Mizuho Begins Coverage of Primoris Services with Neutral Rating

Research analysts at Mizuho have initiated coverage on shares of Primoris Services (NASDAQ: PRIM) with a “neutral” rating and a price target of $112.00. The report, released on August 4, 2024, indicates a potential downside of 4.09% from the company’s previous closing price. This marks a significant step as analysts continue to evaluate the construction company amidst market fluctuations.

Several other investment firms have also provided insights into Primoris Services. On July 22, JPMorgan Chase & Co. raised their target price from $90.00 to $102.00, rating the stock as “overweight.” Similarly, DA Davidson increased its target from $85.00 to $125.00 with a “buy” rating, while UBS Group adjusted its target from $100.00 to $110.00 and also issued a “buy” rating. KeyCorp raised its target from $119.00 to $129.00, maintaining an “overweight” rating, and Piper Sandler increased its target from $75.00 to $76.00, also giving an “overweight” rating.

As it stands, eight analysts have recommended a “buy” rating for Primoris Services, while two have assigned a “hold” rating. According to data from MarketBeat, the consensus rating for the stock is “Moderate Buy,” with an average price target of $103.70.

Recent Earnings Report and Financial Performance

Primoris Services recently issued its earnings report on August 4, 2024, revealing earnings of $1.68 per share for the quarter. This figure surpassed analysts’ expectations, which had set the consensus estimate at $1.10, resulting in a positive variance of $0.58. The company reported a net margin of 2.68% and a return on equity of 15.23%. Total revenue reached $1.89 billion, exceeding analyst estimates of $1.69 billion. Notably, this revenue reflects a year-over-year increase of 20.9%.

The company has provided guidance for fiscal year 2025, projecting earnings per share between $4.90 and $5.10. Analysts anticipate that Primoris Services will report earnings of $3.26 per share for the current fiscal year.

Insider Transactions and Institutional Investment Trends

In a notable transaction, John P. Schauerman, a director at Primoris Services, sold 20,000 shares on August 12, 2024. The shares were sold at an average price of $114.01, totaling approximately $2.28 million. Following this sale, Schauerman retained 82,281 shares, valued at around $9.38 million, which marks a 19.55% reduction in ownership. This transaction was disclosed in a legal filing with the U.S. Securities and Exchange Commission.

Institutional investors have been active in adjusting their positions in Primoris Services. Versant Capital Management Inc. increased its stake by 294.1% in the first quarter, now owning 465 shares valued at $27,000. Brooklyn Investment Group dramatically increased its stake by 3,626.7%, now holding 559 shares valued at $32,000. Other notable investments include Osterweis Capital Management Inc., which acquired a new stake valued at $34,000, and the Public Employees Retirement System of Ohio, which raised its stake by 85.4% during the second quarter.

Currently, institutional investors collectively own 91.82% of Primoris Services’ stock, indicating strong confidence in the company’s future prospects.

Primoris Services operates as a specialty contractor, offering a range of services in the construction, fabrication, maintenance, replacement, and engineering sectors across the United States and Canada. The company is divided into two primary segments: Utilities and Energy/Renewables, which encompass essential services for natural gas and electric utility systems.

As analysts continue to monitor Primoris Services, the company’s financial performance and market positioning will remain key areas of interest for investors.