What Happened?
Shares of infrastructure construction company Primoris (NYSE: PRIM) fell 3.4% in the morning session after the company's stock likely moved on profit-taking after a recent run-up, even as a major Wall Street firm increased its price forecast.
The specialty contractor's shares saw a decline despite JPMorgan raising its price target on the stock to $102 from $90, while maintaining an "Overweight" rating. The bank's positive outlook was based on strong end-market demand and a constructive view of the company's earnings and order activity for the second half of 2025. The stock's pullback may have been technical in nature, as investors possibly secured profits following a period of strong performance. This move came after a 13F filing revealed that institutional investor GW&K Investment Management LLC had trimmed its position in the company during the first quarter.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Primoris? Access our full analysis report here, it’s free.
What Is The Market Telling Us
Primoris’s shares are quite volatile and have had 18 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 5 months ago when the stock gained 10.5% on the news that the company reported impressive fourth-quarter results that exceeded analysts' backlog, revenue, EPS, and EBITDA estimates. Revenue grew by 14.9% y/y, driven primarily by strong performance in the Energy and Utilities segments. Operating income saw a modest increase, as gross margins in the utilities segment improved significantly.
Looking ahead, full-year EPS and EBITDA guidance exceeded Wall Street estimates, as the company ended the year with a record backlog of $11.9 billion, an 8.9% increase from the prior year. Overall, it was a strong quarter.
Primoris is up 12.8% since the beginning of the year, and at $86.73 per share, it is trading close to its 52-week high of $89.03 from January 2025. Investors who bought $1,000 worth of Primoris’s shares 5 years ago would now be looking at an investment worth $5,190.
Unless you’ve been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) semiconductor stock benefiting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story.
