Granite Construction (NYSE:GVA) Trading Down 5.1% - What's Next?

Key Points

• Granite Construction shares fell 5.1% in midday trading, with volume well below normal. The stock traded as low as $136.30, down from the prior close of $143.52.
• Analysts remain mixed on the stock, but the overall view is Moderate Buy with an average price target of $161. Recent calls ranged from Goldman Sachs’ sell rating and $139 target to Stephens’ overweight rating and $180 target.
• The company posted strong quarterly results, beating estimates with EPS of $0.26 versus a forecast loss and revenue of $912.47 million, up 30.4% year over year. Granite also declared a quarterly dividend of $0.13 per share, payable July 15.

Granite Construction Incorporated (NYSE:GVA - Get Free Report) was down 5.1% during mid-day trading on Thursday . The company traded as low as $136.30 and last traded at $136.1660. Approximately 107,414 shares were traded during mid-day trading, a decline of 85% from the average daily volume of 699,577 shares. The stock had previously closed at $143.52.

Wall Street Analysts Forecast Growth

Several research firms have commented on GVA. Wall Street Zen raised shares of Granite Construction from a "hold" rating to a "buy" rating in a report on Saturday, June 27th. The Goldman Sachs Group reaffirmed a "sell" rating and issued a $139.00 target price (down from $141.00) on shares of Granite Construction in a report on Thursday. Stephens began coverage on Granite Construction in a research report on Friday, June 26th. They issued an "overweight" rating and a $180.00 target price on the stock. Weiss Ratings raised Granite Construction from a "hold (c)" rating to a "hold (c+)" rating in a research note on Monday. Finally, Oppenheimer started coverage on Granite Construction in a report on Thursday, May 28th. They set an "outperform" rating and a $170.00 price target for the company. One investment analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average target price of $161.00.

Granite Construction Stock Down 11.0%

The company has a 50 day simple moving average of $141.37 and a two-hundred day simple moving average of $130.05. The company has a quick ratio of 0.97, a current ratio of 1.09 and a debt-to-equity ratio of 0.80. The company has a market capitalization of $5.59 billion, a P/E ratio of 36.95 and a beta of 1.29.

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

Granite Construction Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, July 15th. Investors of record on Tuesday, June 30th will be given a $0.13 dividend. The ex-dividend date is Tuesday, June 30th. This represents a $0.52 dividend on an annualized basis and a yield of 0.4%. Granite Construction's dividend payout ratio (DPR) is currently 14.99%.

Insiders Place Their Bets

In other Granite Construction news, SVP Bradley Jay Williams sold 6,734 shares of Granite Construction stock in a transaction on Monday, June 8th. The shares were sold at an average price of $141.00, for a total transaction of $949,494.00. Following the completion of the transaction, the senior vice president directly owned 7,041 shares of the company's stock, valued at $992,781. The trade was a 48.89% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director John Timothy Romer bought 375 shares of Granite Construction stock in a transaction dated Monday, June 15th. The stock was purchased at an average cost of $143.65 per share, for a total transaction of $53,868.75. Following the purchase, the director owned 2,801 shares of the company's stock, valued at approximately $402,363.65. This trade represents a 15.46% increase in their position. The disclosure for this purchase is available in the SEC filing. 0.88% of the stock is owned by insiders.

Institutional Trading of Granite Construction

Institutional investors have recently added to or reduced their stakes in the company. Millennium Management LLC raised its holdings in shares of Granite Construction by 8.9% in the third quarter. Millennium Management LLC now owns 1,602,382 shares of the construction company's stock worth $175,701,000 after buying an additional 131,360 shares during the period. First Trust Advisors LP boosted its holdings in Granite Construction by 52.8% during the 1st quarter. First Trust Advisors LP now owns 1,397,573 shares of the construction company's stock valued at $167,541,000 after acquiring an additional 483,080 shares during the period. Mizuho Markets Cayman LP boosted its holdings in Granite Construction by 569.9% during the 3rd quarter. Mizuho Markets Cayman LP now owns 1,339,818 shares of the construction company's stock valued at $151,064,000 after acquiring an additional 1,139,818 shares during the period. Dimensional Fund Advisors LP grew its position in Granite Construction by 0.4% in the 1st quarter. Dimensional Fund Advisors LP now owns 1,067,545 shares of the construction company's stock valued at $127,969,000 after acquiring an additional 4,327 shares during the last quarter. Finally, Wasatch Advisors LP grew its position in Granite Construction by 12.4% in the 3rd quarter. Wasatch Advisors LP now owns 861,770 shares of the construction company's stock valued at $94,493,000 after acquiring an additional 94,902 shares during the last quarter.

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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