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Tuesday, December 10, 2019
Great Lakes Dredge & Dock (GLDD)
Renewed Confidence in Dredging Market Outlook
Great Lakes Dredge & Dock is a marine and environmental infrastructure contractor, and the largest dredging company in the United States. Headquartered in suburban Chicago, the company provides port expansion and maintenance, coastal restoration, river dredging and environmental restoration for public and private entities worldwide. In June 2019, the Environmental & industrial (E&I) business was sold for $17.5 million in cash and the company is now pure play on the dredging market.
Poe Fratt, Senior Research Analyst, Noble Capital Markets, Inc.
Refer to the full report for price target, fundamental analysis, and rating.
Confidence renewed after investor meetings with the CEO and CFO. 1) Favorable dredging outlook due to funding expansion more than offsets below average win rate and added competition; 2) LNG and wind projects are positives and potential for new awards, including Corpus Christi on/about December 16th, is high; 3) Restructuring impact is durable. Sale of Environmental & Industrial business removed an underperformer; 4) Capital allocation is growth oriented and free cash flow should fund new build(s) in 2020-1; and 5) Improved financials accelerates refinancing of existing debt at first call date in May 2020.
Is insider buying last week a good signal? We think so. Privet Fund, controlled by board member Ryan Levenson, bought a total of 100k shares last week at an average price of $10.61/share and shares owned by Privet increased by more than 50% to 290k shares. While it is always difficult to pinpoint the exact reasons, we interpret the...
This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.