Zacks Investment Research Downgrades Granite Construction (GVA) to Sell

Zacks Investment Research lowered shares of Granite Construction (NYSE:GVA) from a hold rating to a sell rating in a report published on Thursday morning.

According to Zacks, “Granite Construction Inc. is one of the nation’s largest infrastructure contractors and construction materials producers. Granite specializes in complex infrastructure projects, including transportation, industrial and federal contracting, and is a proven leader in alternative procurement project delivery. Granite is an award-winning firm in safety, quality and environmental stewardship, and has been honoured as one of the World’s Most Ethical Companies by Ethisphere Institute for eight consecutive years. Granite is listed on the New York Stock Exchange and is part of the S&P MidCap 400 Index, the MSCI KLD 400 Social Index and the Russell 2000 Index. “

Other equities analysts have also issued reports about the company. MKM Partners set a $55.00 price objective on Granite Construction and gave the stock a buy rating in a research note on Tuesday, October 30th. DA Davidson set a $60.00 price objective on Granite Construction and gave the stock a buy rating in a research note on Monday, October 29th. They noted that the move was a valuation call. Canaccord Genuity reaffirmed a buy rating and issued a $65.00 price objective (down from $75.00) on shares of Granite Construction in a research note on Thursday, August 9th. TheStreet lowered Granite Construction from a b rating to a c+ rating in a research note on Monday, August 13th. Finally, ValuEngine raised Granite Construction from a strong sell rating to a sell rating in a research note on Saturday, October 27th. Two investment analysts have rated the stock with a sell rating and four have issued a buy rating to the company. The stock has an average rating of Hold and a consensus price target of $65.40.

Shares of GVA stock opened at $48.37 on Thursday. Granite Construction has a 12 month low of $39.51 and a 12 month high of $68.58. The stock has a market cap of $2.27 billion, a PE ratio of 29.86, a PEG ratio of 2.48 and a beta of 1.07. The company has a current ratio of 1.84, a quick ratio of 1.73 and a debt-to-equity ratio of 0.23.

Granite Construction (NYSE:GVA) last announced its quarterly earnings results on Friday, October 26th. The construction company reported $1.42 EPS for the quarter, beating the Zacks’ consensus estimate of $1.24 by $0.18. Granite Construction had a return on equity of 9.37% and a net margin of 2.13%. The firm had revenue of $1.06 billion for the quarter, compared to analyst estimates of $1.14 billion. During the same period last year, the firm posted $1.14 earnings per share. The business’s revenue for the quarter was up 10.3% on a year-over-year basis. Equities analysts predict that Granite Construction will post 2.79 EPS for the current year.

The business also recently disclosed a quarterly dividend, which was paid on Friday, October 12th. Investors of record on Friday, September 28th were paid a $0.13 dividend. This represents a $0.52 dividend on an annualized basis and a dividend yield of 1.08%. The ex-dividend date was Thursday, September 27th. Granite Construction’s dividend payout ratio is currently 32.10%.

In related news, Director Claes Bjork acquired 6,500 shares of the business’s stock in a transaction that occurred on Tuesday, August 14th. The shares were bought at an average cost of $44.25 per share, with a total value of $287,625.00. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. 1.30% of the stock is owned by insiders.

Institutional investors and hedge funds have recently modified their holdings of the business. Federated Investors Inc. PA lifted its stake in Granite Construction by 152.0% in the second quarter. Federated Investors Inc. PA now owns 72,546 shares of the construction company’s stock valued at $4,038,000 after buying an additional 43,756 shares during the period. Liberty Mutual Group Asset Management Inc. lifted its stake in Granite Construction by 15.3% in the second quarter. Liberty Mutual Group Asset Management Inc. now owns 9,053 shares of the construction company’s stock valued at $504,000 after buying an additional 1,204 shares during the period. Her Majesty the Queen in Right of the Province of Alberta as represented by Alberta Investment Management Corp acquired a new position in Granite Construction in the second quarter valued at approximately $245,000. Sei Investments Co. lifted its stake in Granite Construction by 40.0% in the second quarter. Sei Investments Co. now owns 5,110 shares of the construction company’s stock valued at $284,000 after buying an additional 1,460 shares during the period. Finally, Swiss National Bank lifted its stake in Granite Construction by 13.4% in the second quarter. Swiss National Bank now owns 78,700 shares of the construction company’s stock valued at $4,380,000 after buying an additional 9,300 shares during the period. 96.19% of the stock is currently owned by hedge funds and other institutional investors.

Granite Construction Company Profile

Granite Construction Incorporated operates as a heavy civil contractor and a construction materials producer in the United States. The company operates through three segments: Construction, Large Project Construction, and Construction Materials. The Construction segment undertakes various civil construction projects focusing on new construction and improvement of streets, roads, highways, bridges, site work, underground, power-related facilities, water-related facilities, utilities, and other infrastructure projects.

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