Mizuho Begins Coverage of Primoris Services with Neutral Rating

Research analysts at Mizuho have initiated coverage on shares of Primoris Services (NASDAQ: PRIM), assigning the construction company a “neutral” rating along with a price target of $112.00. This target suggests a potential downside of 4.09% based on the company’s last closing price, according to a report released on Thursday by MarketBeat Ratings.

Several other financial institutions have also recently updated their evaluations of Primoris Services. Notably, JPMorgan Chase & Co. raised its price target from $90.00 to $102.00, rating the stock as “overweight” in a report on July 22, 2023. Similarly, DA Davidson increased its target from $85.00 to $125.00 on August 6, 2023, providing a “buy” rating. UBS Group also raised its target from $100.00 to $110.00 with a “buy” rating, and KeyCorp adjusted its target from $119.00 to $129.00, maintaining an “overweight” stance. Lastly, Piper Sandler increased its target from $75.00 to $76.00, also rating the stock as “overweight.”

Overall, eight analysts have rated Primoris Services with a “buy” rating, while two have given it a “hold” rating. According to data from MarketBeat.com, the stock currently holds a consensus rating of “Moderate Buy” with an average price target of $103.70.

Recent Financial Performance

Primoris Services reported its earnings results on August 4, 2023, showing impressive performance for the quarter. The company achieved earnings of $1.68 per share, exceeding analysts’ consensus estimates of $1.10 by $0.58. The firm recorded a net margin of 2.68% and a return on equity of 15.23%. Revenue reached $1.89 billion, surpassing estimates of $1.69 billion and reflecting a year-over-year increase of 20.9%.

For the fiscal year 2025, Primoris Services has set guidance between $4.900 and $5.100 earnings per share. Analysts anticipate that the company will post $3.26 earnings per share for the current fiscal year.

Insider Transactions and Institutional Holdings

In related news, Director John P. Schauerman sold 20,000 shares of Primoris Services on August 12, 2023, at an average price of $114.01, totalling $2,280,200.00. Following this transaction, Schauerman owns 82,281 shares, valued at approximately $9,380,856.81, marking a decrease of 19.55% in ownership. This sale was reported through a legal filing with the SEC.

Institutional investors hold a significant stake in Primoris Services, owning approximately 91.82% of the company’s stock. Recent adjustments include a 294.1% increase in holdings by Versant Capital Management Inc in the first quarter, and a remarkable 3,626.7% increase in shares by Brooklyn Investment Group during the same period. Other notable institutional movements include Osterweis Capital Management Inc. purchasing shares valued at $34,000 and Public Employees Retirement System of Ohio increasing its stake by 85.4%.

Primoris Services Corporation operates as a specialty contractor, offering a diverse range of construction, fabrication, maintenance, and engineering services primarily in the United States and Canada. Its operations are divided into two main segments: Utilities, which focuses on installation and maintenance of natural gas and electric utility systems, and Energy/Renewables.

As market dynamics continue to evolve, Primoris Services remains a focal point for investors seeking exposure in the construction sector.