Guggenheim Begins Coverage on Ducommun (NYSE:DCO)

Key Points

• Guggenheim initiated coverage of Ducommun with a “buy” rating and a $246 price target, implying 44.29% upside from the prior close.
• Analyst sentiment is broadly positive: Ducommun has an average “Buy” rating and a consensus price target of $201.50, supported by recent earnings that exceeded estimates and 11% year-over-year revenue growth.
• Ducommun shares opened at $170.49, while institutional investors own a substantial 92.15% stake; CEO Stephen Oswald recently sold 2,500 shares at an average price of $203.95.

Guggenheim began coverage on shares of Ducommun (NYSE:DCO - Get Free Report) in a report issued on Friday, Marketbeat.com reports. The firm set a "buy" rating and a $246.00 price target on the aerospace company's stock. Guggenheim's price target indicates a potential upside of 44.29% from the company's previous close.

Several other research analysts have also recently issued reports on the company. B. Riley Financial restated a "buy" rating on shares of Ducommun in a research note on Friday, August 7th. Zacks Research upgraded shares of Ducommun from a "hold" rating to a "strong-buy" rating in a report on Monday, August 10th. Weiss Ratings lowered shares of Ducommun from a "hold (c)" rating to a "hold (c-)" rating in a research report on Friday, September 18th. Truist Financial lifted their price objective on shares of Ducommun from $150.00 to $209.00 and gave the company a "buy" rating in a research note on Thursday, August 13th. Finally, Citigroup reaffirmed a "buy" rating on shares of Ducommun in a report on Wednesday, August 12th. Two research analysts have rated the stock with a Strong Buy rating, four have issued a Buy rating and two have assigned a Hold rating to the company's stock. According to data from MarketBeat, the company presently has an average rating of "Buy" and an average target price of $201.50.

Ducommun Price Performance

Shares of DCO opened at $170.49 on Friday. The company has a debt-to-equity ratio of 0.39, a current ratio of 3.36 and a quick ratio of 2.38. The company's fifty day moving average price is $178.94 and its 200-day moving average price is $162.26. Ducommun has a 1-year low of $84.76 and a 1-year high of $210.39. The firm has a market capitalization of $2.57 billion, a PE ratio of -91.17 and a beta of 1.03.

Ducommun (NYSE:DCO - Get Free Report) last issued its earnings results on Thursday, August 6th. The aerospace company reported $1.18 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.98 by $0.20. Ducommun had a positive return on equity of 9.20% and a negative net margin of 3.10%. The company had revenue of $224.49 million during the quarter, compared to analyst estimates of $214.32 million. During the same quarter last year, the business posted $0.88 EPS. The firm's quarterly revenue was up 11.0% on a year-over-year basis. On average, equities research analysts predict that Ducommun will post 4.26 EPS for the current year.

Insider Buying and Selling

In other Ducommun news, CEO Stephen Oswald sold 2,500 shares of the company's stock in a transaction on Tuesday, August 18th. The shares were sold at an average price of $203.95, for a total transaction of $509,875.00. Following the completion of the transaction, the chief executive officer directly owned 383,864 shares in the company, valued at approximately $78,289,062.80. This represents a 0.65% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Insiders own 5.00% of the company's stock.

Institutional Trading of Ducommun

Several institutional investors have recently modified their holdings of the stock. Meros Investment Management LP lifted its stake in Ducommun by 4.8% in the 4th quarter. Meros Investment Management LP now owns 174,485 shares of the aerospace company's stock worth $16,599,000 after purchasing an additional 7,945 shares in the last quarter. Legal & General Group Plc acquired a new position in shares of Ducommun during the 2nd quarter worth approximately $3,350,000. Hsbc Holdings PLC grew its position in shares of Ducommun by 124.9% in the first quarter. Hsbc Holdings PLC now owns 13,091 shares of the aerospace company's stock valued at $1,569,000 after purchasing an additional 7,269 shares in the last quarter. Calamos Advisors LLC acquired a new stake in shares of Ducommun in the first quarter valued at approximately $960,000. Finally, Paradigm Capital Management Inc. NY acquired a new stake in shares of Ducommun in the second quarter valued at approximately $142,704,000. Institutional investors and hedge funds own 92.15% of the company's stock.

Ducommun Company Profile

Ducommun Incorporated NYSE: DCO is a manufacturing company that designs, engineers and produces complex components and assemblies for the aerospace and defense industries. Its products include structural components, electronic and electromechanical systems, wiring and interconnect assemblies, and other specialized parts used in aircraft, spacecraft, missiles and military systems.

The company serves commercial aerospace, defense, space, medical and select industrial markets. Its capabilities include precision machining, forming, composite manufacturing, electronics manufacturing, circuit-card assembly, testing and systems integration.