Stockbridge Partners LLC Invests $314.47 Million in Vulcan Materials Company $VMC

Key Points

• Stockbridge Partners LLC acquired 1.07 million shares of Vulcan Materials worth approximately $314.47 million, making VMC its seventh-largest holding and representing about 6.6% of its portfolio.
• Analysts maintain a generally positive outlook, with a consensus rating of “Moderate Buy” and an average price target of $327.93; recent targets range from $300 to $340.
• Vulcan Materials exceeded quarterly earnings expectations, reporting $2.59 in EPS and $2.16 billion in revenue, while declaring a quarterly dividend of $0.52 per share, yielding about 0.8% annually.

Stockbridge Partners LLC bought a new stake in Vulcan Materials Company (NYSE:VMC - Free Report) during the second quarter, according to its most recent disclosure with the SEC. The institutional investor bought 1,065,963 shares of the construction company's stock, valued at approximately $314,470,000. Vulcan Materials accounts for about 6.6% of Stockbridge Partners LLC's investment portfolio, making the stock its 7th biggest holding. Stockbridge Partners LLC owned approximately 0.82% of Vulcan Materials as of its most recent SEC filing.

Other hedge funds and other institutional investors have also bought and sold shares of the company. Burkett Financial Services LLC bought a new stake in Vulcan Materials in the second quarter valued at approximately $25,000. Meeder Asset Management Inc. lifted its position in shares of Vulcan Materials by 71.7% in the first quarter. Meeder Asset Management Inc. now owns 103 shares of the construction company's stock valued at $28,000 after buying an additional 43 shares during the last quarter. Birchwood Financial Partners Inc. bought a new position in shares of Vulcan Materials during the 4th quarter worth approximately $29,000. Measured Wealth Private Client Group LLC bought a new position in shares of Vulcan Materials during the 3rd quarter worth approximately $30,000. Finally, Concord Wealth Partners acquired a new position in shares of Vulcan Materials during the 4th quarter worth approximately $36,000. Institutional investors own 90.39% of the company's stock.

Wall Street Analyst Weigh In

Several brokerages have issued reports on VMC. Royal Bank Of Canada raised their price target on Vulcan Materials from $293.00 to $300.00 and gave the company a "sector perform" rating in a report on Thursday, July 30th. Weiss Ratings reiterated a "buy (b-)" rating on shares of Vulcan Materials in a report on Tuesday, July 7th. Barclays increased their price objective on shares of Vulcan Materials from $296.00 to $340.00 and gave the company an "overweight" rating in a research report on Thursday, April 30th. Wells Fargo & Company cut their target price on shares of Vulcan Materials from $310.00 to $305.00 and set an "equal weight" rating for the company in a research note on Wednesday, July 8th. Finally, Wall Street Zen downgraded shares of Vulcan Materials from a "hold" rating to a "sell" rating in a report on Sunday, July 12th. Eight equities research analysts have rated the stock with a Buy rating and eight have assigned a Hold rating to the company's stock. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $327.93.

Insider Buying and Selling at Vulcan Materials

In related news, SVP David P. Clement sold 2,000 shares of the business's stock in a transaction that occurred on Friday, August 7th. The stock was sold at an average price of $285.10, for a total value of $570,200.00. Following the completion of the sale, the senior vice president directly owned 6,716 shares in the company, valued at approximately $1,914,731.60. The trade was a 22.95% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through this link. Insiders own 0.65% of the company's stock.

Vulcan Materials Trading Down 0.1%

Shares of Vulcan Materials stock opened at $275.87 on Tuesday. The company has a debt-to-equity ratio of 0.47, a quick ratio of 1.20 and a current ratio of 1.76. The firm has a 50-day moving average of $288.85 and a 200-day moving average of $287.23. Vulcan Materials Company has a 52-week low of $252.35 and a 52-week high of $331.09. The stock has a market cap of $35.75 billion, a PE ratio of 32.57, a PEG ratio of 1.99 and a beta of 1.06.

Vulcan Materials (NYSE:VMC - Get Free Report) last released its quarterly earnings results on Wednesday, July 29th. The construction company reported $2.59 EPS for the quarter, topping analysts' consensus estimates of $2.46 by $0.13. The business had revenue of $2.16 billion for the quarter, compared to analyst estimates of $2.14 billion. Vulcan Materials had a net margin of 13.75% and a return on equity of 13.05%. Vulcan Materials's revenue for the quarter was up 2.5% compared to the same quarter last year. During the same period last year, the firm earned $2.42 earnings per share. As a group, sell-side analysts forecast that Vulcan Materials Company will post 9.29 EPS for the current year.

Vulcan Materials Announces Dividend

The firm also recently declared 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 dividend on an annualized basis and a dividend yield of 0.8%. The ex-dividend date is Thursday, August 13th. Vulcan Materials's payout ratio is presently 24.56%.

Vulcan Materials Profile

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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