Granite Construction Recent Insider Activity

Disclosed on August 20, Molly Campbell, Director at Granite Construction GVA, executed a substantial insider sell as per the latest SEC filing.

What Happened: Campbell's recent Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday unveiled the sale of 2,810 shares of Granite Construction. The total transaction value is $200,718.

Granite Construction's shares are actively trading at $70.46, experiencing a up of 0.24% during Wednesday's morning session.

Unveiling the Story Behind 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.

Granite Construction: A Financial Overview

Positive Revenue Trend: Examining Granite Construction's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 20.47% as of 30 June, 2024, showcasing a substantial increase in top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Industrials sector.

Navigating Financial Profits:

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

• Earnings per Share (EPS): Granite Construction's EPS reflects a decline, falling below the industry average with a current EPS of 0.84.

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.

Financial Valuation:

• Price to Earnings (P/E) Ratio: The current P/E ratio of 34.97 is below industry norms, indicating potential undervaluation and presenting an investment opportunity.

• Price to Sales (P/S) Ratio: With a lower-than-average P/S ratio of 0.98, the stock presents an attractive valuation, potentially signaling a buying opportunity for investors interested in sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With an EV/EBITDA ratio lower than industry benchmarks at 12.69, Granite Construction presents an attractive value opportunity.

Market Capitalization Analysis: The company's market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.

Now trade stocks online commission free with Charles Schwab, a trusted and complete investment firm.

Understanding the Significance of Insider Transactions

Insider transactions should be considered alongside other factors when making investment decisions, as they can offer important insights.

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.

A Closer Look at Important Transaction Codes

When it comes to transactions, investors tend to focus on those in the open market, detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S indicates 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.