Granite Construction executive sells shares worth over $200k

Molly Campbell, a director at Granite Construction Inc . (NYSE:GVA), has recently sold 2,810 shares of common stock at a price of $71.43 per share, amounting to a total transaction value of over $200,718. This sale occurred on August 20, 2024, according to a recent regulatory filing.

Campbell's transaction comes as part of the regular reporting that executives and directors of public companies must complete to disclose their trading activities. After the sale, Campbell's ownership in Granite Construction Inc. stands at 14,713 shares. It should be noted that this total has been adjusted to include dividend equivalents credited to Campbell under the company's equity plans since her last report.

Granite Construction is a heavy construction contractor based in Watsonville, California, known for its work in the infrastructure and transportation sectors. The company has a long-standing presence in the industry and is incorporated in Delaware.

Investors often monitor insider transactions as they can provide insights into an executive's perspective on the company's current valuation and future prospects. Campbell's recent sale may thus be of interest to current and potential shareholders of Granite Construction Inc.

The transactions are publicly disclosed to ensure transparency and maintain fair trading practices in the market. Betty Kwong, acting as attorney-in-fact for Molly C. Campbell, signed off on the filing on the same day the transaction took place.

In other recent news, Granite Construction Incorporated reported a strong second quarter with a notable 20% overall revenue increase and a 60% rise in gross profit. The company's Construction segment also saw a significant 22% revenue boost. Adding to these developments, Granite Construction has announced the strategic acquisition of Dickerson & Bowen, set to close in the third quarter, which is expected to broaden the company's market presence in the Southeast.

The acquisition is part of Granite Construction's plans for growth, which are backed by a $5.6 billion committed and awarded projects portfolio. The company has also narrowed its revenue guidance for 2024 to between $3.9 billion and $4 billion, while maintaining its adjusted EBITDA margin guidance of 9.5% to 11.5%.

Despite potential impacts on Q4 performance due to weather conditions and execution risks, Granite Construction anticipates further organic revenue growth in the latter half of 2024 and into 2025. The company has also expressed plans to increase disclosures around the Materials business in 2025 for better financial visibility and intends to provide future targets for 2025, 2026, and 2027 in the upcoming third quarter.

InvestingPro Insights

As investors evaluate the implications of Molly Campbell's recent stock sale in Granite Construction Inc. (NYSE:GVA), it's beneficial to consider the company's financial health and market performance to gain a broader perspective. According to InvestingPro data, Granite Construction has a market capitalization of approximately $3.06 billion and has experienced a significant revenue growth of 16.84% over the last twelve months as of Q2 2024. This growth trajectory is further underscored by a quarterly revenue increase of 20.47% in Q2 2024, reflecting the company's robust performance in the heavy construction sector.

One InvestingPro Tip highlights that Granite Construction is expected to see net income growth this year, which aligns with the company's positive revenue trends. Additionally, the company's P/E ratio stands at 34.54, with a slight adjustment to 32.09 when considering near-term earnings growth, suggesting a valuation that may be attractive to investors looking for growth potential. It's also noteworthy that two analysts have revised their earnings estimates upwards for the upcoming period, indicating an optimistic outlook on the company's financial performance.

For those interested in further analysis, there are additional InvestingPro Tips available at https://www.investing.com/pro/GVA. These include insights on the company's dividend consistency, liquidity position, and debt levels, as well as performance metrics over various timeframes. Granite Construction has maintained dividend payments for 35 consecutive years, which may appeal to income-focused investors. Furthermore, the company's strong return over the last year, with a price total return of 78.85%, signals a positive sentiment in the market.

For a deeper dive into Granite Construction's financials and market performance, InvestingPro offers a comprehensive set of tools and metrics to assist investors in making informed decisions. With the additional context provided by InvestingPro Insights, stakeholders can better assess the potential impact of insider transactions on their investment strategy.

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