Primoris Services (NYSE:PRIM) Lowered to Sell Rating by Wall Street Zen

Key Points

• Wall Street Zen downgraded Primoris Services from hold to sell, adding to a mixed but increasingly cautious analyst backdrop. The stock still carries a consensus rating of Moderate Buy, but recent analyst actions have been split.
• Primoris reported weaker-than-expected quarterly results, posting $0.59 EPS versus the $0.87 estimate and revenue of $1.56 billion versus $1.73 billion expected. Revenue also fell 5.4% year over year, underscoring pressure on performance.
• Investor sentiment has turned more negative amid insider selling and reports of operational problems in renewables projects. The article also notes legal investigations and reduced earnings estimates from analysts, which could keep pressure on the stock.

Primoris Services (NYSE:PRIM - Get Free Report) was downgraded by investment analysts at Wall Street Zen from a "hold" rating to a "sell" rating in a research report issued to clients and investors on Saturday.

Other equities analysts have also recently issued research reports about the company. JPMorgan Chase & Co. raised their price target on Primoris Services from $165.00 to $171.00 and gave the company a "neutral" rating in a report on Wednesday, April 1st. Mizuho cut their target price on shares of Primoris Services from $135.00 to $117.00 and set an "outperform" rating for the company in a report on Tuesday. KeyCorp reaffirmed a "sector weight" rating on shares of Primoris Services in a research note on Tuesday. Zacks Research cut shares of Primoris Services from a "hold" rating to a "strong sell" rating in a research note on Tuesday, May 12th. Finally, Guggenheim restated a "buy" rating and issued a $162.00 target price on shares of Primoris Services in a report on Tuesday. One investment analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating, six have assigned a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average target price of $144.67.

Primoris Services Stock Performance

PRIM opened at $93.13 on Friday. The company has a debt-to-equity ratio of 0.24, a quick ratio of 1.28 and a current ratio of 1.28. The stock has a market capitalization of $5.05 billion, a price-to-earnings ratio of 20.51 and a beta of 1.36. The company has a fifty day moving average of $124.85 and a 200 day moving average of $137.38. Primoris Services has a fifty-two week low of $65.00 and a fifty-two week high of $205.50.

Primoris Services (NYSE:PRIM - Get Free Report) last announced its quarterly earnings results on Tuesday, May 5th. The company reported $0.59 EPS for the quarter, missing the consensus estimate of $0.87 by ($0.28). The company had revenue of $1.56 billion during the quarter, compared to analysts' expectations of $1.73 billion. Primoris Services had a return on equity of 16.48% and a net margin of 3.31%.The firm's revenue for the quarter was down 5.4% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $0.98 EPS. Primoris Services has set its FY 2026 guidance at 4.800-5.000 EPS. As a group, sell-side analysts forecast that Primoris Services will post 1.87 earnings per share for the current fiscal year.

Insider Transactions at Primoris Services

In other news, Director David Lee King sold 20,000 shares of the firm's stock in a transaction that occurred on Tuesday, May 26th. The shares were sold at an average price of $119.09, for a total transaction of $2,381,800.00. Following the transaction, the director directly owned 14,941 shares of the company's stock, valued at approximately $1,779,323.69. This trade represents a 57.24% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, insider John M. Perisich sold 29,707 shares of Primoris Services stock in a transaction that occurred on Thursday, May 28th. The shares were sold at an average price of $127.86, for a total transaction of $3,798,337.02. Following the sale, the insider directly owned 27,574 shares of the company's stock, valued at $3,525,611.64. This represents a 51.86% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 1.10% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Primoris Services

Hedge funds have recently made changes to their positions in the company. Harbour Investments Inc. bought a new stake in shares of Primoris Services in the fourth quarter valued at about $33,000. Root Financial Partners LLC increased its position in Primoris Services by 43.1% during the 1st quarter. Root Financial Partners LLC now owns 229 shares of the company's stock valued at $33,000 after purchasing an additional 69 shares during the period. Osterweis Capital Management Inc. bought a new stake in shares of Primoris Services in the 2nd quarter valued at about $34,000. Cullen Frost Bankers Inc. raised its holdings in shares of Primoris Services by 30.1% in the 4th quarter. Cullen Frost Bankers Inc. now owns 350 shares of the company's stock valued at $43,000 after purchasing an additional 81 shares in the last quarter. Finally, NewEdge Advisors LLC raised its holdings in shares of Primoris Services by 34.5% in the 1st quarter. NewEdge Advisors LLC now owns 757 shares of the company's stock valued at $43,000 after purchasing an additional 194 shares in the last quarter. 91.82% of the stock is currently owned by hedge funds and other institutional investors.

Key Headlines Impacting Primoris Services

Here are the key news stories impacting Primoris Services this week:

• Positive Sentiment: Goldman Sachs upgraded Primoris from sell to neutral, suggesting the stock may be less weak than before, even though the firm still trimmed its price target. Goldman’s revised target implies some upside from recent trading levels.
• Neutral Sentiment: Cantor Fitzgerald lowered its price target on Primoris and kept a neutral stance, signaling a more cautious but not outright bearish view from another analyst.
• Neutral Sentiment: AAII published a comparison piece on Primoris versus MYR Group, which appears informational rather than a direct company catalyst. Article Title
• Negative Sentiment: KeyCorp sharply cut earnings estimates for Primoris across Q2, Q3, Q4, and FY2026, reflecting a much weaker outlook for profitability and adding pressure on the stock.
• Negative Sentiment: Pomerantz LLP and Bragar Eagel & Squire both announced investigations into Primoris on behalf of stockholders, which raises the risk of legal overhang and investor concern. Article Title
• Negative Sentiment: Seeking Alpha and PR Newswire reports highlighted worsening execution problems in Primoris’ renewables projects, including additional cost overruns, expanded project issues, and the departure of the COO. These developments reinforce fears that operational problems could keep weighing on earnings and sentiment. Article Title Article Title

About Primoris Services

Primoris Services Corporation, a specialty contractor company, provides a range of construction, fabrication, maintenance, replacement, and engineering services in the United States and Canada. It operates through three segments: Utilities, Energy/Renewables, and Pipeline Services. 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. The Energy/Renewables segment provides a range of services, including engineering, procurement, and construction, as well as retrofits, highway and bridge construction, demolition, site work, soil stabilization, mass excavation, flood control, upgrades, repairs, outages, and maintenance services to renewable energy and energy storage, renewable fuels, petroleum, refining, and petrochemical industries, as well as state departments of transportation.

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