Granite Construction (NYSE:GVA) Stock Price Crosses Above 200-Day Moving Average - Should You Sell?

Key Points

• Shares crossed above the 200-day moving average (200-day MA $116.40), trading as high as $127.50 and last at $127.13 on volume of about 352,437 shares.
• Analyst sentiment is positive with a consensus of "Moderate Buy" and an average price target of $139.50; DA Davidson raised its target to $155 (buy) while Goldman increased its target to $124 (neutral).
• Fundamentals show an earnings beat (EPS $1.40 vs. $1.34) and 19.2% revenue growth to $1.17B, plus a $0.13 quarterly dividend, but insiders have sold roughly 35,488 shares (~$4.2M) in the past 90 days (insiders own ~1%).

Shares of Granite Construction Incorporated (NYSE:GVA - Get Free Report) passed above its 200-day moving average during trading on Monday . The stock has a 200-day moving average of $116.40 and traded as high as $127.50. Granite Construction shares last traded at $127.1280, with a volume of 352,437 shares trading hands.

Wall Street Analyst Weigh In

Several research analysts have recently weighed in on GVA shares. DA Davidson boosted their target price on Granite Construction from $130.00 to $155.00 and gave the stock a "buy" rating in a report on Friday, February 13th. The Goldman Sachs Group increased their price target on Granite Construction from $109.00 to $124.00 and gave the company a "neutral" rating in a report on Wednesday, January 28th. Zacks Research upgraded Granite Construction from a "strong sell" rating to a "hold" rating in a research report on Monday, January 12th. Wall Street Zen raised Granite Construction from a "hold" rating to a "buy" rating in a research note on Saturday, February 28th. Finally, Weiss Ratings restated a "buy (b)" rating on shares of Granite Construction in a report on Monday, December 29th. Two analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company's stock. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average price target of $139.50.

Granite Construction Stock Performance

The company has a debt-to-equity ratio of 0.79, a current ratio of 1.22 and a quick ratio of 1.13. The company has a market cap of $5.53 billion, a price-to-earnings ratio of 34.73 and a beta of 1.30. The firm has a 50 day simple moving average of $126.47 and a 200-day simple moving average of $116.40.

Granite Construction (NYSE:GVA - Get Free Report) last announced its quarterly earnings results on Thursday, February 12th. The construction company reported $1.40 EPS for the quarter, beating the consensus estimate of $1.34 by $0.06. The business had revenue of $1.17 billion for the quarter, compared to analyst estimates of $1.15 billion. Granite Construction had a return on equity of 24.10% and a net margin of 4.36%.The company's quarterly revenue was up 19.2% on a year-over-year basis. During the same quarter in the prior year, the company posted $1.23 EPS. As a group, analysts predict that Granite Construction Incorporated will post 5.49 EPS for the current fiscal year.

Granite Construction Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Wednesday, April 15th. Shareholders of record on Tuesday, March 31st will be given a $0.13 dividend. The ex-dividend date of this dividend is Tuesday, March 31st. This represents a $0.52 dividend on an annualized basis and a yield of 0.4%. Granite Construction's dividend payout ratio is presently 14.21%.

Insider Activity

In other Granite Construction news, CFO Staci M. Woolsey sold 1,523 shares of the stock in a transaction dated 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 transaction, the chief financial officer owned 18,954 shares of the company's stock, valued at $2,271,447.36. This trade represents a 7.44% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, CEO Kyle T. Larkin sold 26,651 shares of the business'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 transaction 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 SEC filing for this sale provides additional information. In the last ninety days, insiders have sold 35,488 shares of company stock valued at $4,207,042. 1.00% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the company. AlphaQuest LLC raised its holdings in shares of Granite Construction by 41.5% in the 3rd quarter. AlphaQuest LLC now owns 38,809 shares of the construction company's stock valued at $4,255,000 after buying an additional 11,385 shares during the period. 12th Street Asset Management Company LLC acquired a new position in Granite Construction during the 3rd quarter worth about $6,799,000. Oliver Luxxe Assets LLC purchased a new position in Granite Construction during the 4th quarter valued at about $1,783,000. Boothbay Fund Management LLC boosted its holdings in Granite Construction by 9.1% during the 3rd quarter. Boothbay Fund Management LLC now owns 160,331 shares of the construction company's stock valued at $17,580,000 after acquiring an additional 13,401 shares during the period. Finally, Elo Mutual Pension Insurance Co acquired a new position in Granite Construction in the 3rd quarter valued at about $2,013,000.

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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