Primoris Services (NYSE:PRIM) Stock Falls 7.4% - Should You Sell?

Key Points

• Primoris Services shares fell 7.4% to about $72.25, with trading volume 56% below its average. The stock is down substantially from its 200-day moving average of $103.64.
• Analyst sentiment remains positive overall, with a consensus rating of “Moderate Buy” and an average price target of $123.47, despite several recent target reductions.
• The company beat quarterly EPS expectations but reported 10.7% year-over-year revenue decline to $1.69 billion. Primoris also announced a quarterly dividend of $0.08 per share, yielding approximately 0.4%.

Primoris Services Corporation (NYSE:PRIM - Get Free Report)'s stock price traded down 7.4% during mid-day trading on Thursday. The company traded as low as $71.72 and last traded at $72.2480. 611,089 shares traded hands during trading, a decline of 56% from the average daily volume of 1,398,516 shares. The stock had previously closed at $78.03.

Wall Street Analyst Weigh In

Several research firms have recently commented on PRIM. Weiss Ratings cut Primoris Services from a "hold (c+)" rating to a "hold (c)" rating in a report on Thursday, August 6th. Guggenheim decreased their price target on Primoris Services from $162.00 to $127.00 and set a "buy" rating on the stock in a research note on Thursday, August 6th. Jefferies Financial Group restated a "buy" rating and issued a $99.00 price target on shares of Primoris Services in a report on Thursday, October 8th. Needham & Company LLC reduced their price objective on Primoris Services from $188.00 to $172.00 and set a "buy" rating for the company in a report on Monday, July 13th. Finally, Cantor Fitzgerald reiterated a "neutral" rating and set a $105.00 target price on shares of Primoris Services in a research report on Tuesday, September 29th. Ten analysts have rated the stock with a Buy rating and seven have given a Hold rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus price target of $123.47.

Primoris Services Stock Down 6.6%

The firm has a market capitalization of $3.92 billion, a PE ratio of 28.53 and a beta of 1.44. The company has a current ratio of 1.18, a quick ratio of 1.18 and a debt-to-equity ratio of 0.47. The firm has a 50-day moving average of $77.52 and a two-hundred day moving average of $103.64.

Primoris Services (NYSE:PRIM - Get Free Report) last issued 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. Primoris Services had a net margin of 1.92% and a return on equity of 9.96%. The business had revenue of $1.69 billion for the quarter, compared to the consensus estimate of $1.73 billion. During the same quarter last year, the firm posted $1.68 EPS. The business's revenue for the quarter was down 10.7% compared to the same quarter last year. On average, equities research analysts forecast that Primoris Services Corporation will post 1.77 EPS for the current year.

Primoris Services Announces Dividend

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

Hedge Funds Weigh In On Primoris Services

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Root Financial Partners LLC boosted its holdings in shares of Primoris Services by 43.1% in the 1st quarter. Root Financial Partners LLC now owns 229 shares of the company's stock valued at $33,000 after buying an additional 69 shares during the period. Global Retirement Partners LLC bought a new stake in shares of Primoris Services during the 2nd quarter valued at about $26,000. Persistent Asset Partners Ltd acquired a new stake in Primoris Services during the second quarter worth about $36,000. Osterweis Capital Management Inc. bought a new position in Primoris Services in the second quarter worth about $43,000. Finally, CENTRAL TRUST Co lifted its holdings in Primoris Services by 7,500.0% in the first quarter. CENTRAL TRUST Co now owns 608 shares of the company's stock worth $87,000 after acquiring an additional 600 shares during the last quarter. 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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