Primoris Services (NASDAQ:PRIM) Trading Down 3.3% - Here's Why

Key Points

• Primoris Services shares fell 3.3% to $135.95, with trading volume declining 71% from average levels, indicating reduced investor interest.
• Analysts have mixed reviews; recent upgrades include a buy rating from Glj Research with a price target of $160, while Zacks downgraded it from "strong buy" to "hold."
• The company reported strong earnings, with $1.68 EPS this quarter, exceeding estimates, and set FY 2025 guidance for EPS between 4.900-5.100.

Shares of Primoris Services Co. (NASDAQ:PRIM - Get Free Report) traded down 3.3% during mid-day trading on Wednesday . The stock traded as low as $135.12 and last traded at $135.95. 259,362 shares were traded during mid-day trading, a decline of 71% from the average session volume of 903,914 shares. The stock had previously closed at $140.60.

Analysts Set New Price Targets

Several equities analysts recently issued reports on the company. Glj Research assumed coverage on Primoris Services in a research report on Monday, September 22nd. They issued a "buy" rating and a $160.00 price target on the stock. DA Davidson lifted their price objective on Primoris Services from $85.00 to $125.00 and gave the company a "buy" rating in a report on Wednesday, August 6th. Janney Montgomery Scott started coverage on Primoris Services in a report on Thursday, July 3rd. They issued a "buy" rating and a $102.00 price objective on the stock. Zacks Research lowered Primoris Services from a "strong-buy" rating to a "hold" rating in a report on Tuesday, September 9th. Finally, UBS Group lifted their price objective on Primoris Services from $135.00 to $158.00 and gave the company a "buy" rating in a report on Wednesday, October 1st. One research analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating and four have given a Hold rating to the company's stock. According to data from MarketBeat, Primoris Services presently has an average rating of "Moderate Buy" and a consensus target price of $125.17.

Primoris Services Price Performance

The company has a current ratio of 1.38, a quick ratio of 1.38 and a debt-to-equity ratio of 0.61. The firm has a market cap of $7.52 billion, a PE ratio of 46.00 and a beta of 1.43. The company has a 50 day moving average price of $123.04 and a 200 day moving average price of $90.50.

Primoris Services (NASDAQ:PRIM - Get Free Report) last issued its quarterly earnings data on Monday, August 4th. The construction company reported $1.68 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.10 by $0.58. The firm had revenue of $1.89 billion during the quarter, compared to the consensus estimate of $1.69 billion. Primoris Services had a return on equity of 15.23% and a net margin of 2.68%.The company's quarterly revenue was up 20.9% compared to the same quarter last year. During the same period in the previous year, the firm posted $1.04 EPS. Primoris Services has set its FY 2025 guidance at 4.900-5.100 EPS. On average, sell-side analysts expect that Primoris Services Co. will post 3.26 EPS for the current year.

Primoris Services Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, October 15th. Investors of record on Tuesday, September 30th will be given a dividend of $0.08 per share. This represents a $0.32 dividend on an annualized basis and a yield of 0.2%. The ex-dividend date of this dividend is Tuesday, September 30th. Primoris Services's dividend payout ratio is 7.26%.

Insider Buying and Selling at Primoris Services

In related news, Director Michael E. Ching sold 2,935 shares of the stock in a transaction dated Thursday, September 11th. The shares were sold at an average price of $119.89, for a total transaction of $351,877.15. Following the sale, the director owned 9,534 shares in the company, valued at $1,143,031.26. This represents a 23.54% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, COO Jeremy Kinch sold 3,006 shares of the firm's stock in a transaction that occurred on Monday, September 15th. The shares were sold at an average price of $124.00, for a total transaction of $372,744.00. Following the completion of the sale, the chief operating officer owned 9,580 shares in the company, valued at $1,187,920. The trade was a 23.88% decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 25,941 shares of company stock valued at $3,004,821 in the last ninety days. Insiders own 1.40% of the company's stock.

Institutional Trading of Primoris Services

A number of large investors have recently added to or reduced their stakes in PRIM. Nuveen LLC acquired a new position in Primoris Services in the 1st quarter worth approximately $111,497,000. Fuller & Thaler Asset Management Inc. raised its holdings in shares of Primoris Services by 122.2% during the 1st quarter. Fuller & Thaler Asset Management Inc. now owns 1,783,872 shares of the construction company's stock valued at $102,412,000 after purchasing an additional 980,940 shares in the last quarter. First Trust Advisors LP raised its holdings in shares of Primoris Services by 56.4% during the 2nd quarter. First Trust Advisors LP now owns 1,833,105 shares of the construction company's stock valued at $142,872,000 after purchasing an additional 660,915 shares in the last quarter. Millennium Management LLC raised its holdings in shares of Primoris Services by 262.1% during the 1st quarter. Millennium Management LLC now owns 728,405 shares of the construction company's stock valued at $41,818,000 after purchasing an additional 527,240 shares in the last quarter. Finally, Pacer Advisors Inc. bought a new position in Primoris Services in the 1st quarter worth $24,133,000. 91.82% of the stock is currently owned by institutional investors.

About Primoris Services

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.

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