Primoris Services (NYSE:PRIM) Shares Up 6.6% - Should You Buy?

Key Points

• Primoris Services shares jumped 6.6% to $85.91, although trading volume was 93% below the average session level.
• Analysts maintain a generally positive outlook, with ten Buy ratings and seven Holds producing a “Moderate Buy” consensus and an average price target of $127.60.
• The company exceeded quarterly EPS expectations but reported a 10.7% year-over-year revenue decline; it also declared a quarterly dividend of $0.08 per share, yielding approximately 0.4%.

Primoris Services Corporation (NYSE:PRIM - Get Free Report)'s stock price shot up 6.6% during trading on Tuesday. The stock traded as high as $84.75 and last traded at $85.91. 97,668 shares changed hands during mid-day trading, a decline of 93% from the average session volume of 1,397,137 shares. The stock had previously closed at $80.57.

Analyst Upgrades and Downgrades

PRIM has been the topic of a number of recent research reports. Piper Sandler initiated coverage on Primoris Services in a research note on Wednesday, September 9th. They set a "neutral" rating and a $90.00 price objective on the stock. Roth Capital restated a "buy" rating and issued a $100.00 target price on shares of Primoris Services in a report on Monday, July 20th. Needham & Company LLC reduced their price target on Primoris Services from $188.00 to $172.00 and set a "buy" rating on the stock in a report on Monday, July 13th. Wolfe Research reissued an "outperform" rating and issued a $149.00 price objective on shares of Primoris Services in a report on Monday, June 15th. Finally, Oppenheimer started coverage on shares of Primoris Services in a research report on Tuesday, July 7th. They set an "outperform" rating and a $135.00 price objective for the company. Ten analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the stock. According to MarketBeat, Primoris Services has an average rating of "Moderate Buy" and a consensus target price of $127.60.

Primoris Services Stock Up 6.2%

The business has a 50-day moving average of $77.69 and a 200-day moving average of $106.62. 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 stock has a market capitalization of $4.60 billion, a price-to-earnings ratio of 33.55 and a beta of 1.44.

Primoris Services (NYSE:PRIM - Get Free Report) last posted its earnings results on Tuesday, August 4th. The company reported ($0.27) EPS for the quarter, beating analysts' consensus estimates of ($0.35) by $0.08. The company had revenue of $1.69 billion for the quarter, compared to analysts' expectations of $1.73 billion. Primoris Services had a net margin of 1.92% and a return on equity of 9.96%. Primoris Services's revenue for the quarter was down 10.7% compared to the same quarter last year. During the same quarter in the prior year, the company posted $1.68 earnings per share. On average, sell-side analysts expect that Primoris Services Corporation will post 1.77 EPS for the current year.

Primoris Services Dividend Announcement

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

Institutional Investors Weigh In On Primoris Services

A number of institutional investors have recently modified their holdings of PRIM. Horizons Wealth Management purchased a new stake in Primoris Services during the third quarter worth about $473,000. Versant Capital Management Inc lifted its position in shares of Primoris Services by 73.5% during the third quarter. Versant Capital Management Inc now owns 864 shares of the company's stock worth $64,000 after purchasing an additional 366 shares in the last quarter. Sequoia Financial Advisors LLC boosted its stake in shares of Primoris Services by 46.6% in the second quarter. Sequoia Financial Advisors LLC now owns 2,073 shares of the company's stock valued at $205,000 after purchasing an additional 659 shares during the period. Integrated Wealth Concepts LLC purchased a new position in shares of Primoris Services in the second quarter valued at approximately $124,000. Finally, Nykredit A S acquired a new position in shares of Primoris Services in the second quarter valued at approximately $185,000. 91.82% of the stock is owned by institutional investors and hedge funds.

Primoris Services Company Profile

Primoris Services Corporation is a specialty contractor that provides construction, maintenance and engineering services for critical infrastructure across the United States. The company serves markets including utilities, energy, power delivery, renewable energy, transportation and industrial facilities.

Its services include the construction and maintenance of electric transmission and distribution systems, natural gas and water infrastructure, pipelines, power-generation facilities, solar and renewable-energy projects, and other complex industrial assets.

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