Primoris Services (NASDAQ:PRIM) Sets New 52-Week High on Better-Than-Expected Earnings

Key Points

• Primoris Services shares reached a new 52-week high of $112.98 following a strong earnings report, with a last trading price of $103.42 and a significant increase in revenue of 20.9% year-over-year.
• The company reported $1.68 earnings per share (EPS), surpassing the consensus estimate of $1.10, and had revenue of $1.89 billion exceeding analysts' expectations of $1.69 billion.
• Several analysts upgraded their price targets for Primoris Services, with a consensus rating of "Moderate Buy" and an average price target of $92.67 amidst strong institutional investor interest.

Primoris Services Co. (NASDAQ:PRIM - Get Free Report)'s stock price reached a new 52-week high on Tuesday after the company announced better than expected quarterly earnings. The stock traded as high as $112.98 and last traded at $103.42, with a volume of 216054 shares traded. The stock had previously closed at $93.09.

The construction company reported $1.68 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.10 by $0.58. Primoris Services had a return on equity of 15.23% and a net margin of 2.68%. The firm had revenue of $1.89 billion during the quarter, compared to the consensus estimate of $1.69 billion. During the same period in the prior year, the firm earned $1.04 EPS. The firm's quarterly revenue was up 20.9% compared to the same quarter last year.

Primoris Services Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, October 15th. Stockholders of record on Tuesday, September 30th will be paid a dividend of $0.08 per share. The ex-dividend date is Tuesday, September 30th. This represents a $0.32 annualized dividend and a dividend yield of 0.3%. Primoris Services's dividend payout ratio (DPR) is currently 7.26%.

Analyst Upgrades and Downgrades

PRIM has been the subject of several recent analyst reports. UBS Group raised their target price on Primoris Services from $100.00 to $110.00 and gave the company a "buy" rating in a research note on Tuesday. KeyCorp increased their price target on shares of Primoris Services from $98.00 to $119.00 and gave the stock an "overweight" rating in a research report on Wednesday. Piper Sandler increased their price target on shares of Primoris Services from $75.00 to $76.00 and gave the stock an "overweight" rating in a research report on Wednesday, May 7th. JPMorgan Chase & Co. increased their price target on shares of Primoris Services from $90.00 to $102.00 and gave the stock an "overweight" rating in a research report on Tuesday, July 22nd. Finally, Janney Montgomery Scott assumed coverage on shares of Primoris Services in a research report on Thursday, July 3rd. They set a "buy" rating and a $102.00 price target on the stock. One equities research analyst has rated the stock with a hold rating and eight have issued a buy rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average target price of $99.44.

Insider Activity

In related news, Director John P. Schauerman sold 15,000 shares of the stock in a transaction that occurred on Tuesday, June 24th. The shares were sold at an average price of $77.37, for a total value of $1,160,550.00. Following the transaction, the director directly owned 102,281 shares in the company, valued at $7,913,480.97. This represents a 12.79% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Insiders own 1.40% of the company's stock.

Institutional Investors Weigh In On Primoris Services

Large investors have recently made changes to their positions in the stock. Allspring Global Investments Holdings LLC boosted its holdings in Primoris Services by 34.4% during the first quarter. Allspring Global Investments Holdings LLC now owns 13,922 shares of the construction company's stock worth $799,000 after purchasing an additional 3,561 shares during the last quarter. Cambridge Investment Research Advisors Inc. acquired a new position in Primoris Services during the first quarter worth $231,000. SG Americas Securities LLC acquired a new position in Primoris Services during the first quarter worth $1,070,000. KBC Group NV lifted its stake in Primoris Services by 24.5% in the first quarter. KBC Group NV now owns 2,831 shares of the construction company's stock valued at $163,000 after acquiring an additional 558 shares during the last quarter. Finally, Hsbc Holdings PLC lifted its stake in Primoris Services by 74.3% in the fourth quarter. Hsbc Holdings PLC now owns 45,822 shares of the construction company's stock valued at $3,514,000 after acquiring an additional 19,530 shares during the last quarter. Institutional investors own 91.82% of the company's stock.

Primoris Services Trading Up 0.0%

The stock has a market cap of $6.00 billion, a price-to-earnings ratio of 36.81 and a beta of 1.44. The company has a quick ratio of 1.38, a current ratio of 1.38 and a debt-to-equity ratio of 0.61. The business's 50 day simple moving average is $84.32 and its 200 day simple moving average is $73.05.

Primoris Services Company Profile

Primoris Services Corporation, a specialty contractor company, provides a range of specialty construction, fabrication, maintenance, replacement, and engineering services in the United States and Canada. The company operates through Utilities and Energy/Renewables segments. The Utilities segment offers installation and maintenance services for new and existing natural gas distribution systems, electric utility distribution and transmission systems, and communications systems.