Ducommun (NYSE:DCO) Rating Lowered to "Hold" at Wall Street Zen

Key Points

• Wall Street Zen downgraded Ducommun from “buy” to “hold,” even as the broader analyst view remains constructive. The consensus rating is still “Moderate Buy,” with an average price target of $144.50.
• Ducommun’s latest quarterly results beat earnings expectations, reporting $1.05 EPS versus estimates of $0.91. Revenue rose 9.4% year over year to $215.8 million, though it came in slightly below expectations.
• Shares were trading near $137.64, close to the stock’s 52-week high of $148.82. The article also noted a director sale and continued strong institutional ownership, with hedge funds and other institutions holding 92.15% of shares.

Ducommun (NYSE:DCO - Get Free Report) was downgraded by investment analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a note issued to investors on Saturday.

Several other brokerages also recently commented on DCO. B. Riley Financial reaffirmed a "buy" rating on shares of Ducommun in a research note on Wednesday, January 28th. Citigroup dropped their price objective on Ducommun from $143.00 to $141.00 and set a "buy" rating on the stock in a research note on Thursday, April 2nd. The Goldman Sachs Group raised their price objective on Ducommun from $134.00 to $151.00 and gave the stock a "buy" rating in a research note on Monday, April 20th. Royal Bank Of Canada raised their price objective on Ducommun from $142.00 to $150.00 and gave the stock an "outperform" rating in a research note on Friday, March 13th. Finally, Truist Financial raised Ducommun to a "strong-buy" rating in a research note on Friday, May 1st. One research analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating and two have given a Hold rating to the company's stock. According to MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average price target of $144.50.

Ducommun Stock Performance

Shares of Ducommun stock opened at $137.64 on Friday. The company has a market capitalization of $2.06 billion, a PE ratio of -59.58 and a beta of 1.06. Ducommun has a 12 month low of $64.51 and a 12 month high of $148.82. The company has a current ratio of 3.50, a quick ratio of 2.47 and a debt-to-equity ratio of 0.45. The stock's fifty day simple moving average is $132.32 and its 200 day simple moving average is $112.75.

Ducommun (NYSE:DCO - Get Free Report) last issued its quarterly earnings data on Thursday, February 26th. The aerospace company reported $1.05 EPS for the quarter, topping the consensus estimate of $0.91 by $0.14. The business had revenue of $215.80 million for the quarter, compared to the consensus estimate of $217.42 million. Ducommun had a positive return on equity of 8.47% and a negative net margin of 4.11%.The firm's revenue was up 9.4% compared to the same quarter last year. During the same quarter last year, the business posted $0.75 EPS. On average, research analysts predict that Ducommun will post 4.01 EPS for the current year.

Insider Buying and Selling at Ducommun

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

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently modified their holdings of DCO. Alliancebernstein L.P. boosted its position in shares of Ducommun by 1,993.3% during the second quarter. Alliancebernstein L.P. now owns 302,969 shares of the aerospace company's stock worth $25,034,000 after buying an additional 288,496 shares during the period. Loomis Sayles & Co. L P acquired a new position in shares of Ducommun during the fourth quarter worth about $26,028,000. Aberdeen Group plc acquired a new position in shares of Ducommun during the third quarter worth about $19,035,000. Thornburg Investment Management Inc. bought a new position in shares of Ducommun in the 3rd quarter valued at about $12,953,000. Finally, Millennium Management LLC grew its holdings in shares of Ducommun by 267.3% in the 4th quarter. Millennium Management LLC now owns 116,872 shares of the aerospace company's stock valued at $11,118,000 after acquiring an additional 85,056 shares in the last quarter. 92.15% of the stock is owned by institutional investors and hedge funds.

About Ducommun

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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