Insider Transaction: Celeste B. Mastin Sells $529K Worth Of Granite Construction Shares

Celeste B. Mastin, Board Member at Granite Construction GVA, executed a substantial insider sell on December 12, according to an SEC filing.

What Happened: A Form 4 filing from the U.S. Securities and Exchange Commission on Thursday showed that Mastin sold 5,435 shares of Granite Construction. The total transaction amounted to $529,586.

In the Friday's morning session, Granite Construction's shares are currently trading at $95.03, experiencing a down of 0.51%.

About Granite Construction

Granite Construction Inc engages in the construction and development of various infrastructure projects on behalf of public and private clients in the United States. It focuses on heavy civil infrastructure projects, including roads, highways, transit facilities, airports, bridges and other infrastructure projects. In addition, the company performs site preparation and infrastructure services for residential development, energy development, and other facilities. The majority of revenue is derived from the company's Construction operating segment, with the remainder derived from its Materials segment.

Granite Construction's Financial Performance

Revenue Growth: Granite Construction's remarkable performance in 3 months is evident. As of 30 September, 2024, the company achieved an impressive revenue growth rate of 14.21%. This signifies a substantial increase in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Industrials sector.

Interpreting Earnings Metrics:

• Gross Margin: The company faces challenges with a low gross margin of 15.91%, suggesting potential difficulties in cost control and profitability compared to its peers.

• Earnings per Share (EPS): Granite Construction's EPS is significantly higher than the industry average. The company demonstrates a robust bottom-line performance with a current EPS of 1.81.

Debt Management: With a high debt-to-equity ratio of 0.82, Granite Construction faces challenges in effectively managing its debt levels, indicating potential financial strain.

Valuation Analysis:

• Price to Earnings (P/E) Ratio: Granite Construction's P/E ratio of 40.47 is below the industry average, suggesting the stock may be undervalued.

• Price to Sales (P/S) Ratio: The P/S ratio of 1.41 is lower than the industry average, implying a discounted valuation for Granite Construction's stock in relation to sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Granite Construction's EV/EBITDA ratio at 14.28 suggests potential undervaluation, falling below industry averages.

Market Capitalization: With restricted market capitalization, the company is positioned below industry averages. This reflects a smaller scale relative to peers.

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Uncovering the Importance of Insider Activity

Insider transactions, although significant, should be considered within the larger context of market analysis and trends.

When discussing legal matters, the term "insider" refers to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as stipulated in Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are required to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.

A new purchase by a company insider is a indication that they anticipate the stock will rise.

On the other hand, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.

Exploring Key Transaction Codes

In the domain of transactions, investors frequently turn their focus to those taking place in the open market, as meticulously outlined in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of Granite Construction's Insider Trades.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.