research analyst has rated the stock with a Strong Buy rating, ten have assigned a Buy rating, four have issued a Hold rating and two have given a Sell rating to the company's stock. According to MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average price target of $153.93.

Primoris Services Price Performance

PRIM opened at $101.57 on Thursday. Primoris Services Corporation has a 12-month low of $73.62 and a 12-month high of $205.50. The company has a current ratio of 1.28, a quick ratio of 1.28 and a debt-to-equity ratio of 0.24. The business's fifty day simple moving average is $133.77 and its 200-day simple moving average is $138.87. The company has a market capitalization of $5.51 billion, a price-to-earnings ratio of 22.37 and a beta of 1.36.

Primoris Services (NYSE:PRIM - Get Free Report) last posted its quarterly earnings results on Tuesday, May 5th. The company reported $0.59 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.87 by ($0.28). Primoris Services had a return on equity of 16.48% and a net margin of 3.31%.The firm had revenue of $1.56 billion for the quarter, compared to the consensus estimate of $1.73 billion. During the same period in the previous year, the company posted $0.98 EPS. Primoris Services's quarterly revenue was down 5.4% compared to the same quarter last year. Primoris Services has set its FY 2026 guidance at 4.800-5.000 EPS. On average, equities research analysts anticipate that Primoris Services Corporation will post 4.55 earnings per share for the current fiscal year.

Primoris Services Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, July 15th. Investors of record on Tuesday, June 30th will be given a dividend of $0.08 per share. The ex-dividend date of this dividend is Tuesday, June 30th. This represents a $0.32 dividend on an annualized basis and a yield of 0.3%. Primoris Services's dividend payout ratio (DPR) is presently 7.05%.

Primoris Services Profile

Primoris Services Corporation, a specialty contractor company, provides a range of construction, fabrication, maintenance, replacement, and engineering services in the United States and Canada. It operates through three segments: Utilities, Energy/Renewables, and Pipeline Services. The Utilities segment offers installation and maintenance services for new and existing natural gas distribution systems, electric utility distribution and transmission systems, and communications systems. The Energy/Renewables segment provides a range of services, including engineering, procurement, and construction, as well as retrofits, highway and bridge construction, demolition, site work, soil stabilization, mass excavation, flood control, upgrades, repairs, outages, and maintenance services to renewable energy and energy storage, renewable fuels, petroleum, refining, and petrochemical industries, as well as state departments of transportation.

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