Molly Campbell, a director at Granite Construction Inc . (NYSE:GVA), recently sold a portion of her holdings in the company. According to a filing with the Securities and Exchange Commission, Campbell sold 1,670 shares of common stock on November 8, 2024, at a price of $96.71 per share. This transaction amounted to a total sale value of $161,505.
Following the sale, Campbell holds 13,051 shares of Granite Construction. The adjustment in her holdings includes dividend equivalents credited under the company's equity plans.
In other recent news, Granite Construction Incorporated reported a robust financial performance in the third quarter of 2024. The company announced a year-over-year increase in revenue of 14% to $1.1 billion, driven by strong operations and an increased backlog. The company's executives, including CEO Kyle Larkin, also detailed plans for future growth, including strategic acquisitions like the recent purchase of Dickerson & Bowen.
In addition to these developments, Granite Construction's backlog rose to $5.6 billion, a $44 million increase. The company also projected organic revenue growth of 6% to 8% annually through 2027 and expects the adjusted EBITDA margin to reach 12%-14% by 2027. However, they noted some project delays that could impact future quarters.
Regarding analysts' feedback, the company's strong cash position of $472 million available for acquisitions and shareholder returns was highlighted. Despite some bearish highlights like an increase in SG&A as a percentage of revenue, bullish notes included high single-digit growth expected for aggregates and low single-digit growth for asphalt into 2025.
In summary, these recent developments reflect Granite Construction's strategic growth plans and financial health. As CEO Kyle Larkin emphasized, the company's focus on disciplined project selection, operational efficiency, and strategic acquisitions positions it well for continued success in the infrastructure sector.
InvestingPro Insights
Granite Construction Inc. (NYSE:GVA) has been experiencing significant momentum in the market, as evidenced by its recent stock performance and financial metrics. According to InvestingPro data, the company's stock has shown remarkable strength, with a 115.42% total return over the past year and a 56.68% return in the last six months. This upward trajectory aligns with the timing of director Molly Campbell's recent stock sale.
The company's financial health appears robust, with revenue growth of 17.81% in the last twelve months as of Q3 2024, reaching $3.96 billion. Additionally, Granite Construction's EBITDA growth of 33.71% over the same period suggests improving operational efficiency.
InvestingPro Tips highlight that Granite Construction has maintained dividend payments for 35 consecutive years, indicating a commitment to shareholder returns. This could be particularly relevant to investors considering the director's stock sale in the context of long-term value.
However, it's worth noting that the stock is trading at a relatively high P/E ratio of 44.5 (adjusted for the last twelve months as of Q3 2024), which may suggest that the stock is currently priced at a premium. This valuation metric could provide context for the director's decision to sell shares at the current price levels.
For investors seeking a more comprehensive analysis, InvestingPro offers 20 additional tips for Granite Construction, providing a deeper dive into the company's financial position and market outlook.
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