Michael G Tatusko Takes Money Off The Table, Sells $346K In Granite Construction Stock

Michael G Tatusko, Senior Vice President at Granite Construction GVA, reported an insider sell on August 6, according to a new SEC filing.

What Happened: Tatusko's recent move involves selling 5,000 shares of Granite Construction. This information is documented in a Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday. The total value is $346,078.

Granite Construction's shares are actively trading at $68.95, experiencing a down of 0.0% during Wednesday's morning session.

About Granite Construction

Granite Construction Inc engages in the construction and development of various infrastructure projects on behalf of public and private clients in the United States. It focuses on heavy civil infrastructure projects, including roads, highways, transit facilities, airports, bridges and other infrastructure projects. In addition, the company performs site preparation and infrastructure services for residential development, energy development, and other facilities. The majority of revenue is derived from the company's Construction operating segment, with the remainder derived from its Materials segment.

A Deep Dive into Granite Construction's Financials

Revenue Growth: Over the 3 months period, Granite Construction showcased positive performance, achieving a revenue growth rate of 20.47% as of 30 June, 2024. This reflects a substantial increase in the company's top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Industrials sector.

Insights into Profitability:

• Gross Margin: The company faces challenges with a low gross margin of 15.22%, suggesting potential difficulties in cost control and profitability compared to its peers.

• Earnings per Share (EPS): Granite Construction's EPS is below the industry average. The company faced challenges with a current EPS of 0.84. This suggests a potential decline in earnings.

Debt Management: Granite Construction's debt-to-equity ratio is notably higher than the industry average. With a ratio of 0.88, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

Understanding Financial Valuation:

• Price to Earnings (P/E) Ratio: The P/E ratio of 34.3 is lower than the industry average, implying a discounted valuation for Granite Construction's stock.

• Price to Sales (P/S) Ratio: With a P/S ratio of 0.96 below industry standards, the stock shows potential undervaluation, making it an appealing investment option for those focusing on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Indicated by a lower-than-industry-average EV/EBITDA ratio of 12.47, the company suggests a potential undervaluation, which might be advantageous for value-focused investors.

Market Capitalization Analysis: Falling below industry benchmarks, the company's market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.

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Navigating the Impact of Insider Transactions on Investments

Insider transactions are not the sole determinant of investment choices, but they are a factor worth considering.

Within the legal framework, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities as per Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are mandated to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

The initiation of a new purchase by a company insider serves as a strong indication that they expect the stock to rise.

However, insider sells may not always signal a bearish view and can be influenced by various factors.

Deciphering Transaction Codes in Insider Filings

Navigating through the landscape of transactions, investors often prioritize those unfolding in the open market, precisely detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of Granite Construction's Insider Trades.

This article was generated by Benzinga's automated content engine and reviewed by an editor.