Granite Construction (NYSE:GVA) Sets New 1-Year High Following Better-Than-Expected Earnings

Key Points

• Stock hit a new 52-week high after Granite reported EPS of $0.26 versus a consensus of ($0.61) and revenue up 30.4% year‑over‑year, with the stock trading as high as $137.82 and rising about 11.9%.
• The company paid a quarterly dividend of $0.13 per share (annualized $0.52), implying a yield of roughly 0.4% and a dividend payout ratio of about 14.2%.
• Analysts have raised targets (DA Davidson to $155; Goldman to $124), leaving a MarketBeat consensus of "Moderate Buy" with an average price target of $139.50, while insiders (including the CEO and CFO) have recently sold shares, modestly reducing their ownership.

Granite Construction Incorporated (NYSE:GVA - Get Free Report)'s share price reached a new 52-week high on Thursday following a stronger than expected earnings report. The company traded as high as $137.82 and last traded at $137.1320, with a volume of 1112454 shares traded. The stock had previously closed at $122.55.

The construction company reported $0.26 EPS for the quarter, topping the consensus estimate of ($0.61) by $0.87. Granite Construction had a return on equity of 24.10% and a net margin of 4.36%.During the same quarter in the prior year, the company posted $0.01 EPS. Granite Construction's revenue for the quarter was up 30.4% on a year-over-year basis.

Granite Construction Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, April 15th. Stockholders of record on Tuesday, March 31st were paid a dividend of $0.13 per share. The ex-dividend date was Tuesday, March 31st. This represents a $0.52 dividend on an annualized basis and a dividend yield of 0.4%. Granite Construction's dividend payout ratio (DPR) is currently 14.21%.

Analysts Set New Price Targets

A number of research firms have recently issued reports on GVA. DA Davidson increased their price objective on shares of Granite Construction from $130.00 to $155.00 and gave the company a "buy" rating in a research note on Friday, February 13th. The Goldman Sachs Group increased their price objective on shares of Granite Construction from $109.00 to $124.00 and gave the company a "neutral" rating in a research note on Wednesday, January 28th. Wall Street Zen upgraded shares of Granite Construction from a "hold" rating to a "buy" rating in a research note on Saturday, February 28th. Finally, Zacks Research upgraded shares of Granite Construction from a "strong sell" rating to a "hold" rating in a research note on Monday, January 12th. Two analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the stock. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average price target of $139.50.

Insider Activity at Granite Construction

In other Granite Construction news, CEO Kyle T. Larkin sold 26,651 shares of the firm's stock in a transaction that occurred on Friday, March 27th. The shares were sold at an average price of $118.12, for a total value of $3,148,016.12. Following the completion of the sale, the chief executive officer directly owned 114,881 shares in the company, valued at $13,569,743.72. This trade represents a 18.83% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CFO Staci M. Woolsey sold 1,523 shares of the firm's stock in a transaction that occurred on Thursday, March 19th. The shares were sold at an average price of $119.84, for a total transaction of $182,516.32. Following the completion of the sale, the chief financial officer owned 18,954 shares of the company's stock, valued at approximately $2,271,447.36. This trade represents a 7.44% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders sold 35,488 shares of company stock valued at $4,207,042. 1.00% of the stock is owned by insiders.

Institutional Investors Weigh In On Granite Construction

Institutional investors have recently bought and sold shares of the company. AlphaQuest LLC raised its holdings in shares of Granite Construction by 41.5% in the third quarter. AlphaQuest LLC now owns 38,809 shares of the construction company's stock worth $4,255,000 after buying an additional 11,385 shares during the last quarter. 12th Street Asset Management Company LLC purchased a new position in shares of Granite Construction in the third quarter worth $6,799,000. Oliver Luxxe Assets LLC purchased a new position in shares of Granite Construction in the fourth quarter worth $1,783,000. Boothbay Fund Management LLC raised its holdings in shares of Granite Construction by 9.1% in the third quarter. Boothbay Fund Management LLC now owns 160,331 shares of the construction company's stock worth $17,580,000 after buying an additional 13,401 shares during the last quarter. Finally, Elo Mutual Pension Insurance Co purchased a new position in shares of Granite Construction in the third quarter worth $2,013,000.

Granite Construction Trading Up 11.9%

The stock's fifty day simple moving average is $125.16 and its 200-day simple moving average is $117.71. The firm has a market cap of $6.00 billion, a PE ratio of 37.47 and a beta of 1.30. The company has a debt-to-equity ratio of 0.79, a current ratio of 1.22 and a quick ratio of 1.13.

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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