Ducommun (NYSE:DCO) Share Price Passes Above 200-Day Moving Average - Should You Sell?

Key Points

• Ducommun shares rose above their 200-day moving average, trading as high as $172.30 and last changing hands near $168.58. The move came on volume of about 307,954 shares.
• Wall Street sentiment remains constructive, with several analysts recently raising price targets and maintaining buy ratings. Ducommun now has a consensus “Moderate Buy” rating and an average target price of $175.80.
• The company posted solid quarterly results, beating earnings and revenue expectations with $0.75 EPS and $209.02 million in revenue, up 7.7% year over year. However, insiders have also sold shares recently, even as institutional ownership remains high at 92.15%.

Ducommun Incorporated (NYSE:DCO - Get Free Report)'s share price crossed above its 200-day moving average during trading on Thursday . The stock has a 200-day moving average of $136.51 and traded as high as $172.30. Ducommun shares last traded at $168.5750, with a volume of 307,954 shares.

Analysts Set New Price Targets

Several research firms have weighed in on DCO. The Goldman Sachs Group boosted their price objective on Ducommun from $134.00 to $151.00 and gave the stock a "buy" rating in a research report on Monday, April 20th. Truist Financial raised their target price on Ducommun from $136.00 to $150.00 and gave the company a "buy" rating in a research report on Tuesday, May 26th. B. Riley Financial boosted their price target on shares of Ducommun from $155.00 to $187.00 and gave the stock a "buy" rating in a report on Wednesday, May 13th. Wall Street Zen upgraded shares of Ducommun from a "hold" rating to a "buy" rating in a research report on Saturday, June 13th. Finally, Citigroup raised their price objective on shares of Ducommun from $167.00 to $216.00 and gave the stock a "buy" rating in a report on Wednesday, July 1st. Four equities research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company's stock. According to MarketBeat.com, Ducommun has an average rating of "Moderate Buy" and a consensus target price of $175.80.

Ducommun Price Performance

The business has a fifty day moving average of $160.20 and a 200-day moving average of $136.51. The company has a current ratio of 3.67, a quick ratio of 2.59 and a debt-to-equity ratio of 0.44. The firm has a market cap of $2.54 billion, a PE ratio of -71.43 and a beta of 1.03.

Ducommun (NYSE:DCO - Get Free Report) last issued its quarterly earnings data on Tuesday, May 12th. The aerospace company reported $0.75 EPS for the quarter, beating the consensus estimate of $0.68 by $0.07. Ducommun had a negative net margin of 4.11% and a positive return on equity of 8.41%. The company had revenue of $209.02 million during the quarter, compared to analysts' expectations of $199.61 million. During the same quarter in the previous year, the company earned $0.83 earnings per share. Ducommun's revenue for the quarter was up 7.7% on a year-over-year basis. As a group, research analysts predict that Ducommun Incorporated will post 4.07 earnings per share for the current year.

Insiders Place Their Bets

In other Ducommun news, VP Rajiv A. Tata sold 1,612 shares of the firm's stock in a transaction dated Wednesday, May 20th. The stock was sold at an average price of $145.00, for a total value of $233,740.00. Following the sale, the vice president owned 33,171 shares of the company's stock, valued at $4,809,795. This trade represents a 4.63% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, VP Laureen S. Gonzalez sold 589 shares of the business's stock in a transaction dated Thursday, May 28th. The stock was sold at an average price of $151.99, for a total value of $89,522.11. Following the transaction, the vice president directly owned 11,172 shares of the company's stock, valued at $1,698,032.28. The trade was a 5.01% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 7,883 shares of company stock worth $1,200,336 in the last ninety days. 5.00% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Ducommun

Several hedge funds have recently bought and sold shares of the stock. Optiver Holding B.V. bought a new position in shares of Ducommun in the 1st quarter worth $27,000. EverSource Wealth Advisors LLC raised its position in shares of Ducommun by 618.8% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 345 shares of the aerospace company's stock valued at $29,000 after buying an additional 297 shares in the last quarter. State of Wyoming purchased a new stake in shares of Ducommun during the 1st quarter valued at $35,000. Healthcare of Ontario Pension Plan Trust Fund bought a new stake in shares of Ducommun during the 1st quarter worth $56,000. Finally, KBC Group NV bought a new stake in shares of Ducommun during the 1st quarter worth $71,000. 92.15% of the stock is currently owned by institutional investors.

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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