Hsbc Holdings PLC Buys New Position in Valmont Industries, Inc. $VMI

Key Points

• HSBC Holdings PLC acquired 12,178 Valmont Industries shares worth approximately $7.0 million during the second quarter, joining several other institutional investors. Institutions and hedge funds collectively own 87.84% of VMI.
• Valmont exceeded quarterly expectations, reporting $6.14 EPS versus the $5.80 consensus and $1.12 billion in revenue, up 6.5% year over year. The company also declared a quarterly dividend of $0.77 per share, yielding about 0.6% annually.
• Analysts maintain a generally positive outlook, with four Buy ratings and two Holds producing a “Moderate Buy” consensus and an average price target of $587, above the reported share price of $476.92.

Hsbc Holdings PLC bought a new stake in Valmont Industries, Inc. (NYSE:VMI - Free Report) during the 2nd quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The fund bought 12,178 shares of the industrial products company's stock, valued at approximately $7,012,000. Hsbc Holdings PLC owned approximately 0.06% of Valmont Industries as of its most recent filing with the Securities and Exchange Commission.

A number of other large investors have also recently bought and sold shares of VMI. EFG International AG bought a new position in shares of Valmont Industries during the 2nd quarter worth approximately $5,536,000. Canada Pension Plan Investment Board bought a new stake in shares of Valmont Industries in the second quarter worth $1,687,000. Legal & General Group Plc bought a new stake in shares of Valmont Industries in the second quarter worth $15,279,000. The Manufacturers Life Insurance Company acquired a new position in Valmont Industries during the second quarter worth $9,716,000. Finally, Cullen Capital Management LLC acquired a new position in Valmont Industries during the second quarter worth $358,000. Institutional investors and hedge funds own 87.84% of the company's stock.

Insider Activity

In related news, Director Theodor Werner Freye sold 800 shares of Valmont Industries stock in a transaction dated Monday, July 27th. The stock was sold at an average price of $495.00, for a total transaction of $396,000.00. Following the completion of the transaction, the director owned 2,805 shares in the company, valued at approximately $1,388,475. This trade represents a 22.19% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CFO John L. Schwietz purchased 208 shares of Valmont Industries stock in a transaction that occurred on Thursday, July 23rd. The shares were acquired at an average price of $486.14 per share, with a total value of $101,117.12. Following the acquisition, the chief financial officer directly owned 2,992 shares of the company's stock, valued at $1,454,530.88. This trade represents a 7.47% increase in their position. The SEC filing for this purchase provides additional information. Company insiders own 1.42% of the company's stock.

Valmont Industries Price Performance

NYSE:VMI opened at $476.92 on Friday. The stock has a market capitalization of $9.21 billion, a PE ratio of 18.57, a P/E/G ratio of 1.10 and a beta of 1.35. Valmont Industries, Inc. has a 1-year low of $360.41 and a 1-year high of $585.71. The firm has a fifty day simple moving average of $515.90 and a 200 day simple moving average of $486.31. The company has a current ratio of 2.35, a quick ratio of 1.55 and a debt-to-equity ratio of 0.42.

Valmont Industries (NYSE:VMI - Get Free Report) last posted its quarterly earnings results on Tuesday, July 21st. The industrial products company reported $6.14 earnings per share (EPS) for the quarter, topping the consensus estimate of $5.80 by $0.34. The firm had revenue of $1.12 billion for the quarter, compared to analyst estimates of $1.09 billion. Valmont Industries had a net margin of 11.70% and a return on equity of 25.57%. The company's quarterly revenue was up 6.5% compared to the same quarter last year. During the same period in the prior year, the firm posted $4.88 earnings per share. On average, research analysts expect that Valmont Industries, Inc. will post 23.08 EPS for the current fiscal year.

Valmont Industries Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, October 15th. Stockholders of record on Friday, September 25th will be issued a $0.77 dividend. This represents a $3.08 dividend on an annualized basis and a dividend yield of 0.6%. The ex-dividend date of this dividend is Friday, September 25th. Valmont Industries's dividend payout ratio is presently 11.99%.

Wall Street Analysts Forecast Growth

VMI has been the topic of several recent research reports. Oppenheimer set a $600.00 price target on shares of Valmont Industries and gave the company an "outperform" rating in a research note on Thursday, May 28th. JPMorgan Chase & Co. increased their price objective on shares of Valmont Industries from $600.00 to $620.00 and gave the stock an "overweight" rating in a research note on Wednesday, July 22nd. Zacks Research cut Valmont Industries from a "strong-buy" rating to a "hold" rating in a report on Monday, July 20th. Wall Street Zen downgraded Valmont Industries from a "strong-buy" rating to a "buy" rating in a research report on Saturday, August 8th. Finally, Stifel Nicolaus upped their target price on Valmont Industries from $645.00 to $678.00 and gave the stock a "buy" rating in a report on Monday, July 20th. Four analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company. According to data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus price target of $587.00.

Valmont Industries Company Profile

Valmont Industries, Inc NYSE: VMI is a diversified industrial manufacturer specializing in infrastructure and agricultural products. Headquartered in Omaha, Nebraska, the company engages in the design, production and distribution of engineered products that support water management, power transmission, lighting and traffic infrastructure. Valmont's solutions range from center-pivot and lateral-move irrigation systems to utility poles, transmission towers, lighting structures and highway traffic signal support structures.

The company operates through several core business segments.

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