Principal Financial Group Inc. Decreases Stake in Vulcan Materials Company $VMC

Key Points

• Principal Financial Group reduced its Vulcan Materials stake by 8.2% in the first quarter, selling 594,920 shares and leaving it with 6.64 million shares worth about $1.81 billion.
• Vulcan reported strong quarterly results, with EPS of $1.35 beating estimates of $1.10 and revenue of $1.76 billion topping expectations; revenue also rose 7.4% year over year.
• The company declared a quarterly dividend of $0.52 per share, while analysts remain mixed overall with an average rating of “Moderate Buy” and a consensus price target of $327.79.

Principal Financial Group Inc. cut its stake in shares of Vulcan Materials Company (NYSE:VMC - Free Report) by 8.2% during the first quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 6,642,386 shares of the construction company's stock after selling 594,920 shares during the quarter. Vulcan Materials comprises approximately 1.0% of Principal Financial Group Inc.'s investment portfolio, making the stock its 16th biggest holding. Principal Financial Group Inc. owned 5.12% of Vulcan Materials worth $1,808,737,000 at the end of the most recent reporting period.

Several other hedge funds have also recently made changes to their positions in VMC. Chesapeake Capital Corp IL grew its stake in Vulcan Materials by 0.9% during the 4th quarter. Chesapeake Capital Corp IL now owns 3,712 shares of the construction company's stock valued at $1,059,000 after purchasing an additional 33 shares during the last quarter. Composition Wealth LLC increased its holdings in shares of Vulcan Materials by 3.5% in the fourth quarter. Composition Wealth LLC now owns 1,014 shares of the construction company's stock valued at $289,000 after purchasing an additional 34 shares during the period. Capital Investment Advisors LLC raised its stake in shares of Vulcan Materials by 5.5% in the fourth quarter. Capital Investment Advisors LLC now owns 723 shares of the construction company's stock worth $206,000 after purchasing an additional 38 shares during the last quarter. Truist Financial Corp raised its stake in shares of Vulcan Materials by 0.3% in the fourth quarter. Truist Financial Corp now owns 13,331 shares of the construction company's stock worth $3,802,000 after purchasing an additional 38 shares during the last quarter. Finally, United Capital Financial Advisors LLC lifted its holdings in shares of Vulcan Materials by 1.2% during the third quarter. United Capital Financial Advisors LLC now owns 3,095 shares of the construction company's stock worth $952,000 after purchasing an additional 38 shares during the period. 90.39% of the stock is owned by institutional investors and hedge funds.

Insider Activity

In related news, SVP David P. Clement sold 2,212 shares of the business's stock in a transaction that occurred on Monday, June 15th. The stock was sold at an average price of $292.29, for a total transaction of $646,545.48. Following the completion of the sale, the senior vice president directly owned 8,716 shares in the company, valued at approximately $2,547,599.64. The trade was a 20.24% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. 0.65% of the stock is owned by corporate insiders.

Vulcan Materials Stock Down 0.9%

VMC stock opened at $292.64 on Tuesday. Vulcan Materials Company has a 52 week low of $252.35 and a 52 week high of $331.09. The company has a quick ratio of 1.89, a current ratio of 2.59 and a debt-to-equity ratio of 0.51. The firm has a 50-day simple moving average of $286.51 and a 200-day simple moving average of $291.03. The stock has a market capitalization of $37.97 billion, a P/E ratio of 34.80, a P/E/G ratio of 2.13 and a beta of 1.05.

Vulcan Materials (NYSE:VMC - Get Free Report) last issued its quarterly earnings results on Wednesday, April 29th. The construction company reported $1.35 earnings per share for the quarter, beating analysts' consensus estimates of $1.10 by $0.25. Vulcan Materials had a net margin of 13.81% and a return on equity of 12.95%. The firm had revenue of $1.76 billion for the quarter, compared to analyst estimates of $1.64 billion. During the same period last year, the company posted $1.00 EPS. Vulcan Materials's quarterly revenue was up 7.4% compared to the same quarter last year. Equities analysts forecast that Vulcan Materials Company will post 9.27 earnings per share for the current fiscal year.

Vulcan Materials Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, September 2nd. Stockholders of record on Thursday, August 13th will be given a $0.52 dividend. This represents a $2.08 annualized dividend and a dividend yield of 0.7%. The ex-dividend date is Thursday, August 13th. Vulcan Materials's dividend payout ratio (DPR) is 24.73%.

Analyst Ratings Changes

Several equities analysts recently weighed in on the stock. Citigroup cut their price target on shares of Vulcan Materials from $365.00 to $355.00 and set a "buy" rating on the stock in a report on Friday, May 1st. Wall Street Zen downgraded shares of Vulcan Materials from a "hold" rating to a "sell" rating in a report on Sunday. Weiss Ratings reiterated a "buy (b-)" rating on shares of Vulcan Materials in a research note on Tuesday, July 7th. UBS Group reduced their target price on shares of Vulcan Materials from $350.00 to $349.00 and set a "buy" rating for the company in a report on Wednesday, July 8th. Finally, Stifel Nicolaus set a $333.00 target price on shares of Vulcan Materials in a research report on Thursday, April 30th. Eight analysts have rated the stock with a Buy rating and eight have given a Hold rating to the stock. According to MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average price target of $327.79.

About Vulcan Materials

Vulcan Materials Company NYSE: VMC is a U.S.-based producer of construction materials that supplies the building and infrastructure markets. The company's primary products include construction aggregates such as crushed stone, sand and gravel, as well as asphalt mixes and ready-mixed concrete. These materials are used in a wide range of projects including highways, commercial and residential construction, and public infrastructure.

Vulcan operates an integrated network of quarries, asphalt plants and concrete facilities to produce and deliver materials to contractors, municipalities and private developers.

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