Clearbridge Investments Decreases Stake in Primoris Services

May 26, 2023 – Clearbridge Investments LLC has released some information regarding its holdings of Primoris Services Co. (NASDAQ:PRIM). The investment firm announced that it has decreased its stake by 1.4% during the fourth quarter of the previous year. Clearbridge Investments owned as much as 855,352 shares of Primoris Services’ stock after selling off 12,241 shares within the same period. As of its most recent SEC filing, the fund now owns only 1.61% of the construction company’s worth at $18,766,000.

The announcement followed shortly after Primoris Services recently disclosed its quarterly dividend. Shareholders who were recorded on Friday, June 30th will receive a $0.06 dividend on Friday, July 14th. This represents an annual yield of 0.89%, with a dividend payout ratio of 9.52%. Analysts have given their views on PRIM’s shares in recent times too.

In April this year, The Goldman Sachs Group raised Primoris Services to a “neutral” rating from “sell,” along with upping its price objective for the stock from $22.50 to $27 per share in a research report released on Monday, April 3rd ÜBS Group also increased their target price for PRIM from $29 to $34 and DA Davidson did so similarly just two months before that (from $27 to $34).

However, StockNews.com recently lowered Primoris Services’ rating from “buy” to “hold” on May11th following previously mentioned rise in price objectives by other institutions earlier this year.

Primoris Services has been committed to delivering quality performance since it became publicly traded company years ago and seemed indifferent regardless if it experiences increased or decreased fluctuations when clearing regulatory hurdles with stakeholders such as those like Clearbridge Investments LLC.

The move comes amid mixed fortune for Primoris Services, whose stock has been performing well in recent years. Nonetheless, the decision made an impression on its shareholders, leaving some to speculate about the company’s future trajectory. In any case, Primoris Service seems committed to maintaining its position as a leader in the construction industry regardless of external market forces or fund managers’ portfolio restrictions.

Institutional Investors and Corporate Insiders Show Interest in Primoris Services

Primoris Services, a construction company, has been seeing a lot of attention from large investors recently. Goldman Sachs Group Inc., Invesco Ltd., Wellington Management Group LLP, Citadel Advisors LLC, and Dimensional Fund Advisors LP have all increased their stakes in Primoris Services over the last several quarters. With a total of 88.14% of the stocks currently owned by institutional investors and hedge funds, it seems that Primoris Services is making big moves within the financial industry.

Additionally, corporate insiders have been selling shares of the company as well. Directors Stephen C. Cook and David Lee King sold a combined total of 17,000 shares in March alone, worth upwards of $400,000. However, only 1.40% of the stock is currently owned by corporate insiders.

Despite all this activity surrounding its shares, Primoris Services recently announced a quarterly dividend to be paid on July 14th to shareholders of record on June 30th. The dividend payout ratio (DPR) for this dividend is presently at 9.52%. At present PRIM is trading at $26.90 per share, with a market capitalization value of $1.43 billion.

In terms of earnings news for the quarter ending May 9th, Primoris Services reported earnings per share (EPS) of $0.18 – above estimates by $0.26 – and revenue for the quarter was recorded at $1.26 billion versus an estimated $1.07 billion figure.

With impressive gains in investment increasing every fiscal year thus far and positive financial reporting for Q2 under its belt already in 2023; it begs the question: what comes next for Primoris Services? Only time will tell as investors eagerly watch to see how this construction company fares in an ever-changing business environment as well as ascertaining if they maintain or accelerate their upward trajectory with new acquisitions and expansion opportunities in sight.