Viking Fund Management LLC has reduced its position in Primoris Services Co. by 25% during the third quarter, as reported in its latest Form 13F filing with the Securities and Exchange Commission. The firm now holds 18,000 shares of the construction company, having sold 6,000 shares during this period. The remaining shares are valued at approximately $2.47 million.
Several other hedge funds have also adjusted their investments in Primoris Services. Horizons Wealth Management notably increased its stake in the company by 134.9% during the same quarter, now owning 9,338 shares valued at around $1.28 million. Similarly, Osaic Holdings Inc. raised its ownership by 53.3% in the second quarter, acquiring an additional 7,104 shares to bring its total to 20,425 shares worth about $1.49 million.
Other institutional investors have made moves as well. Hohimer Wealth Management LLC purchased a new stake in Primoris Services valued at approximately $201,000. The Public Sector Pension Investment Board increased its holdings by 0.3% during the second quarter, now owning 119,101 shares valued at $9.28 million. Additionally, CANADA LIFE ASSURANCE Co. raised its stake by 15.4%, with a total of 14,065 shares now worth around $1.10 million. Institutional investors currently hold 91.82% of the company’s stock.
Analyst Ratings and Insider Activity
Primoris Services has seen varied analyst ratings recently. Zacks Research downgraded the stock from a “strong-buy” to a “hold” rating on September 9, 2023. Mizuho set a target price of $129.00, while Jefferies Financial Group reaffirmed a “buy” rating with a target of $161.00. DA Davidson increased its price target from $125.00 to $150.00, maintaining a “buy” rating. Currently, one analyst rates the stock as a Strong Buy, eight as Buy, five as Hold, and one as Sell. MarketBeat.com indicates a consensus rating of “Moderate Buy” with an average target price of $140.57.
In terms of insider transactions, Director John P. Schauerman sold 7,815 shares on December 11, 2023, at an average price of $136.00, totaling $1.06 million. Following this sale, he retains 74,466 shares valued at approximately $10.13 million, marking a decrease of 9.50% in his holdings. Another director, Carla S. Mashinski, sold 2,082 shares on December 8, 2023, at an average price of $135.14, bringing her total sales to about $281,361. She now holds 21,530 shares valued at $2.91 million, representing an 8.82% decrease in her position.
Stock Performance and Financial Outlook
Primoris Services opened at $125.40 on Friday, with a market capitalization of $6.78 billion. The company maintains a current ratio of 1.38, a quick ratio of 1.38, and a debt-to-equity ratio of 0.61. Over the past year, the stock has fluctuated between a low of $49.10 and a high of $146.16.
In its most recent quarterly earnings report released on November 3, 2023, Primoris Services reported earnings per share (EPS) of $1.88, surpassing analysts’ expectations of $1.37 by $0.51. The firm achieved revenues of $2.18 billion, exceeding the consensus estimate of $1.83 billion. With a net margin of 2.68% and a return on equity of 15.23%, revenue rose by 32.1% compared to the previous year’s quarter, where the EPS was $1.22.
Looking ahead, Primoris Services has set its fiscal year 2025 guidance at an EPS range of $5.350 to $5.550. Analysts project an average EPS of $3.26 for the current year.
Additionally, the company announced a quarterly dividend of $0.08 per share, to be paid on January 15, 2024. Shareholders of record on December 31, 2023, will receive this dividend, which translates to an annualized dividend of $0.32 and a yield of 0.3%. The current dividend payout ratio stands at 6.31%.
Primoris Services Corporation is a diversified infrastructure construction company, providing specialty contracting services throughout North America. Its operations encompass various sectors, including energy, utilities, transportation, and water management, delivering comprehensive solutions from design through to operational support.
