Granite Construction Incorporated (GVA) Stock Forecast: Should Investors Consider After 2.84% Decline?

If you’re on the hunt for stocks to watch today, Granite Construction Incorporated (NYSE:GVA) is a stock to give close attention to. The company shares are trading 2.84% or 0.79 points down from last closing price of $27.86, reaching $27.07 at last check. The GVA share price has dropped in 4 of the last 5 days and is down -33.98% over the past week. It will be exciting to see whether the stock manages to continue decreasing or take a minor break for the next few days. The move came on weak volume too with far less shares changing hands than in a normal session. Trading activity as of this writing weakened by -481,386 shares, and in total 84114 shares valued at $2.277 million were seen changing hands compared with 565500 shares valued at $15.755 million recorded at the previous session. You should take into consideration that a falling volume on lower prices shows the bearish trend but this is an early indication which means that the GVA stock is near its bottom.

Granite Construction Incorporated (GVA) shares have notched a 3-month decline of about -33.98%, but has still tumbled -30.11% year to date. By comparison, the stock sank -38.19% over the past 12 months, while it slipped -34.84% over the 1 month. The company’s market cap is around $1.38B, with its short interest ratio standing at 8.56%.

In the current trading session for GVA, the stock witnessed two major price actions, it rose to a high of $27.66 and was down as much as $26.95 at one point. The high recorded is very low when compared to their 52-week high which is $27.6. The 52-week high is now at -54.16 distance from current price. Their recent low of $58.93 represents a -2.12% recovery. This data is quite important for investors who look to benefit from the recent rise of the company’s stock. The price target currently for GVA is $45.33, this is below the recent high that the stock attained. Taking a look at the overall sentimental views of financial analysts, the trading pattern of this stock recently is very clear.

The stock of Granite Construction Incorporated earned $-1.69 per share in the trailing 12 months and has a P/E ratio of -16.02. You can compare it with that of similar companies in its industry to get a sense of whether the stock you’re looking to purchase is overvalued or undervalued. Its current price to earnings ratio is lower than the ones recorded by the industry which is 14.8 and lower compared to the sector’s average of 23.99. When the P/E ratio is low let’s say below 1.0, then the stock price is considered a good value. GVA also has P/S multiple of 0.4. This is smaller versus the 12 month P/S ratios of other companies in the same indutry. The peer average price to sales ratio is 1.41x.

The company recorded an interesting insider purchase transaction by the Insider on Aug 12, 2019. A Securities and Exchanges Commission filings show that Desai Jigisha bought a total of 1,000 GVA shares that day for a sum of around $28,330. Granite Construction Incorporated (GVA) insiders have acquired 36,124 shares in the stock within the past three months. In total, individual insiders traded 36,124 shares in the business, which makes up 26.721% of 135,191 shares that were traded over a year. In the past 12 months, insiders have purchased 102,424 shares while the seller parted with 32,767 shares.

GVA‘s last price was down -38.57% as compared to the average trading price of 50 days recorded at $44.07 while enlarging the period to 200 trading days, the average closing price was $41.32. At present, there are 49.18 million in the total number of common shares owned by the public and among those 46.39 million shares have been available to trade. The percentage of shares being held by the company management was 0.7% while institutions stake was 0%. The company has generated negative returns on equity over the last 12 months (-5.4%). It managed to keep its gross profit margin at 7.2% over the past 12 months.

When assessing the full upside of the GVA stock, there is another set of technicals that should be looked into and considered. Its -25.79% decline from moving average of $36.48 has brought about a negative sentiment when calculated over the last 20 days. The market has allocated a beta of 1.33 to the stock. With the beta been greater than one, this implies that the company shares are theoretically more volatile than the market, something that the traders definitely are keeping an eye on.

Most of the analysts surveyed by Thomson/First Call think quite highly of Granite Construction Incorporated — 2 analysts rate the stock as a buy with another 0 rating it strong buy. There are 2 analysts who maintain a hold rating for the stock, with 0 giving it a sell rating. Analysts arrived at a 12-month price target of $48.25 on shares of Granite Construction Incorporated (NYSE:GVA), which corresponds to 78.11% upside potential than its current market price of $27.07 and implies potential despite the recent drop in the price. However, their current target price has fallen from $58.4 a month ago and is down handily from the consensus target of $57.8 a quarter ago.

In the last five years, the EPS of the company has been roughly 23.2%. Though the percentage looks encouraging, extra tailwinds are emerging as looking out over a next 5-year period, with analysts estimating that their earnings will increase annually by 7%. The revenue of the company has risen at an average annualized rate of about 7.9 over the last five years. The company recently recorded a drop of -2.2%, but this figure is rather unattractive.

Let’s briefly check the hedge fund interest towards GVA stock. Vanguard Group Inc. trimmed position in the company after it dumped -0.1% or 4,346,112 shares of its common stock. The hedge fund now owns 4,341,766 shares worth $118,000,000, SEC documents show. QCI Asset Management Inc. NY shored up assets in the stock as 326580 shares have been purchased, increasing its stake by 13.8% to 371,648 shares which are currently valued at $10,060,511. In addition, Holocene Advisors LP recently reported that it now owns 17,566 shares making a total of $475,512 based on the recent price. This refelects a change of 43.3% in their ownership.