TPC - Tutor Perini: Heed The Insiders

2024-07-14 13:08:51 ET

Summary

• The stock of construction concern Tutor Perini has risen some 70% since the company posted blowout Q1 results in late April.
• The company is benefiting from the huge surge in governmental funding for infrastructure projects.
• However, insider selling has seen a notable pickup during this rally, the stock is notoriously cyclical, and debt service costs are increasing.
• Can the shares continue to rise, or is profit taking ahead?  An analysis around Tutor Perini follows in the paragraphs below.

I have money on construction giant Tutor Perini ( TPC ) several times over the past years by establishing a position in the stock via covered call orders whenever the equity has a significant dip, which has happened a few times over that the past half decade. I am not currently in the shares as my previous holdings have expired in the money. In recent months, the stock has had a huge up move after blowout Q1 results. Several insiders have used the rally to substantially reduce their holdings in the equity. Has the stock become overbought? An analysis follows below....

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