Martin Marietta Materials, Inc. (NYSE:MLM) Stock Now Rated "Moderate Buy" by Wall Street Analysts

Key Points

• Analysts rate Martin Marietta a “Moderate Buy”: 15 of 24 covering brokerages recommend buying, seven rate it a hold and two a sell; the average 12-month price target is $642.60.
• Latest quarterly results were mixed: Revenue rose 28.3% year over year to $2.37 billion, beating estimates, while earnings per share of $5.47 fell short of the $5.99 consensus.
• The company raised its quarterly dividend to $0.84 per share, equivalent to $3.36 annually and a 0.6% yield.

Martin Marietta Materials, Inc. (NYSE:MLM - Get Free Report) has been assigned a consensus rating of "Moderate Buy" from the twenty-four brokerages that are presently covering the company, MarketBeat reports. Two research analysts have rated the stock with a sell recommendation, seven have issued a hold recommendation and fifteen have assigned a buy recommendation to the company. The average 1 year price target among brokerages that have covered the stock in the last year is $642.60.

A number of research analysts have recently issued reports on the stock. Stephens cut their price objective on shares of Martin Marietta Materials from $680.00 to $600.00 and set an "overweight" rating on the stock in a research report on Friday, October 2nd. JPMorgan Chase & Co. decreased their target price on shares of Martin Marietta Materials from $680.00 to $650.00 and set an "overweight" rating for the company in a research report on Tuesday, October 13th. Wells Fargo & Company increased their target price on shares of Martin Marietta Materials from $579.00 to $589.00 and gave the company an "overweight" rating in a research report on Thursday. UBS Group lowered their target price on shares of Martin Marietta Materials from $715.00 to $662.00 and set a "buy" rating for the company in a research note on Thursday, October 8th. Finally, Citigroup lifted their price target on shares of Martin Marietta Materials from $610.00 to $641.00 and gave the stock a "buy" rating in a report on Friday.

Martin Marietta Materials Trading Down 2.0%

Shares of NYSE:MLM opened at $517.36 on Friday. Martin Marietta Materials has a 12-month low of $464.92 and a 12-month high of $710.97. The business's fifty day simple moving average is $503.01 and its 200-day simple moving average is $573.42. The company has a market capitalization of $36.79 billion, a PE ratio of 13.69, a P/E/G ratio of 2.69 and a beta of 1.02. The company has a current ratio of 1.63, a quick ratio of 0.73 and a debt-to-equity ratio of 0.69.

Martin Marietta Materials (NYSE:MLM - Get Free Report) last announced its earnings results on Wednesday, November 4th. The construction company reported $5.47 EPS for the quarter, missing analysts' consensus estimates of $5.99 by ($0.52). The firm had revenue of $2.37 billion during the quarter, compared to the consensus estimate of $2.24 billion. Martin Marietta Materials had a return on equity of 7.96% and a net margin of 31.88%. The business's revenue for the quarter was up 28.3% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $6.85 earnings per share. As a group, equities research analysts predict that Martin Marietta Materials will post 16.58 earnings per share for the current fiscal year.

Martin Marietta Materials Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, September 30th. Stockholders of record on Tuesday, September 1st were given a $0.84 dividend. This represents a $3.36 dividend on an annualized basis and a dividend yield of 0.6%. The ex-dividend date of this dividend was Tuesday, September 1st. This is a positive change from Martin Marietta Materials's previous quarterly dividend of $0.83. Martin Marietta Materials's payout ratio is 8.89%.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in MLM. BlackRock Inc. acquired a new stake in Martin Marietta Materials in the second quarter worth about $2,706,134,000. Bank of America Corp DE acquired a new position in shares of Martin Marietta Materials during the second quarter valued at about $1,411,047,000. Dimensional Fund Advisors LP increased its holdings in shares of Martin Marietta Materials by 1.1% during the first quarter. Dimensional Fund Advisors LP now owns 546,170 shares of the construction company's stock valued at $321,442,000 after acquiring an additional 5,764 shares in the last quarter. Aberdeen Group plc increased its holdings in shares of Martin Marietta Materials by 1,735.1% during the third quarter. Aberdeen Group plc now owns 448,545 shares of the construction company's stock valued at $215,216,000 after acquiring an additional 424,103 shares in the last quarter. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised its position in shares of Martin Marietta Materials by 13.6% in the 2nd quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 386,046 shares of the construction company's stock valued at $222,633,000 after purchasing an additional 46,228 shares during the last quarter. 95.04% of the stock is owned by institutional investors and hedge funds.

Martin Marietta Materials Company Profile

Martin Marietta Materials, Inc is a U.S.-based supplier of building materials used in construction and infrastructure projects. Its products include crushed stone, sand and gravel, cement, ready-mixed concrete and asphalt.

The company also produces specialty products through its magnesia-based business, including lime, chemicals and products used in industrial and environmental applications. Its construction materials operations serve markets across the United States.

Martin Marietta traces its roots to 1939 and has grown through acquisitions and expansion of its materials operations.

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