Ducommun (NYSE:DCO) Stock Rating Upgraded by Wall Street Zen

Key Points

• Wall Street Zen upgraded Ducommun to “buy” from “hold,” while the broader analyst consensus stands at “Moderate Buy” with an average price target of $180.80.
• Ducommun’s second-quarter results beat expectations: EPS came in at $1.18 versus $0.98 expected, while revenue rose 11% year over year to $224.49 million.
• The stock opened at $196.43, near its 12-month high of $210.39, but the company continues to report a negative net margin; insiders sold $1.2 million of shares over the past 90 days.

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

Other research analysts have also recently issued reports about the stock. Truist Financial lifted their target price on shares of Ducommun from $136.00 to $150.00 and gave the stock a "buy" rating in a report on Tuesday, May 26th. Royal Bank Of Canada increased their price target on shares of Ducommun from $175.00 to $200.00 and gave the company a "sector performer" rating in a report on Friday. B. Riley Financial reissued a "buy" rating on shares of Ducommun in a research report on Friday. The Goldman Sachs Group boosted their price objective on shares of Ducommun from $134.00 to $151.00 and gave the stock a "buy" rating in a report on Monday, April 20th. Finally, Citigroup upped their price objective on Ducommun from $167.00 to $216.00 and gave the company a "buy" rating in a research report on Wednesday, July 1st. Four analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company. According to data from MarketBeat.com, the company has an average rating of "Moderate Buy" and an average target price of $180.80.

Ducommun Stock Down 2.5%

Shares of NYSE:DCO opened at $196.43 on Friday. The stock has a fifty day simple moving average of $171.49 and a two-hundred day simple moving average of $144.97. The stock has a market capitalization of $2.96 billion, a price-to-earnings ratio of -105.04 and a beta of 1.04. Ducommun has a 12-month low of $84.76 and a 12-month high of $210.39. The company has a current ratio of 3.67, a quick ratio of 2.59 and a debt-to-equity ratio of 0.44.

Ducommun (NYSE:DCO - Get Free Report) last announced its quarterly earnings results on Thursday, August 6th. The aerospace company reported $1.18 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.98 by $0.20. Ducommun had a negative net margin of 3.10% and a positive return on equity of 9.31%. The company had revenue of $224.49 million for the quarter, compared to analysts' expectations of $214.32 million. During the same quarter in the previous year, the business posted $0.88 EPS. Ducommun's revenue was up 11.0% compared to the same quarter last year. On average, research analysts anticipate that Ducommun will post 4.07 earnings per share for the current fiscal year.

Insider Buying and Selling at Ducommun

In other Ducommun news, VP Rajiv A. Tata sold 1,612 shares of the business's stock in a transaction dated Wednesday, May 20th. The stock was sold at an average price of $145.00, for a total transaction of $233,740.00. Following the completion of the sale, the vice president owned 33,171 shares of the company's stock, valued at approximately $4,809,795. The trade was a 4.63% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, VP Laureen S. Gonzalez sold 589 shares of the business's stock in a transaction that occurred on Thursday, May 28th. The shares were sold at an average price of $151.99, for a total value of $89,522.11. Following the transaction, the vice president owned 11,172 shares of the company's stock, valued at approximately $1,698,032.28. This trade represents a 5.01% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last ninety days, insiders sold 7,883 shares of company stock valued at $1,200,336. Insiders own 5.00% of the company's stock.

Hedge Funds Weigh In On Ducommun

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. BlackRock Inc. purchased a new position in Ducommun during the 2nd quarter valued at approximately $359,395,000. Deutsche Bank AG bought a new position in shares of Ducommun in the second quarter worth about $41,095,000. Rice Hall James & Associates LLC bought a new position in Ducommun in the second quarter worth approximately $4,429,000. Focused Wealth Management Inc purchased a new position in Ducommun during the 2nd quarter worth $320,000. Finally, Mitsubishi UFJ Asset Management Co. Ltd. purchased a new position in Ducommun during the 2nd quarter worth $15,718,000. Institutional investors own 92.15% of the company's stock.

Ducommun News Roundup

Here are the key news stories impacting Ducommun this week:

• Positive Sentiment: Second-quarter adjusted earnings were $1.18 per share, exceeding the $0.98 consensus estimate and rising from $0.88 a year earlier. Revenue increased 11% year over year to $224.49 million, also ahead of expectations. Ducommun Q2 earnings report
• Positive Sentiment: Management highlighted record revenue and gross margin, while remaining performance obligations reached an all-time high. The backlog provides greater visibility into future aerospace and defense sales. Ducommun second-quarter results
• Positive Sentiment: Growth in engineered products and strong missile-related demand were identified as key drivers of the quarterly outperformance, supporting the company’s exposure to defense and aerospace programs. DCO Q2 deep dive
• Neutral Sentiment: Royal Bank of Canada raised its price target from $175 to $200 but maintained a “sector performer” rating. The new target represents only about 1.8% potential upside based on the reference price, suggesting analysts see fairly limited near-term appreciation. RBC Ducommun price target update
• Negative Sentiment: Despite the earnings beat, Ducommun continues to report a negative net margin, and its elevated valuation—reflected in a price-to-earnings ratio below zero—could make the stock sensitive to profit-taking after its substantial run toward the 12-month high.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source