Vulcan Materials Company (NYSE:VMC) Given Average Recommendation of "Hold" by Brokerages

Key Points

• Analyst sentiment is neutral: Sixteen brokerages give Vulcan Materials an average “Hold” rating, with seven buys, six holds, two sells and one strong buy. The average 12-month price target is $325, above the reported share price of $250.95.
• Quarterly results exceeded expectations: Vulcan reported adjusted earnings of $2.59 per share versus the $2.46 consensus estimate, while revenue rose 2.5% year over year to $2.16 billion.
• Shareholders received a modest dividend: The company paid a quarterly dividend of $0.52 per share, equivalent to $2.08 annually and a 0.8% yield. Insiders sold roughly $5.1 million of stock over the prior three months, while institutional investors and hedge funds owned 90.39% of shares.

Shares of Vulcan Materials Company (NYSE:VMC - Get Free Report) have earned an average recommendation of "Hold" from the sixteen research firms that are covering the firm, Marketbeat Ratings reports. Two research analysts have rated the stock with a sell recommendation, six have issued a hold recommendation, seven have issued a buy recommendation and one has assigned a strong buy recommendation to the company. The average 12-month target price among brokers that have issued a report on the stock in the last year is $325.00.

A number of research analysts have recently commented on the company. Oppenheimer assumed coverage on Vulcan Materials in a report on Thursday, May 28th. They set a "market perform" rating on the stock. Citigroup lowered shares of Vulcan Materials from a "buy" rating to a "cautious" rating in a research report on Wednesday. Royal Bank Of Canada increased their target price on shares of Vulcan Materials from $293.00 to $300.00 and gave the company a "sector perform" rating in a research report on Thursday, July 30th. Weiss Ratings reissued a "buy (b-)" rating on shares of Vulcan Materials in a research note on Tuesday, July 7th. Finally, Berenberg Bank set a $283.00 price target on shares of Vulcan Materials and gave the stock a "hold" rating in a research report on Tuesday, June 2nd.

Vulcan Materials Stock Performance

Shares of NYSE VMC opened at $250.95 on Friday. Vulcan Materials has a 52-week low of $246.20 and a 52-week high of $331.09. The stock has a market capitalization of $32.52 billion, a P/E ratio of 29.63, a P/E/G ratio of 2.25 and a beta of 1.05. The company has a quick ratio of 1.20, a current ratio of 1.76 and a debt-to-equity ratio of 0.47. The firm's 50-day moving average price is $278.83 and its two-hundred day moving average price is $282.48.

Vulcan Materials (NYSE:VMC - Get Free Report) last announced its quarterly earnings results on Wednesday, July 29th. The construction company reported $2.59 EPS for the quarter, beating the consensus estimate of $2.46 by $0.13. Vulcan Materials had a net margin of 13.75% and a return on equity of 13.05%. The company had revenue of $2.16 billion for the quarter, compared to analyst estimates of $2.14 billion. During the same quarter last year, the business earned $2.42 earnings per share. Vulcan Materials's revenue was up 2.5% compared to the same quarter last year. As a group, sell-side analysts forecast that Vulcan Materials will post 9.29 earnings per share for the current year.

Vulcan Materials Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, September 2nd. Investors of record on Thursday, August 13th were paid a dividend of $0.52 per share. This represents a $2.08 dividend on an annualized basis and a dividend yield of 0.8%. The ex-dividend date was Thursday, August 13th. Vulcan Materials's dividend payout ratio (DPR) is currently 24.56%.

Insider Activity at Vulcan Materials

In other Vulcan Materials news, SVP David P. Clement sold 2,000 shares of the stock in a transaction on Friday, August 7th. The stock was sold at an average price of $285.10, for a total transaction of $570,200.00. Following the completion of the transaction, the senior vice president directly owned 6,716 shares of the company's stock, valued at approximately $1,914,731.60. This trade represents a 22.95% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, Director J. Hill sold 14,000 shares of Vulcan Materials stock in a transaction dated Friday, August 21st. The stock was sold at an average price of $276.17, for a total value of $3,866,380.00. Following the transaction, the director directly owned 58,209 shares in the company, valued at approximately $16,075,579.53. The trade was a 19.39% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last three months, insiders have sold 18,212 shares of company stock worth $5,083,125. 0.65% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Vulcan Materials

A number of institutional investors and hedge funds have recently bought and sold shares of the business. California State Teachers Retirement System grew its stake in shares of Vulcan Materials by 30,567.8% in the 2nd quarter. California State Teachers Retirement System now owns 68,744,705 shares of the construction company's stock worth $20,280,375,000 after purchasing an additional 68,520,546 shares during the last quarter. BlackRock Inc. acquired a new stake in Vulcan Materials during the second quarter valued at approximately $2,868,444,000. Geode Capital Management LLC boosted its holdings in Vulcan Materials by 0.9% during the fourth quarter. Geode Capital Management LLC now owns 3,576,172 shares of the construction company's stock worth $1,016,168,000 after buying an additional 32,012 shares in the last quarter. Bank of America Corp DE bought a new stake in Vulcan Materials during the second quarter worth approximately $688,580,000. Finally, Morgan Stanley grew its position in Vulcan Materials by 7.9% in the fourth quarter. Morgan Stanley now owns 1,727,232 shares of the construction company's stock worth $492,642,000 after buying an additional 126,523 shares during the last quarter. 90.39% of the stock is owned by institutional investors and hedge funds.

Vulcan Materials Company Profile

Vulcan Materials Company NYSE: VMC is a major U.S. producer and supplier of construction materials. The company's primary business is aggregates, including crushed stone, sand and gravel, which are used in roads, bridges, buildings and other infrastructure projects.

Vulcan also produces and distributes asphalt and ready-mixed concrete, as well as calcium products used in construction, industrial and other applications. Its products are sold to public-sector customers, contractors, commercial developers and other businesses involved in construction and infrastructure development.

Founded in 1909 and headquartered in Birmingham, Alabama, Vulcan Materials has expanded through organic growth and acquisitions to operate production facilities, distribution terminals and related assets across much of the United States.

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