Ducommun Incorporated (NYSE:DCO) Short Interest Up 21.2% in March

Key Points

• Short interest up 21.2% — short interest rose to 420,961 shares as of March 31 (about 3.0% of shares sold short) with a days-to-cover ratio of 2.5.
• Insider selling: Director Richard A. Baldridge sold 10,440 shares on March 10 for roughly $1.37 million, reducing his holding by 34.18%; insiders own about 5% of the stock.
• Fundamentals and sentiment: Ducommun (market cap ~$2.05B) reported an EPS beat and 9.4% year-over-year revenue growth last quarter, and analysts maintain a consensus rating of Moderate Buy with a $139.75 target.

Ducommun Incorporated (NYSE:DCO - Get Free Report) saw a significant increase in short interest in March. As of March 31st, there was short interest totaling 420,961 shares, an increase of 21.2% from the March 15th total of 347,364 shares. Currently, 3.0% of the shares of the company are sold short. Based on an average daily volume of 166,749 shares, the days-to-cover ratio is presently 2.5 days.

Ducommun Stock Performance

NYSE:DCO opened at $137.04 on Friday. The stock has a market cap of $2.05 billion, a P/E ratio of -59.32 and a beta of 1.00. The company has a quick ratio of 2.47, a current ratio of 3.50 and a debt-to-equity ratio of 0.45. The business's 50-day moving average price is $127.76 and its two-hundred day moving average price is $108.32. Ducommun has a twelve month low of $53.78 and a twelve month high of $143.33.

Ducommun (NYSE:DCO - Get Free Report) last posted its quarterly earnings data on Thursday, February 26th. The aerospace company reported $1.05 earnings per share for the quarter, topping the consensus estimate of $0.91 by $0.14. Ducommun had a negative net margin of 4.11% and a positive return on equity of 8.47%. The company had revenue of $215.80 million for the quarter, compared to analysts' expectations of $217.42 million. During the same period in the prior year, the business earned $0.75 earnings per share. Ducommun's revenue for the quarter was up 9.4% compared to the same quarter last year. As a group, equities analysts predict that Ducommun will post 3.21 EPS for the current fiscal year.

Insider Activity

In related news, Director Richard A. Baldridge sold 10,440 shares of the stock in a transaction dated Tuesday, March 10th. The stock was sold at an average price of $130.83, for a total transaction of $1,365,865.20. Following the sale, the director owned 20,100 shares of the company's stock, valued at approximately $2,629,683. This represents a 34.18% decrease in their position. The sale was disclosed in a document filed 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 and hedge funds have recently made changes to their positions in the stock. SG Americas Securities LLC grew its position in Ducommun by 95.9% in the first quarter. SG Americas Securities LLC now owns 60,333 shares of the aerospace company's stock worth $7,361,000 after acquiring an additional 29,534 shares in the last quarter. Hsbc Holdings PLC lifted its stake in Ducommun by 84.5% during the fourth quarter. Hsbc Holdings PLC now owns 5,822 shares of the aerospace company's stock worth $553,000 after purchasing an additional 2,667 shares during the last quarter. XTX Topco Ltd bought a new stake in Ducommun during the fourth quarter worth about $628,000. VARCOV Co. purchased a new position in shares of Ducommun in the 4th quarter worth about $536,000. Finally, Voloridge Investment Management LLC purchased a new position in shares of Ducommun in the 4th quarter worth about $421,000. Hedge funds and other institutional investors own 92.15% of the company's stock.

Wall Street Analysts Forecast Growth

Several equities research analysts have recently weighed in on DCO shares. Weiss Ratings reiterated a "hold (c-)" rating on shares of Ducommun in a research report on Monday, December 29th. The Goldman Sachs Group raised their price objective on shares of Ducommun from $117.00 to $132.00 and gave the company a "buy" rating in a research report on Tuesday, January 20th. Citigroup reduced their price objective on shares of Ducommun from $143.00 to $141.00 and set a "buy" rating for the company in a research note on Thursday, April 2nd. B. Riley Financial reaffirmed a "buy" rating on shares of Ducommun in a report on Wednesday, January 28th. Finally, Wall Street Zen cut shares of Ducommun from a "buy" rating to a "hold" rating in a research note on Saturday, April 4th. Five research analysts have rated the stock with a Buy rating and two have given a Hold rating to the company's stock. According to MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $139.75.

Ducommun Company Profile

Ducommun Incorporated, through its Electronics and Structures segments, provides engineered products and integrated systems for the global aerospace, defense and space markets. The Electronics segment focuses on high-reliability electronic assemblies, cable and wire harnesses, connector systems and harsh environment electronics for flight-critical applications. In the Structures segment, Ducommun manufactures complex metallic and composite components such as flight control surfaces, skin panels, heat exchangers and other aerostructures for commercial and military platforms.

Founded in 1849 in California as a hardware and stagecoach parts supplier, Ducommun expanded into aerospace manufacturing during World War II and has since grown its capabilities through targeted acquisitions and organic investments.

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