Granite Construction (NYSE:GVA) Shares Cross Above 50 Day Moving Average - What's Next?

Key Points

• Granite Construction shares rose 8.7% and crossed above their 50-day moving average, trading as high as $124.67.
• The company delivered a strong third quarter, with adjusted EPS of $3.81 and revenue of $1.77 billion, both above analyst expectations. Its record $7.5 billion backlog and updated 2026 outlook suggest continued demand.
• Risks remain, including a negative 3.32% net margin, debt-to-equity of 1.46, and mixed analyst sentiment; the consensus rating is Hold with an average price target of $158.50.

Granite Construction Incorporated (NYSE:GVA - Get Free Report) passed above its fifty day moving average during trading on Thursday. The stock has a fifty day moving average of $115.78 and traded as high as $124.67. Granite Construction shares last traded at $121.4350, with a volume of 1,645,249 shares changing hands.

Granite Construction News Summary

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

• Positive Sentiment: Granite reported third-quarter adjusted EPS of $3.81, well above analyst estimates ranging from $3.22 to $3.29. Revenue rose 23.5% year over year to $1.77 billion, exceeding the approximately $1.70 billion consensus. Granite Construction Q3 Earnings and Revenues Beat Estimates
• Positive Sentiment: The company reported a record $7.5 billion backlog, supporting expectations for continued construction activity and future revenue visibility. Granite Construction Q3 2026 Earnings
• Positive Sentiment: Granite updated its full-year 2026 earnings guidance, with the outlook described as slightly above analyst expectations. That gives investors additional confidence that the strong quarter was not an isolated result. Granite Construction Updates 2026 Earnings Guidance
• Neutral Sentiment: Despite the earnings beat, Granite reported a negative net margin of 3.32%, while its debt-to-equity ratio was 1.46 and current ratio was near 1.0. These figures could limit enthusiasm if margins do not improve, even as operating demand remains strong. Granite Construction Earnings Report

Wall Street Analyst Weigh In

Several equities research analysts recently weighed in on GVA shares. Wall Street Zen lowered shares of Granite Construction from a "buy" rating to a "hold" rating in a research note on Saturday, July 18th. Weiss Ratings downgraded Granite Construction from a "hold (c-)" rating to a "sell (d+)" rating in a research note on Wednesday, September 2nd. Oppenheimer lifted their target price on Granite Construction from $170.00 to $180.00 and gave the company an "outperform" rating in a research note on Friday, July 31st. Finally, The Goldman Sachs Group lowered their target price on Granite Construction from $139.00 to $119.00 and set a "sell" rating for the company in a report on Friday, July 31st. One investment analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating, one has given a Hold rating and two have assigned a Sell rating to the company's stock. According to MarketBeat.com, the company presently has a consensus rating of "Hold" and an average price target of $158.50.

Granite Construction Stock Up 8.7%

The company has a market cap of $5.31 billion, a price-to-earnings ratio of -28.18 and a beta of 1.34. The stock has a 50-day simple moving average of $115.78 and a 200-day simple moving average of $126.39. The company has a current ratio of 1.01, a quick ratio of 0.94 and a debt-to-equity ratio of 1.46.

Granite Construction (NYSE:GVA - Get Free Report) last issued its quarterly earnings results on Thursday, October 29th. The construction company reported $3.81 EPS for the quarter, beating analysts' consensus estimates of $3.27 by $0.54. Granite Construction had a positive return on equity of 27.83% and a negative net margin of 3.32%. The company had revenue of $1.77 billion for the quarter, compared to analyst estimates of $1.70 billion. During the same period last year, the company earned $1.98 earnings per share. The company's quarterly revenue was up 23.5% compared to the same quarter last year. As a group, analysts predict that Granite Construction Incorporated will post 6.36 EPS for the current year.

Granite Construction Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Thursday, October 15th. Shareholders of record on Wednesday, September 30th were paid a dividend of $0.13 per share. This represents a $0.52 dividend on an annualized basis and a yield of 0.4%. The ex-dividend date of this dividend was Wednesday, September 30th. Granite Construction's dividend payout ratio (DPR) is presently -12.06%.

Insider Activity

In other news, Director Carlos M. Hernandez purchased 400 shares of the stock in a transaction dated Thursday, August 6th. The shares were bought at an average cost of $123.99 per share, for a total transaction of $49,596.00. Following the transaction, the director owned 5,033 shares in the company, valued at $624,041.67. This trade represents a 8.63% increase in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Company insiders own 0.88% of the company's stock.

Institutional Trading of Granite Construction

Several institutional investors have recently modified their holdings of GVA. Vise Technologies Inc. increased its holdings in shares of Granite Construction by 38.8% during the 3rd quarter. Vise Technologies Inc. now owns 2,391 shares of the construction company's stock valued at $277,000 after acquiring an additional 668 shares during the last quarter. VIRGINIA RETIREMENT SYSTEMS ET Al raised its stake in shares of Granite Construction by 5.7% in the 3rd quarter. VIRGINIA RETIREMENT SYSTEMS ET Al now owns 20,500 shares of the construction company's stock valued at $2,376,000 after acquiring an additional 1,100 shares in the last quarter. D.A. Davidson & CO. lifted its holdings in Granite Construction by 10.2% in the 3rd quarter. D.A. Davidson & CO. now owns 43,698 shares of the construction company's stock worth $5,065,000 after purchasing an additional 4,027 shares during the last quarter. Balance Wealth Partners LLC acquired a new stake in Granite Construction in the 3rd quarter worth approximately $41,000. Finally, Oppenheimer & Co. Inc. boosted its position in Granite Construction by 2.5% during the third quarter. Oppenheimer & Co. Inc. now owns 9,158 shares of the construction company's stock worth $1,062,000 after purchasing an additional 227 shares during the period.

Granite Construction Company Profile

Granite Construction Incorporated NYSE: GVA is an infrastructure construction company that provides engineering, construction and rehabilitation services for public and private-sector clients. The company's work supports transportation, water and other essential infrastructure projects across the United States.

Granite's transportation activities include the construction and maintenance of highways, roads, bridges, airports, rail systems and other transit facilities. Its water-related services include the development and improvement of water treatment and distribution systems, wastewater facilities, dams, pipelines and related infrastructure.

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