Primoris Services (NYSE:PRIM) Shares Climb 7.2% - Time to Buy?

Key Points

• Primoris Services shares rose 7.2% to about $76.24, although trading volume was 92% below the average session volume.
• Analyst sentiment remains positive overall, with a consensus “Moderate Buy” rating and an average price target of $127.60, despite several recent target cuts.
• The company beat quarterly EPS estimates but reported a 10.7% year-over-year revenue decline; it also declared a quarterly dividend of $0.08, representing a 0.4% yield.

Primoris Services Corporation (NYSE:PRIM - Get Free Report)'s share price was up 7.2% during trading on Tuesday. The company traded as high as $77.94 and last traded at $76.2360. Approximately 117,147 shares changed hands during mid-day trading, a decline of 92% from the average session volume of 1,394,496 shares. The stock had previously closed at $71.12.

Analysts Set New Price Targets

PRIM has been the topic of a number of research analyst reports. Needham & Company LLC dropped their price target on Primoris Services from $188.00 to $172.00 and set a "buy" rating on the stock in a research note on Monday, July 13th. Wells Fargo & Company decreased their price objective on shares of Primoris Services from $118.00 to $85.00 and set an "equal weight" rating for the company in a research report on Tuesday, June 23rd. Wolfe Research reiterated an "outperform" rating and issued a $149.00 target price on shares of Primoris Services in a research note on Monday, June 15th. Zacks Research raised shares of Primoris Services from a "strong sell" rating to a "hold" rating in a research report on Monday, August 24th. Finally, Wall Street Zen lowered shares of Primoris Services from a "hold" rating to a "sell" rating in a research note on Saturday, June 27th. Ten investment analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the company's stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $127.60.

Primoris Services Trading Up 5.0%

The company has a debt-to-equity ratio of 0.47, a quick ratio of 1.18 and a current ratio of 1.18. The company has a 50 day simple moving average of $78.79 and a two-hundred day simple moving average of $108.71. The firm has a market cap of $4.02 billion, a PE ratio of 29.22 and a beta of 1.43.

Primoris Services (NYSE:PRIM - Get Free Report) last announced its quarterly earnings data on Tuesday, August 4th. The company reported ($0.27) earnings per share for the quarter, beating analysts' consensus estimates of ($0.35) by $0.08. Primoris Services had a return on equity of 9.96% and a net margin of 1.92%.The business had revenue of $1.69 billion for the quarter, compared to analyst estimates of $1.73 billion. During the same period in the prior year, the company earned $1.68 earnings per share. The company's revenue was down 10.7% on a year-over-year basis. Analysts expect that Primoris Services Corporation will post 1.78 EPS for the current fiscal year.

Primoris Services Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, October 15th. Investors of record on Wednesday, September 30th will be issued a $0.08 dividend. This represents a $0.32 annualized dividend and a yield of 0.4%. The ex-dividend date is Wednesday, September 30th. Primoris Services's dividend payout ratio is 12.55%.

Hedge Funds Weigh In On Primoris Services

A number of institutional investors have recently bought and sold shares of PRIM. Global Retirement Partners LLC acquired a new stake in shares of Primoris Services in the second quarter worth $26,000. Harbour Investments Inc. acquired a new position in Primoris Services during the fourth quarter valued at $33,000. Root Financial Partners LLC lifted its position in Primoris Services by 43.1% during the first quarter. Root Financial Partners LLC now owns 229 shares of the company's stock valued at $33,000 after purchasing an additional 69 shares during the period. Persistent Asset Partners Ltd purchased a new stake in Primoris Services in the second quarter valued at $36,000. Finally, Osterweis Capital Management Inc. purchased a new stake in Primoris Services in the second quarter valued at $43,000. 91.82% of the stock is owned by hedge funds and other institutional investors.

About Primoris Services

Primoris Services Corporation is a specialty contractor and infrastructure services company that provides construction, engineering, maintenance, and technical services across North America. The company serves utilities, energy producers, industrial customers, municipalities, and renewable energy developers.

Primoris operates through three primary business areas: Utilities, Energy, and Renewables. Its services include the construction, repair, replacement, and maintenance of electric transmission and distribution systems, natural gas and other utility infrastructure, communications networks, water and wastewater facilities, pipelines, power-generation assets, and industrial facilities.

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