Primoris Services (NYSE:PRIM) Price Target Cut to $138.00 by Analysts at UBS Group

Key Points

• UBS lowered Primoris Services’ price target to $138 from $186 while maintaining a “buy” rating, implying approximately 71% upside from the stock’s $80.76 close.
• Analyst sentiment remains mixed but leans positive: Primoris has an overall “Moderate Buy” rating and an average target price of $132.27, although several firms recently reduced their targets or ratings.
• Shares fell 2.3%, while the company reported a quarterly EPS loss of $0.27 that beat estimates but revenue declined 10.7% year over year to $1.69 billion. Two insiders also recently sold shares, and institutional investors own 91.82% of the stock.

Primoris Services (NYSE:PRIM - Get Free Report) had its price objective lowered by equities researchers at UBS Group from $186.00 to $138.00 in a research report issued to clients and investors on Monday,Benzinga reports. The firm presently has a "buy" rating on the stock. UBS Group's target price would indicate a potential upside of 70.88% from the company's previous close.

Several other brokerages also recently issued reports on PRIM. Zacks Research downgraded shares of Primoris Services from a "hold" rating to a "strong sell" rating in a research note on Tuesday, May 12th. KeyCorp reaffirmed a "sector weight" rating on shares of Primoris Services in a research note on Tuesday, June 23rd. Guggenheim dropped their target price on Primoris Services from $162.00 to $127.00 and set a "buy" rating on the stock in a report on Thursday. Wall Street Zen lowered shares of Primoris Services from a "hold" rating to a "sell" rating in a research report on Saturday, June 27th. Finally, Mizuho decreased their price target on shares of Primoris Services from $135.00 to $117.00 and set an "outperform" rating for the company in a report on Tuesday, June 23rd. Eleven research analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the company has an average rating of "Moderate Buy" and an average target price of $132.27.

Primoris Services Stock Down 2.3%

Shares of PRIM stock traded down $1.87 on Monday, hitting $80.76. The stock had a trading volume of 656,256 shares, compared to its average volume of 1,451,739. The stock's 50 day moving average is $94.83 and its 200-day moving average is $128.15. The firm has a market capitalization of $4.35 billion, a price-to-earnings ratio of 31.67 and a beta of 1.43. Primoris Services has a 52-week low of $65.00 and a 52-week high of $205.50. The company has a debt-to-equity ratio of 0.47, a quick ratio of 1.18 and a current ratio of 1.18.

Primoris Services (NYSE:PRIM - Get Free Report) last announced its quarterly earnings results on Tuesday, August 4th. The company reported ($0.27) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.35) by $0.08. Primoris Services had a net margin of 1.92% and a return on equity of 9.96%. The company had revenue of $1.69 billion during the quarter, compared to the consensus estimate of $1.73 billion. During the same quarter in the previous year, the company posted $1.68 earnings per share. The company's revenue for the quarter was down 10.7% compared to the same quarter last year. As a group, research analysts expect that Primoris Services will post 1.87 earnings per share for the current year.

Insider Buying and Selling

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

Institutional Investors Weigh In On Primoris Services

Large investors have recently added to or reduced their stakes in the stock. NewEdge Advisors LLC boosted its stake 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. Goldman Sachs Group Inc. grew its stake in shares of Primoris Services by 7.4% during the 1st quarter. Goldman Sachs Group Inc. now owns 493,594 shares of the company's stock valued at $28,337,000 after acquiring an additional 33,934 shares during the period. Caxton Associates LLP purchased a new stake in Primoris Services in the 1st quarter worth approximately $268,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its holdings in Primoris Services by 25.2% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 168,090 shares of the company's stock worth $9,650,000 after acquiring an additional 33,818 shares in the last quarter. Finally, M&T Bank Corp bought a new stake in Primoris Services during the 2nd quarter worth approximately $274,000. Institutional investors and hedge funds own 91.82% of the company's stock.

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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