Granite Construction (NYSE:GVA) Stock Price Up 8.9% Following Better-Than-Expected Earnings

Key Points

• Granite Construction shares jumped 8.9% after the company reported quarterly EPS of $3.81, surpassing the $3.27 consensus estimate. Revenue reached $1.77 billion, up 23.5% year over year and above analysts’ $1.70 billion forecast.
• The company declared a quarterly dividend of $0.13, equivalent to $0.52 annually and a 0.4% yield.
• Analyst sentiment remains mixed, with Granite carrying a consensus “Hold” rating and a $158.50 average price target; ratings range from Strong Buy to Sell.

Granite Construction Incorporated (NYSE:GVA - Get Free Report) shares rose 8.9% during trading on Thursday after the company announced better than expected quarterly earnings. The company traded as high as $122.20 and last traded at $121.6140. Approximately 306,318 shares changed hands during mid-day trading, a decline of 57% from the average session volume of 716,495 shares. The stock had previously closed at $111.67.

The construction company reported $3.81 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $3.27 by $0.54. Granite Construction had a negative net margin of 3.32% and a positive return on equity of 27.83%. The firm had revenue of $1.77 billion for the quarter, compared to analysts' expectations of $1.70 billion. During the same period last year, the firm earned $1.98 earnings per share. The business's revenue for the quarter was up 23.5% on a year-over-year basis.

Granite Construction Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Thursday, October 15th. Stockholders of record on Wednesday, September 30th were issued a $0.13 dividend. The ex-dividend date was Wednesday, September 30th. This represents a $0.52 annualized dividend and a dividend yield of 0.4%. Granite Construction's dividend payout ratio (DPR) is presently -12.06%.

Wall Street Analysts Forecast Growth

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

Insider Buying and Selling

In other Granite Construction news, Director Carlos M. Hernandez bought 400 shares of the business's stock in a transaction dated Thursday, August 6th. The shares were purchased at an average price of $123.99 per share, for a total transaction of $49,596.00. Following the purchase, the director directly owned 5,033 shares of the company's stock, valued at approximately $624,041.67. This represents a 8.63% increase in their ownership of the stock. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Company insiders own 0.88% of the company's stock.

Institutional Trading of Granite Construction

A number of large investors have recently bought and sold shares of the company. Root Financial Partners LLC bought a new position in Granite Construction in the 3rd quarter worth about $26,000. Fortitude Family Office LLC raised its stake in shares of Granite Construction by 696.4% in the third quarter. Fortitude Family Office LLC now owns 223 shares of the construction company's stock worth $26,000 after purchasing an additional 195 shares during the last quarter. Balance Wealth Partners LLC acquired a new position in Granite Construction in the third quarter valued at approximately $41,000. Public Employees Retirement System of Ohio purchased a new stake in shares of Granite Construction during the 2nd quarter worth about $86,000. Finally, Parallel Advisors LLC increased its stake in shares of Granite Construction by 133.4% in the 1st quarter. Parallel Advisors LLC now owns 873 shares of the construction company's stock valued at $105,000 after purchasing an additional 499 shares in the last quarter.

Granite Construction Stock Up 8.9%

The company has a market cap of $5.32 billion, a PE ratio of -28.21 and a beta of 1.34. The business has a 50-day simple moving average of $115.88 and a 200-day simple moving average of $126.39. The company has a quick ratio of 0.94, a current ratio of 1.01 and a debt-to-equity ratio of 1.46.

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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