Ducommun (NYSE:DCO) Hits New 12-Month High - Still a Buy?

Key Points

• Shares of Ducommun reached a new 52-week high of $143.33 and were last trading around $141.64 on the uptick (volume ~30,670 shares).
• Analysts show mixed but generally positive sentiment: Ducommun has a consensus Moderate Buy rating with a $139.75 target, based on five Buy and two Hold ratings and recent target revisions in the $136–$150 range.
• The company beat quarterly EPS estimates ($1.05 vs. $0.91) but slightly missed revenue forecasts; it reports strong liquidity and low leverage (quick ratio 2.47, current ratio 3.50, debt/equity 0.45) despite a negative net margin and a reported negative P/E.

Shares of Ducommun Incorporated (NYSE:DCO - Get Free Report) reached a new 52-week high on Wednesday . The stock traded as high as $143.33 and last traded at $141.6410, with a volume of 30670 shares traded. The stock had previously closed at $134.40.

Wall Street Analysts Forecast Growth

Several research analysts have weighed in on DCO shares. Weiss Ratings reissued a "hold (c-)" rating on shares of Ducommun in a research report on Monday, December 29th. Wall Street Zen cut Ducommun from a "buy" rating to a "hold" rating in a research report on Saturday. Truist Financial boosted their price objective on Ducommun from $124.00 to $136.00 and gave the stock a "buy" rating in a research report on Friday, February 27th. Royal Bank Of Canada boosted their price objective on Ducommun from $142.00 to $150.00 and gave the stock an "outperform" rating in a research report on Friday, March 13th. Finally, Citigroup cut their price objective on Ducommun from $143.00 to $141.00 and set a "buy" rating on the stock in a research report on Thursday, April 2nd. Five research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company. According to MarketBeat, Ducommun currently has a consensus rating of "Moderate Buy" and a consensus target price of $139.75.

Ducommun Stock Performance

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 company has a 50-day simple moving average of $124.36 and a two-hundred day simple moving average of $106.21. The firm has a market cap of $2.11 billion, a PE ratio of -60.89 and a beta of 1.00.

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

Insider Activity at Ducommun

In other news, Director Richard A. Baldridge sold 10,440 shares of the company's stock in a transaction on 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 transaction, the director owned 20,100 shares of the company's stock, valued at $2,629,683. This represents a 34.18% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. 5.00% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in the company. Hsbc Holdings PLC lifted its position in shares of Ducommun by 84.5% during the 4th quarter. Hsbc Holdings PLC now owns 5,822 shares of the aerospace company's stock valued at $553,000 after buying an additional 2,667 shares during the last quarter. XTX Topco Ltd purchased a new position in shares of Ducommun during the 4th quarter valued at $628,000. VARCOV Co. purchased a new position in shares of Ducommun during the 4th quarter valued at $536,000. Voloridge Investment Management LLC bought a new stake in shares of Ducommun during the 4th quarter valued at $421,000. Finally, Wellington Management Group LLP raised its stake in shares of Ducommun by 1.8% during the 4th quarter. Wellington Management Group LLP now owns 103,934 shares of the aerospace company's stock valued at $9,887,000 after purchasing an additional 1,795 shares during the period. Hedge funds and other institutional investors own 92.15% of the company's stock.

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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