Paradigm Capital Management Inc. NY Purchases New Holdings in Ducommun Incorporated $DCO

Key Points

• Paradigm Capital Management acquired 770,500 Ducommun shares worth approximately $142.7 million, giving it a 5.1% stake and making DCO its seventh-largest portfolio holding. Institutional investors collectively own 92.15% of the company.
• Ducommun exceeded quarterly expectations, reporting $1.18 in adjusted EPS versus the $0.98 consensus and revenue of $224.49 million, up 11% year over year. Analysts project $4.26 in full-year EPS.
• Analyst sentiment remains positive, with a consensus “Moderate Buy” rating and a $192.60 target price, although insiders sold 8,855 shares worth about $1.76 million over the past 90 days.

Paradigm Capital Management Inc. NY acquired a new stake in shares of Ducommun Incorporated (NYSE:DCO - Free Report) in the second quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The firm acquired 770,500 shares of the aerospace company's stock, valued at approximately $142,704,000. Ducommun makes up about 3.9% of Paradigm Capital Management Inc. NY's investment portfolio, making the stock its 7th biggest position. Paradigm Capital Management Inc. NY owned 5.10% of Ducommun at the end of the most recent quarter.

Other hedge funds and other institutional investors also recently bought and sold shares of the company. Allworth Financial LP purchased a new position in shares of Ducommun during the 2nd quarter valued at approximately $26,000. Optiver Holding B.V. bought a new stake in shares of Ducommun in the first quarter worth $27,000. EverSource Wealth Advisors LLC increased its stake in shares of Ducommun by 618.8% in 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 last quarter. State of Wyoming acquired a new stake in Ducommun in the first quarter valued at $35,000. Finally, Healthcare of Ontario Pension Plan Trust Fund acquired a new stake in Ducommun in the first quarter valued at $56,000. 92.15% of the stock is currently owned by hedge funds and other institutional investors.

Ducommun Stock Performance

Shares of DCO opened at $183.65 on Tuesday. The stock has a market capitalization of $2.77 billion, a PE ratio of -98.21 and a beta of 1.04. The business's fifty day moving average price is $180.92 and its 200 day moving average price is $151.68. The company has a debt-to-equity ratio of 0.39, a current ratio of 3.36 and a quick ratio of 2.38. Ducommun Incorporated has a 12-month low of $84.76 and a 12-month high of $210.39.

Ducommun (NYSE:DCO - Get Free Report) last released its earnings results on Thursday, August 6th. The aerospace company reported $1.18 earnings per share for the quarter, beating the consensus estimate of $0.98 by $0.20. The firm had revenue of $224.49 million during the quarter, compared to analyst estimates of $214.32 million. Ducommun had a negative net margin of 3.10% and a positive return on equity of 9.20%. The firm's revenue for the quarter was up 11.0% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $0.88 earnings per share. Equities research analysts forecast that Ducommun Incorporated will post 4.26 EPS for the current year.

Wall Street Analyst Weigh In

Several research analysts have weighed in on the stock. Truist Financial raised their price objective on shares of Ducommun from $150.00 to $209.00 and gave the stock a "buy" rating in a report on Thursday, August 13th. Weiss Ratings lowered shares of Ducommun from a "hold (c)" rating to a "hold (c-)" rating in a research note on Tuesday, August 4th. The Goldman Sachs Group restated a "buy" rating on shares of Ducommun in a research note on Monday, August 10th. Zacks Research raised shares of Ducommun from a "hold" rating to a "strong-buy" rating in a research report on Monday, August 10th. Finally, Citigroup reiterated a "buy" rating on shares of Ducommun in a research note on Wednesday, August 12th. One research analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating and two have assigned a Hold rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $192.60.

Insider Activity

In other news, CEO Stephen G. Oswald sold 5,766 shares of Ducommun stock in a transaction dated Wednesday, August 12th. The shares were sold at an average price of $201.15, for a total value of $1,159,830.90. Following the completion of the transaction, the chief executive officer directly owned 385,875 shares of the company's stock, valued at approximately $77,618,756.25. The trade was a 1.47% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, VP Laureen S. Gonzalez sold 589 shares of the business's 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 directly owned 11,172 shares of the company's stock, valued at approximately $1,698,032.28. This represents a 5.01% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 8,855 shares of company stock valued at $1,759,228 over the last ninety days. Company insiders own 5.00% 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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