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Primoris CEO McCormick sells $1.22 million in stock

Published 11/16/2024, 07:34 AM
PRIM
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DALLAS—Thomas Edward McCormick (NYSE:MKC), CEO and President of Primoris Services Corp (NASDAQ:NYSE:PRIM), sold 15,000 shares of the company's common stock on November 13, according to a recent SEC filing. The shares were sold at prices ranging from $81.14 to $81.36, totaling approximately $1.22 million. Following the transaction, McCormick holds 61,390 shares directly.

Primoris Services Corp, headquartered in Dallas, operates in the construction sector, focusing on water, sewer, pipeline, and power line construction.

In other recent news, Primoris Services Corporation reported impressive Q3 2024 results, with record revenue surpassing $1.6 billion, a 7.8% increase from the previous year. This robust financial performance was largely driven by the Energy and Utilities segments. Notably, the Energy segment saw a surge due to solar activities, while the Utilities segment experienced growth from communications projects.

The company also reported a record backlog of approximately $2.5 billion, primarily driven by solar and industrial sectors. On the financial front, Primoris Services Corporation's cash flow from operations for the quarter stood at $222 million, with year-to-date figures surpassing full-year 2023. Moreover, the company raised its full-year EPS guidance to $2.85 to $3 per share.

Analysts noted the company's strong liquidity, with nearly $625 million available for growth initiatives. Despite expectations of a seasonal slowdown, the company remains optimistic for Q4 2024 and the year 2025. The company's renewables business surpassed $1 billion in revenue, with a backlog of $2.9 billion. Looking ahead, the company anticipates growth in the renewables market and plans to maintain a book-to-bill ratio above 1x.

InvestingPro Insights

Primoris Services Corp (NASDAQ:PRIM) has demonstrated impressive financial performance, aligning with CEO Thomas Edward McCormick's recent stock sale. According to InvestingPro data, the company's market capitalization stands at $4.19 billion, reflecting its substantial presence in the construction sector.

The company's strong financial health is evident in its revenue growth of 11.07% over the last twelve months, reaching $6.14 billion. This growth trajectory is supported by a solid EBITDA growth of 13.83% during the same period, indicating improved operational efficiency.

InvestingPro Tips highlight that Primoris has maintained dividend payments for 17 consecutive years, showcasing its commitment to shareholder returns. This is particularly noteworthy given the company's impressive stock performance, with a 148.26% price total return over the past year.

Despite the recent insider sale, Primoris appears to be in a strong position. The company is trading at a low P/E ratio relative to its near-term earnings growth, suggesting potential undervaluation. Additionally, analysts predict the company will remain profitable this year, which could further support its stock price.

For investors seeking more comprehensive insights, InvestingPro offers 12 additional tips for Primoris Services Corp, providing a deeper understanding of the company's financial health and market position.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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