Primoris Services Corporation (NYSE:PRIM) shares face volatility on Friday. This follows a massive two-day sell-off earlier this week. The stock plummeted nearly 50% through Thursday.

• Primoris Services stock is trending lower. Why is PRIM stock trading lower?

Analyst Target Cuts

Wall Street reacted swiftly on Thursday. Wells Fargo maintained an Equal-Weight rating but lowered its price target to $118. Needham kept a Buy rating while dropping its target to $188. Keybanc lowered its target to $137 on Wednesday.

Renewable Segment Struggles

Disappointing first-quarter results sparked the decline. CEO Koti Vadlamudi cited “cost pressures on a limited number of renewables projects” for the weakness. Operating income fell to $24.4 million from $70.4 million year-over-year.

Earnings and Revenue Miss

Primoris reported adjusted earnings of 59 cents per share. This missed the 84-cent analyst consensus. Revenue hit $1.56 billion, falling short of the $1.732 billion expected by the market.

Drastic Guidance Slash

The company cut its full-year adjusted earnings per share forecast. The new range sits at $4.80–$5, down from $5.80–$6.

Management noted these renewables issues are isolated. Most of the portfolio performs “in line or ahead of expectations.”

Technical Analysis

The bigger technical story is trend deterioration: at $104.70, Primoris is trading 36.6% below its 20-day SMA, 31.4% below its 50-day SMA, and 23% below its 200-day SMA.

• Key Resistance: $120
• Key Support: $87

PRIM Stock Price Activity: Primoris Services shares were down 3.40% at $104.31 at the time of publication on Friday, according to Benzinga Pro data.

Image via Shutterstock