Granite Construction Inc. Is a Sell; Strong Momentum from Option Traders

 Granite Construction Inc. Is a Sell; Strong Momentum from Option Traders

In today’s session Granite Construction Inc. (GVA) recorded an unusually high (1,500) contracts volume of put trades. Someone, most probably a professional was a very active buyer of the November, 2016 put, expecting serious GVA decrease. With 1,500 contracts traded and 334 open interest for the Nov, 16 contract, it seems this is a quite bearish bet. The option with symbol: GVA161118P00050000 closed last at: $3.3 or 20% up. About 30,516 shares traded hands. Granite Construction Inc. (NYSE:GVA) has risen 13.02% since March 8, 2016 and is uptrending. It has outperformed by 3.70% the S&P500.

Analysts await Granite Construction Inc. (NYSE:GVA) to report earnings on November, 7. They expect $0.98 earnings per share, up 27.27% or $0.21 from last year’s $0.77 per share. GVA’s profit will be $38.86M for 11.97 P/E if the $0.98 EPS becomes a reality. After $0.35 actual earnings per share reported by Granite Construction Inc. for the previous quarter, Wall Street now forecasts 180.00% EPS growth.

Granite Construction Inc. (NYSE:GVA) Ratings Coverage

Out of 5 analysts covering Granite Constr (NYSE:GVA), 5 rate it a “Buy”, 0 “Sell”, while 0 “Hold”. This means 100% are positive. $60 is the highest target while $46 is the lowest. The $52.40 average target is 11.70% above today’s ($46.91) stock price. Granite Constr has been the topic of 8 analyst reports since November 24, 2015 according to StockzIntelligence Inc. On Thursday, April 14 the stock rating was initiated by Cowen & Co with “Outperform”. The stock of Granite Construction Inc. (NYSE:GVA) has “Buy” rating given on Wednesday, December 9 by Stifel Nicolaus. The stock of Granite Construction Inc. (NYSE:GVA) has “Buy” rating given on Wednesday, June 29 by M Partners. The firm has “Buy” rating by M Partners given on Tuesday, August 2. The stock has “Outperform” rating given by FBR Capital on Friday, December 11. Maxim Group initiated Granite Construction Inc. (NYSE:GVA) rating on Tuesday, November 24. Maxim Group has “Buy” rating and $50 price target. The rating was maintained by FBR Capital with “Outperform” on Tuesday, August 2. Cowen & Co maintained it with “Outperform” rating and $46 target price in Wednesday, December 2 report.

According to Zacks Investment Research, “Granite Construction, Inc. is a diversified heavy civil constractor and construction materials producer. The Company concentrates on ifrastructure projects including roads, bridges, dams, tunnels, canals and rapid transit facilities. The Company also manufactures asphalt, concrete base rock and other construction materials. The Company has offices in Arizona, Nevada, Utah, Texas, Georgia and California.”

Insitutional Activity: The institutional sentiment decreased to 1.3 in Q2 2016. Its down 0.30, from 1.6 in 2016Q1. The ratio is negative, as 14 funds sold all Granite Construction Inc. shares owned while 62 reduced positions. 28 funds bought stakes while 71 increased positions. They now own 35.44 million shares or 2.55% less from 36.36 million shares in 2016Q1.
Renaissance Technologies Ltd Liability Corp owns 274,000 shares or 0.02% of their US portfolio. The California-based Blackrock Fund Advisors has invested 0.02% in Granite Construction Inc. (NYSE:GVA). Parametric Portfolio Associate Lc owns 54,163 shares or 0% of their US portfolio. Great West Life Assurance Can holds 0% of its portfolio in Granite Construction Inc. (NYSE:GVA) for 5,012 shares. The Minnesota-based Foundry has invested 0.02% in Granite Construction Inc. (NYSE:GVA). Oregon Public Employees Retirement Fund accumulated 13,166 shares or 0.01% of the stock. Deprince Race & Zollo, a Florida-based fund reported 1.16M shares. Boston Prtnrs reported 622,510 shares or 0.04% of all its holdings. Blackrock Mgmt Ltd Liability Corp last reported 264,763 shares in the company. Regions Fin Corporation has 37,708 shares for 0.02% of their US portfolio. Tributary Cap Mgmt Lc accumulated 222,890 shares or 1.48% of the stock. First Trust Advisors Lp has 34,842 shares for 0% of their US portfolio. Wellington Shields Ltd Limited Liability Company reported 55,800 shares or 0.43% of all its holdings. Public Employees Retirement Association Of Colorado holds 0% or 9,178 shares in its portfolio. Moreover, Rowland Company Counsel Adv has 0% invested in Granite Construction Inc. (NYSE:GVA) for 4,700 shares.

Insider Transactions: Since May 25, 2016, the stock had 0 insider purchases, and 4 insider sales for $1.45 million net activity. 1,113 shares were sold by KELSEY DAVID H, worth $56,867 on Tuesday, August 9. Another trade for 6,612 shares valued at $325,155 was sold by Roberts James Hildebrand. DOREY WILLIAM GLENWOOD sold 15,000 shares worth $647,700.

Granite Construction Incorporated is a heavy civil contractor and construction materials producer in the United States. The company has a market cap of $1.86 billion. The Firm operates through three divisions: Construction, Large Project Construction and Construction Materials. It has a 30.13 P/E ratio. The Company’s Construction segment performs construction management, as well as various civil construction projects with a portion of the work focused on new construction and improvement of streets, roads, highways, bridges, site work, underground, power-related facilities, water-related facilities, utilities and other infrastructure projects.

GVA Company Profile

Granite Construction Incorporated, incorporated on January 24, 1990, is a heavy civil contractor and construction materials producer in the United States. The Firm operates through three divisions: Construction, Large Project Construction and Construction Materials. The Firm operates across the nation, serving both public and private sector clients. Within the public sector, it concentrates on heavy-civil infrastructure projects, including the construction of streets, roads, highways, mass transit facilities, airport infrastructure, bridges, trenchless and underground utilities, power-related facilities, water and wastewater facilities, utilities, tunnels, dams and other infrastructure-related projects. Within the private sector, the Company offers site preparation and infrastructure services for residential development, energy development, commercial and industrial sites, and other facilities, as well as provides construction management professional services.

More recent Granite Construction Inc. (NYSE:GVA) news were published by: Nasdaq.com which released: “Granite Construction Gets $39M Northgate Station Contract” on October 10, 2016. Also Fool.com published the news titled: “Granite Construction Inc. Poised to Benefit From FAST Act” on January 14, 2016. Santacruzsentinel.com‘s news article titled: “Business Digest, July 30, 2016: Granite Construction awarded Fresno project” with publication date: July 29, 2016 was also an interesting one.

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