Primoris Services (NASDAQ:PRIM) Reaches New 1-Year High on Strong 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. The stock had previously closed at $93.09.

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

Primoris Services Announces Dividend

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

Wall Street Analysts Forecast Growth

PRIM has been the subject of several research analyst reports. Piper Sandler lifted their price target on shares of Primoris Services from $75.00 to $76.00 and gave the company an "overweight" rating in a research note on Wednesday, May 7th. KeyCorp boosted their price objective on Primoris Services from $98.00 to $119.00 and gave the stock an "overweight" rating in a report on Wednesday. JPMorgan Chase & Co. upped their target price on Primoris Services from $90.00 to $102.00 and gave the stock an "overweight" rating in a research note on Tuesday, July 22nd. Guggenheim restated a "buy" rating and set a $110.00 price target on shares of Primoris Services in a research report on Thursday, July 17th. Finally, Janney Montgomery Scott initiated coverage on Primoris Services in a research note on Thursday, July 3rd. They set a "buy" rating and a $102.00 target price on the stock. One investment analyst has rated the stock with a hold rating and eight have assigned a buy rating to the company's stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $99.44.

Insiders Place Their Bets

In other Primoris Services news, Director John P. Schauerman sold 15,000 shares of Primoris Services stock in a transaction that occurred on Tuesday, June 24th. The stock was 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 approximately $7,913,480.97. This trade represents a 12.79% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. 1.40% of the stock is currently owned by insiders.

Institutional Trading of Primoris Services

A number of hedge funds have recently bought and sold shares of PRIM. Versant Capital Management Inc raised its stake in shares of Primoris Services by 294.1% in the 1st quarter. Versant Capital Management Inc now owns 465 shares of the construction company's stock valued at $27,000 after acquiring an additional 347 shares during the period. Brooklyn Investment Group raised its stake in Primoris Services by 3,626.7% during the first quarter. Brooklyn Investment Group now owns 559 shares of the construction company's stock worth $32,000 after acquiring an additional 544 shares during the period. Public Employees Retirement System of Ohio boosted its position in Primoris Services by 85.4% during the 2nd quarter. Public Employees Retirement System of Ohio now owns 484 shares of the construction company's stock valued at $38,000 after purchasing an additional 223 shares during the period. Parallel Advisors LLC increased its holdings in shares of Primoris Services by 6,687.5% in the 2nd quarter. Parallel Advisors LLC now owns 543 shares of the construction company's stock worth $42,000 after acquiring an additional 535 shares during the period. Finally, NewEdge Advisors LLC grew its stake in shares of Primoris Services by 34.5% in the first quarter. NewEdge Advisors LLC now owns 757 shares of the construction company's stock worth $43,000 after purchasing an additional 194 shares in the last quarter. Institutional investors and hedge funds own 91.82% of the company's stock.

Primoris Services Trading Up 1.8%

The business's 50 day moving average price is $82.76 and its two-hundred day moving average price is $72.71. The company has a debt-to-equity ratio of 0.61, a quick ratio of 1.38 and a current ratio of 1.38. The company has a market capitalization of $5.97 billion, a price-to-earnings ratio of 36.59 and a beta of 1.44.

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.