Ducommun (NYSE:DCO) Stock Crosses Above Two Hundred Day Moving Average - Time to Sell?

Key Points

• Ducommun shares rose above their 200-day moving average during Wednesday trading, hitting as high as $180.52 before closing at $172.7160. The move came as investors weighed the stock’s recent technical strength against the article’s “time to sell?” framing.
• Analyst sentiment remains constructive, with five Buy ratings and two Holds, giving Ducommun a consensus “Moderate Buy” rating and an average target price of $171.80. Recent target hikes from firms including B. Riley, RBC, and Goldman Sachs helped support that view.
• The company posted solid quarterly results, beating EPS and revenue estimates with $0.75 EPS on $209.02 million in revenue, up 7.7% year over year. However, insiders have sold shares recently, including two vice presidents, which may be notable for investors.

Ducommun Incorporated (NYSE:DCO - Get Free Report) shares crossed above its two hundred day moving average during trading on Wednesday . The stock has a two hundred day moving average of $133.50 and traded as high as $180.52. Ducommun shares last traded at $172.7160, with a volume of 285,786 shares changing hands.

Analyst Upgrades and Downgrades

Several equities research analysts recently issued reports on DCO shares. B. Riley Financial lifted their price target on shares of Ducommun from $155.00 to $187.00 and gave the stock a "buy" rating in a research note on Wednesday, May 13th. Weiss Ratings restated a "hold (c)" rating on shares of Ducommun in a research note on Wednesday, June 24th. Wall Street Zen upgraded Ducommun from a "hold" rating to a "buy" rating in a report on Saturday, June 13th. Royal Bank Of Canada increased their target price on Ducommun from $150.00 to $155.00 and gave the company an "outperform" rating in a research note on Wednesday, May 13th. Finally, The Goldman Sachs Group raised their price target on shares of Ducommun from $134.00 to $151.00 and gave the stock a "buy" rating in a research report on Monday, April 20th. Five investment analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company's stock. Based on data from MarketBeat, Ducommun presently has an average rating of "Moderate Buy" and a consensus target price of $171.80.

Ducommun Price Performance

The stock has a market capitalization of $2.61 billion, a P/E ratio of -73.18 and a beta of 1.03. The company has a 50 day moving average of $157.01 and a 200-day moving average of $133.50. The company has a quick ratio of 2.59, a current ratio of 3.67 and a debt-to-equity ratio of 0.44.

Ducommun (NYSE:DCO - Get Free Report) last released its earnings results on Tuesday, May 12th. The aerospace company reported $0.75 earnings per share 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 firm had revenue of $209.02 million during the quarter, compared to analyst estimates of $199.61 million. During the same quarter in the previous year, the firm earned $0.83 earnings per share. The firm's revenue for the quarter was up 7.7% compared to the same quarter last year. Sell-side analysts predict that Ducommun Incorporated will post 4.07 EPS for the current year.

Insider Buying and Selling

In related news, VP Laureen S. Gonzalez sold 589 shares of the stock in a transaction dated Thursday, May 28th. The shares were sold at an average price of $151.99, for a total transaction of $89,522.11. Following the sale, the vice president owned 11,172 shares in the company, valued at $1,698,032.28. This represents a 5.01% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, VP Jerry L. Redondo sold 5,682 shares of the stock in a transaction that occurred on Thursday, May 14th. The stock was sold at an average price of $154.36, for a total value of $877,073.52. Following the sale, the vice president owned 62,034 shares in the company, valued at $9,575,568.24. The trade was a 8.39% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold a total of 7,883 shares of company stock worth $1,200,336 over the last quarter. 5.00% of the stock is owned by company insiders.

Hedge Funds Weigh In On Ducommun

Several institutional investors have recently modified their holdings of DCO. Optiver Holding B.V. acquired a new position in Ducommun during the 1st quarter valued at about $27,000. State of Wyoming bought a new stake in shares of Ducommun during the first quarter valued at approximately $35,000. EverSource Wealth Advisors LLC boosted its position in shares of Ducommun by 618.8% during the second quarter. EverSource Wealth Advisors LLC now owns 345 shares of the aerospace company's stock worth $29,000 after buying an additional 297 shares during the period. Healthcare of Ontario Pension Plan Trust Fund acquired a new position in shares of Ducommun during the first quarter worth approximately $56,000. Finally, KBC Group NV bought a new position in Ducommun in the 1st quarter worth approximately $71,000. 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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