In a recent move, David Lee King, a director at Primoris Services Corp (NASDAQ:NYSE:PRIM), a company known for its work in water, sewer, pipeline, and power line construction, sold shares worth approximately $132,150. The transaction took place on June 14, 2024, and involved 2,500 shares of common stock at a price of $52.86 per share.
This sale has adjusted King's holdings in the company to a total of 27,517 shares of Primoris Services Corp's common stock. The details of the transaction were made public through a Form 4 filing with the Securities and Exchange Commission, which was filed on June 17, 2024.
Primoris Services Corp, with its headquarters in Dallas, Texas, has been a notable player in the construction sector, particularly focusing on infrastructure projects across various industries. The company has seen various changes in share ownership by its executives and directors over time, which is often a point of interest for investors tracking insider trading activities.
The stock sale by David Lee King represents a notable change in his investment in the company, providing the market with insights into the trading actions of Primoris Services Corp's insiders. As with all insider transactions, this event is closely watched by investors seeking to understand the implications for the company's stock performance and future prospects.
In other recent news, Primoris Services Corporation reported a robust first quarter for 2024, with improved revenues and margins. The company's growth was driven by increased investment in North American infrastructure, particularly in energy transition, electricity demand, grid modernization, and facility construction for supply chain shifts. Primoris also highlighted a strong backlog of $10.6 billion and is optimistic about hitting the higher end of its full-year guidance range.
The company's strategic focus for the next three years includes growing gross profit and improving operating cash flow through investments in renewables and power delivery. Despite a decrease in fixed backlog of $359 million due to timing of booking new solar and industrial projects, Primoris anticipates backlog growth to resume in upcoming quarters.
On the downside, the company's pipeline business is expected to have a down year despite an increase in bid activity. Additionally, Primoris is winding down three small businesses which are expected to generate $90 million in revenue. However, the company reported a cash flow improvement of $87 million compared to the previous year and maintains a strong liquidity position with $451 million, including cash and available borrowing capacity. These are some of the recent developments for Primoris Services Corporation.
InvestingPro Insights
Primoris Services Corp (NASDAQ:PRIM) has demonstrated a robust financial performance with a significant return over the last year, as indicated by an impressive 81.25% one-year price total return. The company's stock has also experienced a large price uptick over the last six months, boasting a 61.46% six-month price total return, underlining investor confidence in its operations and growth trajectory. Furthermore, Primoris Services Corp has rewarded its shareholders by maintaining dividend payments for 17 consecutive years, showcasing its commitment to returning value, with a current dividend yield of 0.45%.
Despite the recent insider sale by Director David Lee King, the company's fundamentals remain strong. According to InvestingPro data, the company has a market capitalization of $2.89 billion and has seen a revenue growth of 19.99% over the last twelve months as of Q1 2024. Additionally, with a P/E ratio of 19.53, it appears to be trading at a high valuation relative to near-term earnings growth, which is an important consideration for potential investors.
An InvestingPro Tip suggests that analysts have revised their earnings upwards for the upcoming period, indicating a positive outlook on the company's profitability. Moreover, Primoris Services Corp has been profitable over the last twelve months, which could be a reassuring factor for investors considering the recent insider trading activity.
For investors interested in a deeper analysis, there are additional InvestingPro Tips available that could provide further insights into Primoris Services Corp's financial health and future performance. To explore these tips and gain a comprehensive understanding of the company's investment potential, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at https://www.investing.com/pro/PRIM.
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