FBR Capital Reiterates a Buy Rating on Orion Group Holdings

By Jason Carr

In a report released yesterday, Alex Rygiel from FBR Capital reiterated a Buy rating on Orion Group Holdings (NYSE: ORN), with a price target of $12. The company’s shares opened today at $7.80.

Rygiel commented:

“ORN announced 4Q16 results below our and consensus’ estimates, mostly due to a one-time charge related to the accounting treatment of a dredging contract with significantly differing site conditions than anticipated. Even adjusting for this one- time item, EBIT were below our estimate due to higher-than-expected SG&A costs, which are expected to continue into 2017. Backlog at the end of the year was a record $424M (+21% YOY), which positions ORN for continued growth in 2017; however, we lower our estimates for 2017, despite the record backlog, due to ORN’s continued impact from permitting delays, mostly out of the USACE, and higher SG&A expense assumptions.”

According to TipRanks.com, Rygiel is a 5-star analyst with an average return of 16.0% and a 74.4% success rate. Rygiel covers the Industrial Goods sector, focusing on stocks such as Granite Construction Inc, Masonite International, and BMC Stock Holdings.

Orion Group Holdings has an analyst consensus of Hold, with a price target consensus of $9.

The company has a one year high of $11.11 and a one year low of $4.36. Currently, Orion Group Holdings has an average volume of 196.2K.

Based on the recent corporate insider activity of 9 insiders, corporate insider sentiment is neutral on the stock. Most recently, in December 2015, Mark Stauffer, the CEO of ORN bought 1,750 shares for a total of $6,555.

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