What Happened?

Shares of infrastructure construction company Primoris (NYSE: PRIM) fell 3.1% in the afternoon session after Guggenheim downgraded the stock to Neutral from a Buy rating. 

The analyst noted that the company's upcoming third-quarter report was unlikely to push the stock higher. This view was based on the performance of Primoris' power delivery business, which often benefited from weather-related damage to electric utility infrastructure. With an absence of violent summer weather, that business segment was not expected to provide a strong catalyst. The firm also pointed out that the shares had already increased more than 80% in 2025.

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.

What Is The Market Telling Us

Primoris’s shares are somewhat volatile and have had 13 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 previous big move we wrote about was 2 days ago when the stock gained 3.1% on the news that a softened tone from President Donald Trump on U.S.-China relations boosted investor sentiment. The positive shift followed a weekend post on Truth Social where Trump stated, "Don't worry about China, it will all be fine!" and expressed a desire to help rather than hurt the country's economy. This statement provided significant relief to markets that had ended the prior week with steep losses. In response, the Nasdaq Composite jumped 2.2%, the S&P 500 gained 1.6%, and the Dow Jones Industrial Average closed 1.3% higher, as investors' fears of escalating trade tensions subsided.

Primoris is up 80.5% since the beginning of the year, and at $138.77 per share, it is trading close to its 52-week high of $140.60 from October 2025. Investors who bought $1,000 worth of Primoris’s shares 5 years ago would now be looking at an investment worth $6,987.

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