Granite Construction (NYSE:GVA) Price Target Lowered to $119.00 at The Goldman Sachs Group

Key Points

• Goldman Sachs cut Granite Construction’s price target to $119 from $139 and maintained a “sell” rating, implying roughly 1.75% downside from the stock’s recent $121.12 price.
• Analyst sentiment remains mixed: the stock has a consensus “moderate buy” rating and an average target of $158.50, with individual targets ranging from $119 to $180.
• Granite reported strong operating growth, including second-quarter revenue of about $1.46 billion and raised 2026 revenue guidance, but a $278 million net loss tied largely to a convertible-notes charge and pressure on materials margins remain concerns.

Granite Construction (NYSE:GVA - Get Free Report) had its price objective lowered by analysts at The Goldman Sachs Group from $139.00 to $119.00 in a report issued on Friday,Benzinga reports. The brokerage presently has a "sell" rating on the construction company's stock. The Goldman Sachs Group's target price would suggest a potential downside of 1.75% from the stock's current price.

A number of other research firms have also recently weighed in on GVA. Wall Street Zen cut shares of Granite Construction from a "buy" rating to a "hold" rating in a research note on Saturday, July 18th. Weiss Ratings cut Granite Construction from a "hold (c+)" rating to a "hold (c)" rating in a research note on Tuesday, July 21st. Oppenheimer raised their price objective on Granite Construction from $170.00 to $180.00 and gave the company an "outperform" rating in a report on Friday. Zacks Research upgraded Granite Construction to a "hold" rating in a research report on Friday, May 29th. Finally, Stephens assumed coverage on Granite Construction in a report on Friday, June 26th. They issued an "overweight" rating and a $180.00 target price for the company. 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 given a Sell rating to the company. Based on data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus target price of $158.50.

Granite Construction Price Performance

Shares of GVA traded up $6.20 during mid-day trading on Friday, reaching $121.12. The company had a trading volume of 657,308 shares, compared to its average volume of 744,980. The company has a market capitalization of $5.30 billion, a price-to-earnings ratio of 34.89 and a beta of 1.29. The company has a debt-to-equity ratio of 0.80, a quick ratio of 0.97 and a current ratio of 1.09. The company's 50 day simple moving average is $136.96 and its 200 day simple moving average is $130.56. Granite Construction has a 1-year low of $89.80 and a 1-year high of $162.08.

Granite Construction (NYSE:GVA - Get Free Report) last released its quarterly earnings data on Thursday, April 30th. The construction company reported $0.26 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of ($0.77) by $1.03. The business had revenue of $912.47 million during the quarter, compared to analysts' expectations of $782.26 million. Granite Construction had a net margin of 3.99% and a return on equity of 24.90%. The firm's quarterly revenue was up 30.4% compared to the same quarter last year. During the same period in the prior year, the company earned $0.01 EPS. Analysts expect that Granite Construction will post 6.14 EPS for the current year.

Insider Transactions at Granite Construction

In other Granite Construction news, Director John Timothy Romer acquired 375 shares of Granite Construction stock in a transaction that occurred on Monday, June 15th. The shares were bought at an average price of $143.65 per share, with a total value of $53,868.75. Following the completion of the purchase, the director directly owned 2,801 shares in the company, valued at $402,363.65. This trade represents a 15.46% increase in their position. The acquisition was disclosed in a document filed with the SEC, which is available at the SEC website. Also, SVP Bradley Jay Williams sold 6,734 shares of the business's stock in a transaction on Monday, June 8th. The stock was sold at an average price of $141.00, for a total transaction of $949,494.00. Following the completion of the sale, the senior vice president directly owned 7,041 shares in the company, valued at approximately $992,781. This represents a 48.89% decrease in their position. The SEC filing for this sale provides additional information. 0.88% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of GVA. First Trust Advisors LP raised its position in shares of Granite Construction by 52.8% during the first quarter. First Trust Advisors LP now owns 1,397,573 shares of the construction company's stock worth $167,541,000 after acquiring an additional 483,080 shares during the last quarter. UBS Group AG boosted its holdings in Granite Construction by 262.8% in the fourth quarter. UBS Group AG now owns 647,589 shares of the construction company's stock valued at $74,699,000 after acquiring an additional 469,079 shares during the last quarter. Price T Rowe Associates Inc. MD boosted its holdings in Granite Construction by 254.5% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 503,906 shares of the construction company's stock valued at $58,126,000 after acquiring an additional 361,741 shares during the last quarter. Norges Bank acquired a new stake in Granite Construction during the 4th quarter valued at approximately $36,405,000. Finally, Qube Research & Technologies Ltd increased its position in Granite Construction by 87.5% during the 3rd quarter. Qube Research & Technologies Ltd now owns 556,054 shares of the construction company's stock valued at $60,971,000 after purchasing an additional 259,477 shares during the period.

Key Headlines Impacting Granite Construction

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

• Positive Sentiment: Second-quarter revenue rose approximately 29% year over year to $1.46 billion, exceeding the roughly $1.41 billion analyst estimate. Adjusted EBITDA increased 22% to about $186 million, indicating continued operating growth. Granite Reports Second Quarter 2026 Results
• Positive Sentiment: Management raised its 2026 revenue guidance to $5.3 billion-$5.5 billion from $5.2 billion-$5.4 billion, supported by federal and state infrastructure funding as well as private-sector demand. Granite Construction's Dip Offers A Solid Entry Point
• Positive Sentiment: One investment analysis described the pullback as an attractive entry opportunity, citing Granite’s growth prospects and valuation. Recent analyst price targets have ranged from $139 to $180, above the stock’s recent trading level. Granite Construction Nears Earnings
• Neutral Sentiment: The company reaffirmed its adjusted EBITDA margin outlook of 12.25%-13.25%, suggesting that higher sales are not yet translating into stronger expected margins. Granite Construction Reports Mixed Q2 Results
• Negative Sentiment: Granite reported a $278 million net loss, or a $6.36 diluted-per-share loss, versus $72 million of net income a year earlier. The loss primarily reflected a roughly $360 million non-operating charge tied to transactions involving its 3.75% convertible notes, overshadowing the strong operating results. Granite Reports Second Quarter 2026 Results
• Negative Sentiment: Reported EPS also missed consensus on an adjusted basis, while the materials segment faced lower margins because of severe Southeast weather and higher quarry-development costs. Recent insider activity was predominantly selling, adding another potential source of investor caution.

About Granite Construction

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.

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