Overview of the Recent Transaction
On September 30, 2024, Fuller & Thaler Asset Management, Inc. made a significant adjustment to its investment portfolio by reducing its stake in Granite Construction Inc (GVA, Financial). The firm sold 461,796 shares at a price of $79.28 each. This transaction decreased Fuller & Thaler's holding by 16.36%, leaving them with a total of 2,361,660 shares in the company. This move reflects a strategic shift, impacting 0.16% of their portfolio, with Granite Construction now constituting 0.8% of Fuller & Thaler's total investments and representing 5.41% of all shares held in GVA.
Fuller & Thaler Asset Management, Inc. Profile
Founded in 1993 and based in San Mateo, California, Fuller & Thaler Asset Management, Inc. is an employee-owned investment firm. With a team of 16 managing 61 discretionary accounts totaling over $2.8 billion in assets, the firm has seen substantial growth from $1 billion five years ago. Fuller & Thaler employs a bottom-up investment strategy focused on micro to small-cap growth and value stocks across global public equity markets. The firm predominantly invests in the financial services and industrials sectors, with financial services alone comprising nearly a quarter of its asset allocation. High net worth individuals form the majority of its clientele, alongside pensions, charities, and corporate entities.
About Granite Construction Inc.
Granite Construction Inc., headquartered in the USA, operates in the heavy civil infrastructure sector. Since its IPO on April 1, 1990, the company has specialized in constructing roads, highways, bridges, and other infrastructure projects. It also provides site preparation services for various developments. With a market capitalization of $4.25 billion, Granite Construction primarily generates revenue through its Construction and Materials segments.
Impact of the Trade on Fuller & Thaler's Portfolio
The recent sale marks a notable reduction in Fuller & Thaler's exposure to Granite Construction. This adjustment could be a strategic response to the stock's current valuation and market performance, considering GVA's stock is deemed significantly overvalued with a GF Value of $43.97, while the current stock price stands at $97.23.
Granite Construction's Market Performance
Granite Construction has shown remarkable growth with a year-to-date stock price increase of 93.03%. The stock has surged 22.64% since Fuller & Thaler's transaction date, significantly outperforming the market. Since its IPO, the stock has appreciated by 1724.2%, underscoring its long-term value growth.
Analysis of the Construction Sector and Market Dynamics
Fuller & Thaler's investment in Granite Construction aligns with its significant holdings in the industrials sector, reflecting a strategic interest in infrastructure and construction services. The construction sector is currently experiencing robust growth, driven by increased infrastructure spending and development projects across the United States.
Other Notable Investors in Granite Construction
Granite Construction also attracts other prominent investors like Fisher Asset Management, LLC, George Soros (Trades, Portfolio), Mario Gabelli (Trades, Portfolio), and Joel Greenblatt (Trades, Portfolio). Each investor's strategy and holding size vary, providing a diverse range of insights into the stock's appeal and potential.
Conclusion
Fuller & Thaler Asset Management's recent reduction in its Granite Construction stake represents a strategic portfolio realignment. This move, amidst the stock's significant overvaluation and robust market performance, highlights the firm's responsive investment approach. As the construction sector continues to grow, the implications of such investment shifts by major stakeholders like Fuller & Thaler will be critical to watch for insights into broader market trends and opportunities.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
