Valmont Industries (NYSE:VMI) Stock Rating Lowered by Wall Street Zen

Key Points

• Wall Street Zen downgraded Valmont Industries from “buy” to “hold,” while the broader analyst consensus remains “Moderate Buy” with an average price target of $587.
• Valmont shares opened at $421.62, down 2.6%, and remain below their 50-day and 200-day moving averages; the stock’s 12-month range is $378.02 to $585.71.
• The company exceeded quarterly EPS expectations, reporting $6.24 versus the $5.70 consensus, while revenue rose 5.5% year over year to $1.10 billion, slightly below estimates.

Valmont Industries (NYSE:VMI - Get Free Report) was downgraded by equities research analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a report issued on Sunday, Wall Street Zen reports.

A number of other brokerages have also issued reports on VMI. JPMorgan Chase & Co. upped their target price on shares of Valmont Industries from $600.00 to $620.00 and gave the stock an "overweight" rating in a research report on Wednesday, July 22nd. Stifel Nicolaus boosted their target price on Valmont Industries from $645.00 to $678.00 and gave the stock a "buy" rating in a research report on Monday, July 20th. Weiss Ratings cut Valmont Industries from a "buy (b)" rating to a "hold (c)" rating in a research note on Wednesday. Finally, Zacks Research lowered shares of Valmont Industries from a "strong-buy" rating to a "hold" rating in a research note on Monday, July 20th. Three research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. According to MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average target price of $587.00.

Valmont Industries Stock Down 2.6%

VMI opened at $421.62 on Friday. The stock has a market cap of $8.07 billion, a P/E ratio of 15.65, a P/E/G ratio of 0.95 and a beta of 1.34. The stock's 50 day moving average price is $465.24 and its 200 day moving average price is $477.25. Valmont Industries has a 12 month low of $378.02 and a 12 month high of $585.71. The company has a debt-to-equity ratio of 0.43, a current ratio of 2.41 and a quick ratio of 1.56.

Valmont Industries (NYSE:VMI - Get Free Report) last announced its earnings results on Tuesday, October 20th. The industrial products company reported $6.24 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $5.70 by $0.54. The business had revenue of $1.10 billion during the quarter, compared to analysts' expectations of $1.12 billion. Valmont Industries had a net margin of 12.05% and a return on equity of 26.25%. The firm's revenue for the quarter was up 5.5% on a year-over-year basis. During the same quarter last year, the company posted $4.98 EPS. As a group, research analysts predict that Valmont Industries will post 23.27 earnings per share for the current year.

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in VMI. BlackRock Inc. bought a new stake in shares of Valmont Industries in the 2nd quarter valued at about $1,141,369,000. Bank of America Corp DE acquired a new position in Valmont Industries in the 2nd quarter valued at $175,408,000. Ninety One UK Ltd grew its stake in shares of Valmont Industries by 4.6% in the third quarter. Ninety One UK Ltd now owns 198,650 shares of the industrial products company's stock valued at $91,971,000 after acquiring an additional 8,651 shares in the last quarter. Quantinno Capital Management LP increased its holdings in shares of Valmont Industries by 35.7% during the first quarter. Quantinno Capital Management LP now owns 160,180 shares of the industrial products company's stock worth $64,003,000 after purchasing an additional 42,126 shares during the period. Finally, Bank of New York Mellon Corp acquired a new position in Valmont Industries in the 2nd quarter valued at $83,723,000. Institutional investors and hedge funds own 87.84% of the company's stock.

About Valmont Industries

Valmont Industries, Inc is a global manufacturer of engineered products and services serving the infrastructure and agricultural markets. Founded in 1946 and headquartered in Omaha, Nebraska, the company operates through businesses focused on infrastructure, coatings, and water management.

Its infrastructure products include utility and transmission structures, lighting and traffic poles, highway and transportation structures, and related support systems. Valmont also provides hot-dip galvanizing and other protective coatings designed to extend the service life of steel products used in industrial, infrastructure, and commercial applications.

In agriculture, the company manufactures mechanized irrigation equipment, including center-pivot and linear irrigation systems, as well as agricultural products and services intended to support water conservation and crop production.

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