Granite Story

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GVA -- USA Stock  

USD 39.50  0.10  0.25%

Today we will go over Granite Construction. Why are we still confident in our hopes for a recovery. On the 30th of March the company is traded for 39.25. Granite Construction has historical hype elasticity of 0.53. The average price elasticity to hype of competition is about 0.35. The entity is anticipated to increase in value after the next headline, with the price going to jump to 40.61. The current volatility of media hype impact on Granite Construction stock price is is way over 100 percent making price predictions on social media along less reliable. The price jump on the next news is projected to be 1.32%, whereas the daily expected return is currently at 0.71%. The volatility of related hype on Granite Construction is about 707.41% with expected price after next announcement by competition of 39.6 Considering the 30-day investment horizon the next anticipated press release will be in about 9 days.
Published over two weeks ago
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Is Granite Construction (NYSE:GVA) gaining more confidence from investors?
On a scale of 0 to 100, Granite Construction holds a performance score of 14. The company retains a Market Volatility (i.e. Beta) of -0.1786, which attests to not very significant fluctuations relative to the market. Let's try to break down what Granite's beta means in this case. As returns on the market increase, returns on owning Granite Construction are expected to decrease at a much lower rate. During the bear market, Granite Construction is likely to outperform the market. Although it is vital to follow Granite Construction current price history, it is good to be conservative about what you can do with the information regarding equity current price movements. The philosophy in determining future performance of any stock is to evaluate the business as a whole together with its past performance, including all available fundamental and technical indicators. We have found twenty-seven technical indicators for Granite Construction, which you can use to evaluate the performance of the firm. Please utilizes Granite Construction sortino ratio, semi variance, and the relationship between the information ratio and value at risk to make a quick decision on whether Granite Construction current trending patterns will revert.
The successful prediction of Granite Construction stock price could yield a significant profit to investors. But is it possible? The efficient-market hypothesis suggests that all published stock prices of traded companies, such as Granite Construction, already reflect all publicly available information. This academic statement is a fundamental principle of many financial and investing theories used today. However, the typical investor usually disagrees with a 'textbook' version of this hypothesis and continually tries to find mispriced stocks to increase returns. We use internally-developed statistical techniques to arrive at the intrinsic value of Granite Construction based on Granite Construction hews, social hype, general headline patterns, and widely used predictive technical indicators.
We also calculate exposure to Granite Construction's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Granite Construction's related companies.

Use Technical Analysis to project Granite expected Price

Granite Construction technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.
A focus of Granite Construction technical analysis is to determine if market prices reflect all relevant information impacting that market. A technical analyst looks at the history of Granite Construction trading pattern rather than external drivers such as economic, fundamental, or social events. It is believed that price action tends to repeat itself due to investors' collective, patterned behavior. Hence technical analysis focuses on identifiable price trends and conditions. More Info...

How Granite utilizes its cash?

To perform a cash flow analysis of Granite Construction, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Granite Construction is receiving and how much cash it distributes out in a given period. The Granite Construction cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Granite Construction Net Cash Flow from Operations is projected to increase significantly based on the last few years of reporting. The past year's Net Cash Flow from Operations was at 268.46 Million

Granite Construction exotic insider transaction detected

Legal trades by Granite Construction insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Granite insider trading alert for general transaction of common stock by Dowd Brian R, Senior Vice President, on 15th of March 2021. This event was filed by Granite Construction Inc with SEC on 2021-03-15. Statement of changes in beneficial ownership - SEC Form 4 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Another angle On Granite Construction

The entity reported the last year's revenue of 3.5 B. Reported Net Loss for the year was (172.51 M) with profit before taxes, overhead, and interest of 221.68 M.
 2017 2018 2020 (projected)
Long Term Debt to Equity0.190.250.36
Interest Coverage15.66.647.64

Deferred Revenue Breakdown

Granite Construction Deferred Revenue is increasing over the years with stable fluctuation. Deferred Revenue is expected to dwindle to about 112.6 M. Deferred Revenue usually refers to a component of Total Liabilities representing the carrying amount of consideration received or receivable on potential earnings that were not recognized as revenue; including sales; license fees; and royalties; but excluding interest income. Granite Construction Deferred Revenue is projected to increase significantly based on the last few years of reporting. The past year's Deferred Revenue was at 121.63 Million
2012
2013
2014
2015
2016
2017
2020
2021
2012139.69 Million
2013138.38 Million
2014108.99 Million
201592.52 Million
201697.52 Million
2017135.15 Million
2020121.63 Million
2021112.61 Million

Over 3 percent rise for Granite Construction. What does it mean for investors?

Mean deviation is down to 2.44. It may suggest a possible volatility slip. Granite Construction currently demonstrates below-average downside deviation. It has Information Ratio of 0.14 and Jensen Alpha of 0.62. However, we advise investors to further question Granite Construction expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Granite Construction's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Granite Construction's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Our Takeaway on Granite Construction Investment

Whereas other companies under the engineering & construction industry are still a bit expensive, Granite Construction may offer a potential longer-term growth to investors. While some investors may not share our view we believe that the current risk-reward utility is not appealing enough to do any trading. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Granite Construction.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Ellen Johnson do not own shares of Granite Construction. Please refer to our Terms of Use for any information regarding our disclosure principles.

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