Goldman Sachs Group Lowers Granite Construction (NYSE:GVA) to Sell

Goldman Sachs Group downgraded shares of Granite Construction (NYSE:GVA) from a neutral rating to a sell rating in a research note published on Monday, BenzingaRatingsTable reports. The brokerage currently has $26.00 price target on the construction company’s stock, down from their previous price target of $29.00.

Several other brokerages have also recently issued reports on GVA. ValuEngine raised Granite Construction from a hold rating to a buy rating in a research note on Thursday, December 12th. Zacks Investment Research cut Granite Construction from a buy rating to a strong sell rating in a research report on Friday, November 1st. Finally, DA Davidson cut Granite Construction from a buy rating to a neutral rating and dropped their target price for the company from $45.00 to $30.00 in a research report on Monday, October 28th. Two analysts have rated the stock with a sell rating, two have assigned a hold rating and two have assigned a buy rating to the stock. Granite Construction currently has a consensus rating of Hold and an average target price of $39.50.

Shares of NYSE:GVA opened at $27.32 on Monday. Granite Construction has a 52-week low of $22.55 and a 52-week high of $49.03. The business’s 50 day moving average is $26.90 and its 200 day moving average is $31.45. The company has a debt-to-equity ratio of 0.31, a current ratio of 1.76 and a quick ratio of 1.65.

Granite Construction (NYSE:GVA) last announced its quarterly earnings data on Friday, October 25th. The construction company reported $0.43 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.41 by ($0.98). Granite Construction had a negative return on equity of 4.63% and a negative net margin of 3.11%. The firm had revenue of $1.09 billion during the quarter, compared to the consensus estimate of $1.15 billion. During the same period last year, the company earned $1.43 EPS. The firm’s revenue for the quarter was up 3.1% compared to the same quarter last year. On average, sell-side analysts forecast that Granite Construction will post -1.39 EPS for the current fiscal year.

The business also recently announced a quarterly dividend, which was paid on Wednesday, January 15th. Shareholders of record on Tuesday, December 31st were given a dividend of $0.13 per share. The ex-dividend date of this dividend was Monday, December 30th. This represents a $0.52 annualized dividend and a yield of 1.90%. Granite Construction’s dividend payout ratio (DPR) is presently 22.22%.

In related news, CFO Desai Jigisha bought 2,000 shares of the company’s stock in a transaction on Tuesday, November 5th. The shares were acquired at an average price of $27.27 per share, with a total value of $54,540.00. The transaction was disclosed in a document filed with the SEC, which is available at this link. Also, Director Claes Bjork bought 4,000 shares of the company’s stock in a transaction on Tuesday, November 5th. The shares were bought at an average cost of $27.19 per share, for a total transaction of $108,760.00. The disclosure for this purchase can be found here. Insiders have acquired a total of 8,900 shares of company stock worth $240,266 in the last ninety days. Insiders own 1.00% of the company’s stock.

A number of hedge funds and other institutional investors have recently made changes to their positions in GVA. First Trust Advisors LP lifted its holdings in shares of Granite Construction by 0.8% during the 3rd quarter. First Trust Advisors LP now owns 57,662 shares of the construction company’s stock valued at $1,853,000 after purchasing an additional 472 shares during the last quarter. Metropolitan Life Insurance Co NY lifted its holdings in shares of Granite Construction by 1.9% during the 3rd quarter. Metropolitan Life Insurance Co NY now owns 27,066 shares of the construction company’s stock valued at $870,000 after purchasing an additional 512 shares during the last quarter. Tompkins Financial Corp lifted its holdings in shares of Granite Construction by 35.3% during the 3rd quarter. Tompkins Financial Corp now owns 2,300 shares of the construction company’s stock valued at $74,000 after purchasing an additional 600 shares during the last quarter. State of Tennessee Treasury Department lifted its holdings in shares of Granite Construction by 4.4% during the 3rd quarter. State of Tennessee Treasury Department now owns 19,072 shares of the construction company’s stock valued at $613,000 after purchasing an additional 800 shares during the last quarter. Finally, California State Teachers Retirement System lifted its holdings in shares of Granite Construction by 1.2% during the 3rd quarter. California State Teachers Retirement System now owns 73,094 shares of the construction company’s stock valued at $2,349,000 after purchasing an additional 873 shares during the last quarter. 99.04% of the stock is currently owned by institutional investors and hedge funds.

About Granite Construction

Granite Construction Incorporated operates as an infrastructure contractor and a construction materials producer in the United States. The company operates through Transportation, Water, Specialty, and Materials segments. The Transportation segment engages in the construction and rehabilitation of roads, pavement preservation, bridges, rail lines, airports, and marine ports.

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