Granite Construction (NYSE:GVA) Trading Up 6.9% on Analyst Upgrade

Key Points

• Granite Construction shares rose 6.9% after Oppenheimer increased its price target to $180 and maintained an “outperform” rating. The stock has a consensus “Moderate Buy” rating and an average analyst target of $158.50.
• The company reported strong operating growth, with second-quarter revenue up approximately 29% to $1.46 billion and adjusted EBITDA rising 22% to $186 million. Management also raised 2026 revenue guidance to $5.3 billion-$5.5 billion.
• Despite the improved outlook, Granite posted a $278 million net loss, primarily due to a roughly $360 million non-operating charge related to convertible-note transactions. Margins remained under pressure, and insider activity included a senior executive’s stock sale alongside a smaller director purchase.

Granite Construction Incorporated (NYSE:GVA - Get Free Report)'s stock price rose 6.9% on Friday after Oppenheimer raised their price target on the stock from $170.00 to $180.00. Oppenheimer currently has an outperform rating on the stock. Granite Construction traded as high as $122.43 and last traded at $122.8470. 802,747 shares were traded during trading, an increase of 8% from the average daily volume of 745,596 shares. The stock had previously closed at $114.92.

A number of other analysts have also recently weighed in on the stock. Weiss Ratings cut shares of Granite Construction from a "hold (c+)" rating to a "hold (c)" rating in a report on Tuesday, July 21st. Stephens assumed coverage on Granite Construction in a report on Friday, June 26th. They issued an "overweight" rating and a $180.00 price target on the stock. Zacks Research raised Granite Construction to a "hold" rating in a research note on Friday, May 29th. The Goldman Sachs Group reissued a "sell" rating and set a $139.00 price objective (down from $141.00) on shares of Granite Construction in a research note on Thursday, July 9th. Finally, Wall Street Zen cut Granite Construction from a "buy" rating to a "hold" rating in a report on Saturday, July 18th. 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 issued a Sell rating to the company. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $158.50.

Insider Buying and Selling

In other news, SVP Michael G. Tatusko sold 7,500 shares of the stock in a transaction on Monday, June 8th. The stock was sold at an average price of $141.00, for a total value of $1,057,500.00. Following the completion of the sale, the senior vice president owned 29,787 shares in the company, valued at $4,199,967. This represents a 20.11% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, Director John Timothy Romer bought 375 shares of Granite Construction stock in a transaction dated Monday, June 15th. The stock was acquired at an average price of $143.65 per share, with a total value of $53,868.75. Following the acquisition, the director directly owned 2,801 shares of the company's stock, valued at approximately $402,363.65. This represents a 15.46% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. Company insiders own 0.88% of the company's stock.

Key Granite Construction News

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.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of GVA. Aster Capital Management DIFC Ltd grew its stake in Granite Construction by 512.8% during the 4th quarter. Aster Capital Management DIFC Ltd now owns 239 shares of the construction company's stock valued at $28,000 after acquiring an additional 200 shares in the last quarter. Newbridge Financial Services Group Inc. purchased a new stake in shares of Granite Construction in the fourth quarter worth approximately $29,000. Root Financial Partners LLC boosted its holdings in shares of Granite Construction by 30.9% during the first quarter. Root Financial Partners LLC now owns 381 shares of the construction company's stock worth $46,000 after purchasing an additional 90 shares during the period. Spire Wealth Management acquired a new stake in shares of Granite Construction during the fourth quarter worth approximately $46,000. Finally, Torren Management LLC purchased a new position in Granite Construction during the fourth quarter valued at approximately $56,000.

Granite Construction Price Performance

The stock has a market capitalization of $5.37 billion, a PE ratio of 35.43 and a beta of 1.29. 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 stock's 50-day moving average is $136.96 and its 200 day moving average is $130.56.

Granite Construction (NYSE:GVA - Get Free Report) last released its earnings results 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 company had revenue of $912.47 million during the quarter, compared to the consensus estimate of $782.26 million. Granite Construction had a net margin of 3.99% and a return on equity of 24.90%. The company's revenue was up 30.4% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $0.01 EPS. As a group, equities analysts predict that Granite Construction Incorporated will post 6.14 earnings per share for the current year.

Granite Construction Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Wednesday, July 15th. Stockholders of record on Tuesday, June 30th were paid a $0.13 dividend. The ex-dividend date of this dividend was Tuesday, June 30th. This represents a $0.52 dividend on an annualized basis and a dividend yield of 0.4%. Granite Construction's dividend payout ratio is -12.06%.

Granite Construction Company Profile

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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